Seven US senators raise concerns about Tesla use of forced arbitration clauses (Image credit- Market screener)
US senators have taken it upon themselves to criticize the CEO of Tesla, one of the most well-known electric vehicle manufacturers in the world, for using “arbitration clauses” to shield the business from legal action.
The senators have written to Elon Musk outlining their grievances and requesting a statement or reply from him that addresses these concerns.
Along with the Autopilot cases, where customers have claimed the company’s misleading promotion of its safety based on ratings, the senators cited how many workers gripe about the workplace.
The charges against Elon Musk’s company, Tesla, revolve around a number of issues, according to a letter that seven US senators have signed and sent to him. Senators Richard Blumenthal, Edward Markey, Elizabeth Warren, Jeffrey Merkley, Richard Durbin, Bernard Sanders, and Sherrod Brown are among those who have signed.
The concerns are causing Musk to issue a comment on Tesla’s practices, focusing on instances of staff discrimination.
One accusation raised by the senators is racial discrimination against the company’s black employees, with managers employing graffiti and racial insults to spread hate. Another complaint is that the company’s female employees are subjected to harassment and gender discrimination.
The amount to which the specifics of the company’s discriminatory practices may be revealed is dramatically lowered by Tesla’s secret arbitration agreements, which appear to be required for employees, the senators said.
The reports claim that the senators also brought up the company’s autonomous driving capabilities and even went so far as to label them a “sham.”
The senators also assert that Tesla’s safety ratings from the regulatory board are inaccurate or not as transparent to the general public regarding the capabilities of its cars, resulting in internal consumer arbitration.
Tesla and the Numerous Inquiries It Currently Faces
Tesla is currently in a situation where “you win some, you lose some,” since it is the subject of several complaints surrounding its self-driving capabilities, including the Autopilot, and many consumers have taken the firm to court over their issues. In one event, Justin Hsu suffered serious injuries as a result of Tesla’s Model S and Autopilot, according to a lawsuit won by Tesla.
The Tesla CEO maintains that the company’s cars will have autonomy, which will advance technology, despite the numerous criticisms leveled at its reportedly defective driving system. A higher degree of self-driving functions, possibly degree 4 or 5, would be available to users by the time this autonomous feature for Tesla arrived in 2023, according to his guarantee.
Not just for the company’s autonomous driving systems, which are the subject of several allegations of fraud or misrepresentation of the general public, cases and complaints against Tesla continue to mount.
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The US senators have also brought up complaints that workers have against the business, including one that focused on workplace discrimination and about which the CEO has not yet issued a statement.
