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Vehicles pass the Tesla Inc. assembly plant in Fremont, California, on May 11, 2020.

David Paul Morris | Bloomberg | Getty Images

The U.S. Equal Employment Opportunity Commission has sued Tesla, accusing Elon Musk’s electric car maker of violating “federal law by tolerating widespread and ongoing racial harassment of its Black employees and by subjecting some of these workers to retaliation for opposing the harassment.”

Tesla did not immediately respond to CNBC’s request for comment.

The federal agency responsible for enforcing civil rights laws against workplace discrimination announced it was filing the suit against Tesla on Thursday.

In its complaint, the EEOC alleged that non-Black offenders at Tesla “bandied slurs and epithets openly” around high-traffic work areas around or on the vehicle production lines. Allegedly, supervisors and managers witnessed the racially offensive conduct but failed or refused to intercede.

When Black workers at Tesla reported the “slurs, insults, graffiti and misconduct” to Tesla’s human resources department, employee relations teams or other managerial personnel, the agency said Tesla failed and refused to take steps to address the behavior.

Tesla was previously sued by a state civil rights agency in California over related allegations. A jury also previously ordered Tesla to pay a Black former worker, Owen Diaz, about $3.2 million in damages after finding he endured racist discrimination while working there in 2015.

Last year, a financial filing from Tesla revealed that the EEOC had issued a cause finding against the company. After that, Tesla engaged in a mandatory conciliation process with the EEOC, the filing said. The conciliation process was not successful, leading to the suit announced Thursday.

According to a statement sent to CNBC by the federal agency, the EEOC is seeking “compensatory and punitive damages, and back pay for the affected workers, as well as injunctive relief designed to reform Tesla’s employment practices to prevent such discrimination in the future.”

The lawsuit, EEOC v Tesla, Inc., Case No. 4:23-cv-04984, was filed in U.S. District Court for the Northern District of California.

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Amazon launches first Kuiper internet satellites in bid to take on Elon Musk’s Starlink

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Amazon launches first Kuiper internet satellites in bid to take on Elon Musk's Starlink

A United Launch Alliance Atlas V rocket is on the launch pad carrying Amazon’s Project Kuiper internet network satellites, which are expected to eventually rival Elon Musk’s Starlink system, at the Cape Canaveral Space Force Station in Cape Canaveral, Florida, U.S., April 9, 2025. 

Steve Nesius | Reuters

Amazon on Monday launched the first batch of its Kuiper internet satellites into space after an earlier attempt was scrubbed due to inclement weather.

A United Launch Alliance rocket carrying 27 Kuiper satellites lifted off from a launchpad at the Cape Canaveral Space Force Station in Florida shortly after 7 p.m. eastern, according to a livestream.

“We had a nice smooth countdown, beautiful weather, beautiful liftoff, and Atlas V is on its way to orbit to take those 27 Kuiper satellites, put them on their way and really start this new era in internet connectivity,” Caleb Weiss, a systems engineer at ULA, said on the livestream following the launch.

The satellites are expected to separate from the rocket roughly 280 miles above Earth’s surface, at which point Amazon will look to confirm the satellites can independently maneuver and communicate with its employees on the ground.

Six years ago Amazon unveiled its plans to build a constellation of internet-beaming satellites in low Earth orbit, called Project Kuiper. The service will compete directly with Elon Musk’s Starlink, which currently dominates the market and has 8,000 satellites in orbit.

The first Kuiper mission kicks off what will need to become a steady cadence of launches in order for Amazon to meet a deadline set by the Federal Communications Commission. The agency expects the company to have half of its total constellation, or 1,618 satellites, up in the air by July 2026.

Amazon has booked more than 80 launches to deploy dozens of satellites at a time. In addition to ULA, its launch partners include Musk’s SpaceX (parent company of Starlink), European company Arianespace and Jeff Bezos’ space exploration startup Blue Origin.

Amazon is spending as much as $10 billion to build the Kuiper network. It hopes to begin commercial service for consumers, enterprises and government later this year.

In his shareholder letter earlier this month, Amazon CEO Andy Jassy said Kuiper will require upfront investment at first, but eventually the company expects it to be “a meaningful operating income and ROIC business for us.” ROIC stands for return on invested capital.

Investors will be listening for any commentary around further capex spend on Kuiper when Amazon reports first-quarter earnings after the bell on Thursday.

WATCH: Amazon launches Project Kuiper prototypes

Amazon launches Project Kuiper prototypes to low orbit as tech giant enters satellite internet race

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Oracle engineers caused days-long software outage at U.S. hospitals

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Oracle engineers caused days-long software outage at U.S. hospitals

Larry Ellison, co-founder and executive chairman of Oracle Corp., speaks during the Oracle OpenWorld 2018 conference in San Francisco, California, U.S., on Monday, Oct. 22, 2018.

David Paul Morris | Bloomberg | Getty Images

Oracle engineers mistakenly triggered a five-day software outage at a number of Community Health Systems hospitals, causing the facilities to temporarily return to paper-based patient records.

CHS told CNBC that the outage involving Oracle Health, the company’s electronic health record (EHR) system, affected “several” hospitals, leading them to activate “downtime procedures.” Trade publication Becker’s Hospital Review reported that 45 hospitals were hit.

The outage began on April 23, after engineers conducting maintenance work mistakenly deleted critical storage connected to a key database, a CHS spokesperson said in a statement. The outage was resolved on Monday, and was not related to a cyberattack or other security incident.

CHS is based in Tennessee and includes 72 hospitals in 14 states, according to the medical system’s website.

“Despite this being a major outage, our hospitals were able to maintain services with no material impact,” the spokesperson said. “We are proud of our clinical and support teams who worked through the multi-day outage with professionalism and a commitment to delivering high-quality, safe care for patients.” 

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Oracle stock this year

Oracle didn’t immediately respond to CNBC’s request for comment.

An EHR is a digital version of a patient’s medical history that’s updated by doctors and nurses. It’s crucial software within the U.S. health-care system, and outages can cause serious disruptions to patient care. Oracle acquired EHR vendor Cerner in 2022 for $28.3 billion, becoming the second-biggest player in the market, behind Epic Systems.

Now that Oracle’s systems are back online, CHS said that the impacted hospitals are working to “re-establish full functionality and return to normal operations and procedures.”

Oracle’s CHS error comes weeks after the company’s federal electronic health record experienced a nationwide outage. Oracle has struggled with a thorny, years-long EHR rollout with the Department of Veterans Affairs, marred by patient safety concerns. The agency launched a strategic review of Cerner in 2021, before Oracle’s acquisition, and it temporarily paused deployment of the software in 2023.

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Palantir is soaring while its tech peers are sinking. Here’s why

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Palantir is soaring while its tech peers are sinking. Here's why

Alex Karp, chief executive officer of Palantir Technologies Inc., speaks during the AIPCon conference in Palo Alto, California, US, on March 13, 2025.

David Paul Morris | Bloomberg | Getty Images

Tech stocks have struggled in 2025, as recession and trade war fears sap investor appetite for riskier assets.

Palantir is the exception.

Against a volatile market backdrop, the software maker’s stock has gained 45% and is the best performer among companies valued at $5 billion or more, according to FactSet. The closest tech names are VeriSign, up 33%, Okta, up 30%, Robinhood, up 29%, and Uber, up 29%.

President Donald Trump‘s frenzy of government department overhauls is partially to thank for the pop.

“When you think about macroeconomic concerns, you as a company need to be more efficient, and this is where Palantir thrives,” said Bank of America analyst Mariana Pérez Mora.

Palantir has set itself apart in the software world for its artificial-intelligence-enabled tools, gaining recognition for its defense and software contracts with key U.S. government agencies, including the military. In the fourth quarter, its government revenues jumped 45% year-over-year to $343 million.

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Companies have faced immense volatility in 2025 as tariffs threaten to jeopardize global supply chains and halt day-to-day manufacturing operations by hiking costs. Those fears have brought the broad market index down about 7% this year, while the tech-heavy Nasdaq Composite has slumped 11%.

Tech’s megacap companies — Apple, Microsoft, Nvidia, Amazon, Alphabet, Meta and Tesla — are all down between 7% and 31% so far this year.

At the same time, the Trump administration has clamped down on government spending, giving Tesla CEO Elon Musk‘s Department of Government Efficiency freedom to slash public sector costs. Some administration officials have touted shifting dollars from consulting contracts to commercial software providers like Palantir, said William Blair analyst Louie DiPalma.

“Palantir’s business model is highly aligned with the priorities of the Trump administration in terms of increasing agility and being very quick to market,” he said.

That’s put Palantir in the league with major contractors such as Lockheed Martin and Northrop Grumman, which have outperformed in this year’s downdraft. Many companies in the space are also looking to partner with the firm and tend to flock to defense during recessionary times, DiPalma said.

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Palantir vs. the Nasdaq Composite

CEO Alex Karp has also been a vocal supporter of American innovation and the company’s central role in helping prop up what he called the “single best tech scene in the world” during an interview with CNBC earlier this year. Karp also told CNBC that the U.S. needs an “all-country effort” to compete against emerging adversaries.

But the ride for Palantir has been far from smooth, and shares have been susceptible to volatile swings. Shares sold off nearly 14% during the week that Trump first announced tariffs. Shares rocketed 22% one day in February on strong earnings.

Its inclusion in more passive and quant funds over the years and the growing attention of retail traders has added to that turbulence, DiPalma said. Last year, the company joined both the S&P and Nasdaq. Palantir trades at one of the highest price-to-earnings multiples in software and last traded at 185 times earnings over the next twelve months. That puts a steep bar on the stock.

“There really is no margin for error,” he said.

WATCH: Palantir CEO on Elon Musk & DOGE: Biggest problem in society is the ‘legitimacy of our institutions’

Palantir CEO on Elon Musk & DOGE: Biggest problem in society is the 'legitimacy of our institutions'

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