Bay Area Air Quality Management District officials ordered Tesla Inc (NASDAQ:TSLA) to address air quality violations at its Fremont factory, accusing the company of emitting harmful compounds and toxic air contaminants without proper abatement.
The abatement order, issued on Tuesday, follows accusations made last month, according to a report from San Francisco Chronicle.
According to Philip Fine, executive officer of the Air District, Tesla’s ongoing violations at the Fremont facility pose significant risks to public health and air quality in the surrounding community.
The order mandates Tesla to hire a third-party consultant to evaluate the situation and make recommendations. Tesla must then develop an implementation plan and present it to the district’s hearing board for approval.
Upon approval, Tesla is required to implement the recommended changes to prevent harmful emissions, barring any safety exceptions.
The violations have been linked to breakdowns of the thermal oxidizer in Tesla’s paint shop, leading to unsafe emissions. Additionally, issues with other equipment have occasionally necessitated the shutdown of the abatement system, further contributing to the problem.
This isn’t the first time Tesla has faced scrutiny from the air quality management district. Since 2019, Tesla has received over 112 violation notices.
In 2018, the company paid a $140,000 fine for air pollution at the Fremont factory. The district emphasized that continued non-compliance will not be tolerated.
In February, Tesla faced a lawsuit from 25 California counties over its alleged improper handling of hazardous waste materials at its facilities across the state.
Also, a local water authority near the company’s German gigafactory accused the company of polluting local rivers, saying Tesla’s factory is discharging six times more hazardous water pollutants into the water system than its permits allow.
Tesla stock has lost more than 21% in the last 12 months. Investors can gain exposure to the stock via two ETFs. They include the Consumer Discretionary Select Sector SPDR Fund (NYSE:XLY) and Fidelity MSCI Consumer Discretionary Index ETF (NYSE:FDIS).
Price Action: TSLA shares are trading lower by 0.50% at $195.38 in premarket at last check Thursday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
Photo: Tesla Fremont plant, courtesy Tesla
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