By Tesla Inc. has agreed to pay $1.5 million to settle a lawsuit filed by 25 California counties, alleging improper handling of hazardous waste. San Francisco District Attorney Brooke Jenkins announced the settlement late Thursday.
Protecting the Environment
Jenkins stated that while electric vehicles have environmental benefits, their manufacturing and servicing still generate harmful waste streams. The settlement will strive to prevent the contamination of precious natural resources caused by mismanagement and unlawful disposal of hazardous waste.
Allegations Against Tesla
The lawsuit, filed on Tuesday, accused Tesla of mishandling, transporting, and disposing hazardous materials, including oil, lead acid batteries, antifreeze, and diesel fuel at numerous sites across the state. There were approximately 101 sites mentioned in the complaint.
Terms of the Settlement
As part of the settlement, Tesla has been ordered to pay $1.3 million in civil penalties and $200,000 to cover the investigation costs. The investigation began in 2018. Tesla will also be required to comply with an injunction for the next five years, ensuring proper disposal of hazardous materials.
Tesla’s Financial Performance
Tesla reported earnings of $7.9 billion in the fourth quarter of last year. Despite this, their shares have seen a decline of approximately 24% year-to-date, in contrast to a 3% gain by the S&P 500.
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