Tesla has formally agreed to enter mediation with the U.S. Equal Employment Opportunity Commission to address allegations that its Fremont, California, assembly plant tolerated severe and widespread harassment of Black employees. The EEOC’s lawsuit, filed in November, accuses the company of failing to take adequate corrective action despite receiving more than 40 individual charges of discrimination and hostile work environment complaints since 2015. Under the mediation agreement, Tesla will engage a neutral third party to facilitate discussions on potential remedies, which could include monetary relief for affected workers, changes to its anti-harassment training programs, and enhanced reporting and oversight mechanisms. Investors will closely monitor the process for any disclosure of related financial reserves or governance reforms that may impact the company’s reputation and cost structure.

According to data from industry-tracker Cox Automotive, Tesla’s share of U.S. electric vehicle deliveries surged to 59% in the fourth quarter, up from 41% in the prior quarter, following the expiration of federal EV tax credits. Despite a modest overall decline in national EV deliveries, Tesla still moved approximately 138,000 vehicles during the period, leveraging its high production volume to maintain competitive pricing and profitability. By contrast, legacy automakers Ford and Rivian each posted single-digit shares of 6% and 4%, respectively, while General Motors captured just over 10% but took $6 billion in charges tied to scaling back its EV strategy. Tesla’s volume advantage and vertically integrated manufacturing continue to underpin its dominant position even as government subsidies phase out.

Tesla delivered just 20,237 units of its Cybertruck in the U.S. last year, representing a nearly 50% drop from the prior year and a 68% decline in the fourth quarter alone. These figures contrast sharply with the 250,000-unit annual sales target set by the company before the model’s 2023 launch. Production delays driven by its unconventional stainless-steel body and angular design have exacerbated inventory shortages, while quality concerns have triggered 10 separate recalls since introduction—ranging from trapped accelerator pedals to unsecured off-road light bars. With the base price still hovering around $80,000 and availability limited to North America and select Middle Eastern markets, the Cybertruck’s performance remains a critical test of Tesla’s ability to scale niche products beyond its core sedan and crossover lines.