Tesla
TSLA
Consumer Discretionary
5
exclusion reasons
2 themes
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.
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."
ViolationTracker documents 49+ safety-related offenses, SEC $20M investor protection penalty for misleading autopilot disclosures, and False Claims Act penalties
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.
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.
Tesla remains under active NLRB scrutiny in 2026. In October 2024, the Fifth Circuit vacated an NLRB order but remanded cases concerning the selective enforcement of dress codes (preventing union insignia) and the retaliatory firing of union organizers. The company’s continued use of "Team Wear" policies to suppress union visibility remains a documented exclusionary tactic.
Research Sources
4 organizations
Related Exclusions
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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.
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