Tesla’s racism trial in California opened Monday with a bad day for the company’s lawyers. The first witness testified that a senior Tesla in-house attorney had called him last week and let him believe he was working for the state, according to Law360 (paywall).

That same morning, Tesla’s outside counsel told the judge the N-word is a “term of respect and endearment” in the Black community. Both happened in front of Judge Peter Borkon, the one person who will decide the case.

Tesla goes on trial today over allegations that its flagship Fremont factory subjected thousands of Black workers to racial slurs, segregation, and lower pay. The case is brought by the state of California, covers more than 6,000 workers, and carries no cap on damages.

It’s the biggest of the many discrimination cases Tesla has been fighting since 2017, and the first one brought by a government agency to reach a full trial.