Musk, Other Tesla Leaders Beat Investors’ ‘Toxic Workplace’ Suit

A federal court in Texas dismissed a lawsuit brought by Tesla Inc. investors against CEO Elon Musk and other company leaders alleging they fostered a toxic workplace culture.

The shareholders will have until mid-May to amend the complaint, after Judge David Ezra in the US District Court for the Western District of Texas dismissed their suit without prejudice in a sealed order entered Friday.

Initially filed in June 2022, the lawsuit alleges Tesla directors and executives allowed a “toxic workplace culture grounded in racist and sexist abuse and discrimination.” The derivative suit, brought on behalf of Tesla, alleges the issues ...