California’s civil rights regulator said it’s suing Tesla Inc for racial discrimination after finding widespread harassment of black workers at the electric carmaker’s factory near San Francisco.

The state’s department of fair employment and housing (DFEH) received complaints from hundreds of workers and “found evidence that Tesla’s Fremont factory is a racially segregated workplace where black workers are subjected to racial slurs and discriminated against in job assignments, discipline, pay and promotion, creating a hostile work environment,” Kevin Kish, the agency’s director, said on Wednesday.

The complaint in Alameda County superior court wasn’t immediately available on the court’s website...