Tesla settles California hazardous-waste lawsuit

Tesla, an American multinational automotive and clean energy company, has reached a settlement agreement to pay $1.5 million in response to a civil lawsuit alleging the improper handling of hazardous waste materials at multiple facilities across California over an extended period.

In announcing the settlement, San Francisco District Attorney Brooke Jenkins emphasized in a statement, “Although electric vehicles contribute to environmental benefits, it’s crucial to recognize that the manufacturing and servicing processes of these vehicles generate various harmful waste streams.

“Today’s settlement against Tesla, Inc. serves to provide a cleaner environment for citizens throughout the state by preventing the contamination of our precious natural resources when hazardous waste is mismanaged and unlawfully disposed.”

The lawsuit, jointly filed by district attorneys representing residents from 25 California counties on Tuesday, contended that Tesla breached the state’s environmental laws. The allegations specifically revolved around improper storage, labeling, and disposal practices concerning hazardous materials generated at Tesla’s facilities.

These materials encompassed a range from spent lead-acid batteries to paints and lubricants utilized in both auto repairs and manufacturing processes. Furthermore, the company was accused of not training its employees on how to handle hazardous waste and not notifying the authorities about the hazardous waste it generated.

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Under the terms of the settlement, Tesla is mandated to pay $1.3 million in civil penalties and an additional $200,000 to cover the costs of the investigation, initiated in 2018. Furthermore, as part of the injunction, Tesla is obligated to adhere to proper disposal practices for hazardous materials for five years.

Last month, Tesla disclosed earnings amounting to $7.9 billion for the fourth quarter. Notably, having disbanded its media relations team in 2020, the company did not respond to a request for comment.

To comply with the injunction, Tesla must prove the “proper training of employees” and enlist a third party to perform annual waste audits on trash containers at ten percent of its facilities. This obligation extends for five years, involving thorough inspections of Tesla’s trash containers to ensure the proper handling of hazardous waste, as detailed in the statement from Jenkins.