Tesla has agreed to pay $1.5 million to settle a lawsuit claiming years of unauthorized disposal of hazardous waste in California.
This settlement aims to resolve claims of improper disposal and management of hazardous materials.
These range ranging from spent lead-acid batteries to automotive paint and lubricants.
District attorneys from 25 California counties filed the suit.
The lawsuit, titled The People of the State of California v. Tesla Inc., was lodged in San Joaquin County’s state court.
It charged Tesla with failing to adequately label hazardous material containers or train employees on safe handling practices.
The civil penalties amount to $1.3 million, with an additional $200,000 allocated to cover the costs of the investigation, as outlined in a press release from San Francisco District Attorney Brooke Jenkins.
The fines are a small fraction of Tesla’s reported $7.93 billion net income for the fourth quarter of 2023.
To comply with the settlement terms, Tesla is mandated to engage in a comprehensive injunction over the next five years.Â
Extra training and annual audits
This includes implementing rigorous employee training programs and hiring an external auditor to conduct annual waste audits across 10 percent of its facilities.
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The audits are designed to ensure Tesla’s adherence to proper waste disposal methods and are a direct response to past lapses in environmental compliance.
Tesla’s environmental record has been a point of contention, juxtaposing its mission to promote sustainable energy against criticisms of environmental hypocrisy.
The Political Economy Research Institute lists Tesla among its Toxic 100 air polluters, based on 2021 data.
Tesla’s CEO, Elon Musk, has faced scrutiny for personal practices, such as frequent private jet use, which contradicts the company’s sustainability ethos.
This settlement follows a previous penalty in 2022, where the EPA fined Tesla $275,000 for exceeding air toxic emission standards at its Fremont, California, facility.
