Tesla settles hazardous waste lawsuit with $1.5 mn in penalties

Tesla, the electric vehicle manufacturer, has reached a resolution in a legal case brought forth by district attorneys from 25 counties in California. The lawsuit accused the company of consistently mishandling hazardous waste at its facilities throughout the state.

Just two days after the complaint was filed, Tesla agreed to pay $1.3 million in civil penalties and an additional $200,000 to cover investigation costs.

As part of the settlement, Tesla is placed under a detailed injunction for five years, mandating employee training and the hiring of a third-party to conduct annual waste audits on trash containers at 10 per cent of its facilities. These audits, spanning five years, will scrutinise containers for hazardous waste.

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Lawsuit Resolution

The settlement also stipulates that Tesla will bear the expenses of these audits as future costs. The San Francisco District Attorney’s (SFDA) office highlighted the quick resolution, attributing it to the agreement being reached before the complaint was officially filed. The SFDA noted that although the complaint and the stipulated judgment were filed simultaneously, the judge’s approval was granted later.

The lawsuit, filed on January 30 in San Joaquin County Superior Court, claimed that Tesla incorrectly labelled and disposed of materials such as lead acid batteries, paints, brake fluid, aerosols, antifreeze, and more at its production and service facilities across California. The lawsuit alleged improper disposal on-site and at landfills unauthorized to accept hazardous waste.

Despite the recent legal action, the environmental investigation spanned six years, beginning in 2018 when the SFDA’s Environmental Division initiated undercover inspections of Tesla’s trash containers at car service centres. These inspections revealed the illegal disposal of hazardous automotive components. Tesla cooperated with the investigation and took steps to enhance compliance. Settlement talks had already commenced before the lawsuit was filed, according to the SFDA’s office.

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