Tesla is challenging the authority of the California agency that has been accused of racial bias in a lawsuit brought by Tesla.

The California Department of Fair Employment and Housing, according to Tesla's complaint, has established "underground regulations" that circumvent the conditions it must meet before suing firms.

Tesla Inc. sued a California civil rights office Tuesday, accusing it of filing suit without conducting necessary investigations.

A positive verdict from OAL might be used by Tesla to persuade a state judge to dismiss DFEH's complaint or require the agency to adopt new procedures.

In an April court filing, the corporation stated that it intended to submit a complaint against DFEH and requested that the action be put on hold until OAL's judgment.

DFEH's alleged malfeasance, according to Tesla's complaint, is widespread and not limited to its case against the corporation.

Tesla cited Activision Blizzard Inc. lawsuit records, which accuse DFEH of not conducting a proper sex discrimination probe.

In court documents in both cases, the DFEH stated that state law does not impose specific standards on the agency prior to suing businesses and that its investigations were thorough in both cases.

Tesla is also facing a class action lawsuit alleging race discrimination, as well as at least seven sexual harassment complaints brought by female employees.

In April, a California judge awarded $15 million to a Black former elevator operator who said he faced extreme racial harassment at the Fremont factory.

Tesla stated in a 10-page complaint to California's Office of Administrative Law that the DFEH has "hidden regulations" that evade the standards it must achieve before launching cases.

DFEH says Black workers at Tesla's Fremont, Calif., facility were harassed and discriminated against in job assignments, discipline, and compensation.

Tesla calls the lawsuit political. Tesla argued in a filing Tuesday that DFEH broke state law by suing the company without giving it a chance to settle.