Tesla was convicted of racial discrimination but the compensation was reduced from 140 million to 15 million

Tesla was previously ordered to pay $137 million in compensation for racial discrimination, one of the heaviest penalties in similar cases. However, U.S. District Judge William Orrick in San Francisco said on Wednesday that Tesla should be held accountable for the racial discrimination incident, but the penalty was too harsh and the compensation should be reduced to $15 million.

Last October, a U.S. jury found Tesla responsible for the treatment of Owen Diaz, a former black employee who worked as an elevator operator at Tesla's Fremont, California, factory. The jury found that Diaz had been subjected to a hostile work environment because of his race.

In his 43-page ruling Wednesday, Orrick said the evidence "amply supported" the jury's finding that Tesla was legally liable. But he said the $6.9 million in compensatory damages the jury awarded Diaz were "excessive" and should be reduced to $1.5 million, while the $130 million in punitive damages were "unconstitutionally excessive" and should be reduced to $13.5 million. Orrick gave Diaz 30 days to accept the $15 million or seek a new trial on damages.