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Tesla

TSLA

Consumer Discretionary

5

exclusion reasons

2 themes

Labor Rights (3) Corporate Misconduct (2)
TSLA Consumer Discretionary Current as of April 2026

This page is part of our public exclusion list — a transparency tool that shows which companies we screen out and why. It is not investment advice, and it is not an accusation. But it is subject to change as our understanding of the facts evolves.

Working Conditions
Since Mar 16, 2026

As of 2025, the AFL-CIO found 27 open cases with workplace safety violations. They note: "In many cases, Tesla refuses to pay small fines and prolongs the process by contesting the citations. In most cases, the hazards do not have to be fixed while the citation is under contest, leaving workers in danger."

Forced Labor
Since Mar 12, 2026

A May 2025 investigation by the Bureau of Investigative Journalism (TBIJ) linked Tesla’s supply chain to "labor transfer" schemes in Xinjiang. Specifically, Tesla’s partnership with Sanan Optoelectronics for chips involves a supplier that utilizes state-coerced Uyghur labor. Additionally, Human Rights Watch documented Tesla’s significant exposure to the "tainted" aluminum industry in Xinjiang, where forced labor is integrated into the coal-to-smelter energy cycle. The company's use of cobalt suppliers like Glencore is additional cause for concern.

Regulatory Violations
Since Mar 12, 2026

Violation Tracker documents 78 enforcement records totaling $99.4M in penalties against Tesla. Safety violations include multiple OSHA citations at the Fremont and Austin Gigafactory plants (Austin had the 8th most injuries of any US workplace in 2023 — 1 injury per 13 workers). A fatal electrocution of a contractor at the Austin facility (August 2024) resulted in OSHA citations. The SEC imposed a $20M penalty on Tesla (and $20M on Elon Musk personally) in 2018 for securities fraud — Musk's "funding secured" tweet about taking Tesla private at $420/share, which the SEC found was not based on any actual financing discussions. NHTSA has issued multiple recalls related to Autopilot and Full Self-Driving software.

Workplace Discrimination
Since Jul 28, 2021

Tesla is currently in private mediation with the U.S. Equal Employment Opportunity Commission (EEOC) as of January 2026 to resolve a landmark 2023 lawsuit. The EEOC alleged a "pervasive" pattern of racial harassment and retaliation against Black workers at the Fremont plant, including the open use of slurs and racist graffiti that the company failed to address. This follows the high-profile Owen Diaz case, where a federal jury reaffirmed findings of a racially hostile work environment, leading to a multi-million dollar settlement in March 2024.

Anti-Union Activity
Since Jul 28, 2021

Tesla has maintained a consistent anti-union posture across its operations. In October 2024, the 5th Circuit vacated the NLRB's order concerning selective dress code enforcement and retaliatory firing, remanding for further proceedings — a significant procedural win for Tesla. However, CEO Elon Musk has publicly stated opposition to unionization, and no Tesla facility in the US is unionized despite organizing attempts at the Fremont plant and Buffalo Gigafactory. The UAW launched a formal organizing campaign at Tesla in 2023. NLRB regional offices continue to investigate ULP charges. The broader context: Tesla is the only major US automaker whose production workforce is entirely non-union.

Research Sources 7 organizations

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Companies appear on our exclusion list based on our investment judgment — not because they've done anything illegal. This is a difference of values and opinion, not an accusation of wrongdoing. Exclusion does not constitute a recommendation against investing in any company, and absence from the list does not constitute a recommendation to invest.

This information is provided for educational and transparency purposes only and should not be relied upon as investment advice. Data is drawn from independent watchdogs, NGOs, government registries, and Ethical Capital's ongoing research — see Research Sources for the full list.

Ethical Capital LLC is a state-registered investment adviser in Utah (CRD #316032). Registration does not imply a certain level of skill or training.