California's Department of Fair Employment and Housing is suing Elon Musk's company Tesla over racism and harassment toward Black employees at Tesla's plant in Fremont, Calif., according to a lawsuit filed by the state this week. The company has called the lawsuit "unfair."

The lawsuit follows three years of investigation into Tesla and alleges that Black and African American employees at the company's Fremont plant are "segregated to the lowest levels."

The lawsuit describes multiple instances of racist language and drawings toward Black employees, penalizing Black employees more harshly than white employees and denying Black employees career advancement opportunities and equal pay for work similar to that of other employees.