Tesla Strategy in EEOC Suit Boosted By State-Federal Turf Fights

The US Equal Employment Opportunity Commission is gearing up for what could be an uphill legal battle against Elon Musk’s Tesla Inc., facing both a CEO with an appetite for litigation and a state civil rights agency doing potentially conflicting work.

The EEOC sued Tesla on Sept. 28, claiming that it created a hostile work environment at its factory in Fremont, Calif. It alleges that Black employees were frequently subjected to racial hostility, slurs, and racist graffiti as well as retaliation for complaining about the harassment and discrimination.

Tesla has faced bias lawsuits over its Fremont factory dating back ...