Tesla Stock Loses $8 Off Its Price After Racism Case: What’s The Deal?

Tesla’s board is expected to vote on Thursday to ask for a review of how the company addresses the complaints of its employees. TSLA stock is trading at $772.25 today, losing $8 off its price per share, comparing to $780 as of yesterday’s session. Tesla’s board has asked the company to study the effects of its current practice of mandatory arbitration in its workplace.

Owen Diaz, a former Tesla employee, was awarded $26 million on Monday after a jury ruled that the company’s discriminatory hiring practices led to his termination. Tesla’s mandatory arbitration policy prevented contract workers from going to trial. Tesla said that arbitration can be a faster and cheaper way to resolve disputes, and it’s better for both parties than lengthy litigation. Some companies, such as Google and Facebook, have scaled back or eliminated their mandatory arbitration policies. Others, such as Uber and Lyft, no longer require it.