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Tesla Settles California Hazardous Waste Lawsuit for $1.5 Million

The settlement includes third-party audits and improvements to waste management practices following allegations of unlawful toxic material dumping.

Tesla's Fremont, Calif. factory.
The Tesla Inc. assembly plant stands in this aerial photograph taken above Fremont, California, U.S., on Wednesday, Oct. 23, 2019. Tesla shares are trading above Wall Street expectations after spending most of the year languishing below analysts' average price targets. Photographer: Sam Hall/Bloomberg
An aerial view of San Francisco looking towards the Port Of San Francisco and towards downtown.
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Overview

  • Tesla has agreed to a $1.5 million settlement to resolve a lawsuit in California over improper hazardous waste management.
  • The lawsuit was filed by 25 counties in California, alleging Tesla unlawfully dumped toxic materials like batteries and solvents.
  • As part of the settlement, Tesla will appoint third-party auditors to inspect its trash containers for hazardous waste over the next five years.
  • The lawsuit follows prior violations cited by the Environmental Protection Agency in 2019, for which Tesla paid a fine and pledged improvements.
  • Tesla's CEO Elon Musk faced a separate legal challenge in Delaware over a $56 billion pay package, which was rejected by a judge.