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Tesla (TSLA.O) will engage in settlement negotiations with the U.S. Equal Employment Opportunity Commission (EEOC) regarding a lawsuit filed by the latter in 2023. The lawsuit accuses Tesla of racial harassment at its California factory. The EEOC, in documents filed with the court on Tuesday, stated that Tesla has agreed to enter into private mediation for this case, with the mediation expected to take place in March or April. The lawsuit alleges that Tesla engaged in "severe or pervasive racial harassment" against African-American employees at its Fremont factory and that the company's management retaliated unfairly against employees who raised complaints. Tesla and the EEOC previously engaged in a "mandatory mediation" in June 2023 but failed to reach a resolution.