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The Wall Street Journal: Tesla countersues California agency that filed racial discrimination suit against it

Tesla Inc. has countersued the California agency that filed a racial discrimination lawsuit against the company, alleging that the government organization violated state law in bringing about the suit.

The electric-vehicle maker, in the suit filed Thursday in Alameda County Superior Court, said the California Civil Rights Department — previously known as the California Department of Fair Employment and Housing — violated state rules by filing the lawsuit without seeking public comment or holding a public hearing.

The Tesla
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lawsuit says its aim is to stop the agency, also referred to as CRD, from breaking rules collectively known as the California Administrative Procedure Act.

“CRD abused its discretion, acted in excess of its statutory power and authority, and failed to proceed in the manner required by law by promulgating and generally applying the rules,” Tesla says in its countersuit. “The public interest demands that CRD be held accountable for its underground rulemaking in violation of the APA.”

The CRD declined to comment on the countersuit.

An expanded version of this report appears on WSJ.com.

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