The Tesla factory’s massive foundry, which melts metals to form Model Y assembly parts, releases toxic fumes into the air every day, while also raising floor temperatures to as high as 100 degrees Celsius. Hazardous wastewater from the manufacturing process—containing paint, oil, and other chemicals—also flows into the city’s sewer system, in serious violation of state safety guidelines.

The environmental issues surrounding the Austin plant have never been reported before. The Wall Street Journal had to gather information from multiple sources and interview former employees to come up with the most authentic data.

The investigation found that Tesla executives were aware of the problems but sometimes opted for short-term fixes to avoid slowing production. Former employees feared losing their jobs if they spoke out about potential environmental hazards.

As leader, Musk pushes employees to act quickly and frequently complains in public that unnecessary regulations are choking the U.S. Eager to cut at least $2 trillion from the federal budget, the man is expected to try to curb environmental regulations—including those that affect his company.

Musk has been hailed as an environmental champion after pioneering the electric car industry. But across his empire, Musk’s companies have demonstrated a pattern of repeatedly flouting environmental rules.

Tesla’s Fremont, California, facility has faced multiple warnings over air pollution violations over the past five years, according to the WSJ. This year, California regulators said Tesla had violated air pollution regulations at its Fremont plant 112 times in five years, and repeatedly failed to repair or upgrade equipment that would have reduced emissions.

Musk’s rocket company, SpaceX, has also faced opposition from Florida communities concerned about the impact Starship launches would have on shorebird and turtle populations and habitat. According to Kent Gee, a physics professor at Brigham Young University who studies the impact of rockets on humans and the environment, the thrust would be roughly equal to the thrust of 160 Boeing 787s taking off from the same location at the same time.

Captain Steve Jangelis, a Delta Air Lines pilot, wrote a letter to the FAA saying the agency should consider the impact of Starship launches on fuel use and emissions. The Federal Aviation Administration has closed up to 250 nautical miles of airspace to launch and re-entry of boosters, forcing airlines to reroute flights, according to the Air Line Pilots Association.

SpaceX is now looking to increase Starship flights in South Texas, and the decision has not gone down well with residents in the area. Last year, several groups sued the FAA for misjudging Starship’s environmental impact.

Compliance with environmental regulations is often not a top priority for Tesla management, people familiar with the matter said. At the Austin plant, managers sometimes ignored workers who raised environmental concerns. Some employees feared they would be fired if they slowed production.

“Tesla has repeatedly asked me to lie to the government so that it can operate smoothly without paying for appropriate environmental controls,” according to the employee’s 2024 memo to the EPA.

On June 4, 2024, Austin Water regulators said Tesla violated the city’s permit by discharging more than 9,000 gallons of untreated wastewater into the sewer system. On August 30, 2024, officials reported five violations, including exceeding permitted emission limits for several air pollutants.

Musk moved Tesla’s headquarters from California to Austin in 2021 because he wanted to take advantage of tax incentives, lax regulatory oversight, and the general political climate. Environmental regulators in Texas—like most states—are tasked with monitoring the company’s compliance with the Clean Air Act, the Clean Water Act, and other federal laws.

Tesla sold nearly 500,000 vehicles last year. The company has ambitions to increase sales by more than 50% each year to eventually reach its goal of selling 20 million vehicles by 2030. Giga Texas is a key part of that plan, and to achieve that goal, Tesla has set a target of producing 5,000 Model Ys per week at the factory.

A series of environmental and safety issues began to emerge. The furnace burned a lot of fuel and emitted a lot of pollutants, according to former employees. When a regulator came to inspect it in early fall 2022, Tesla employees used an “elaborate trick” to hide the problems. The tests did not reflect real-world operating conditions, according to former employees.

Some environmental engineers are concerned about the six-acre evaporation pond Tesla built to hold construction wastewater. Because of the sulfuric and nitric acids, the water has begun to smell like rotten eggs. Tesla also dumped untreated water directly into the sewer system without permission from Austin Water, the city’s water utility.

Sometimes on days of heavy rain, Tesla dumped a mixture of sludge and chemicals from spills outside the plant, turning a stretch of the Colorado River into a murky brown puddle, according to documents reviewed by the WSJ. A top Tesla structural engineer repeatedly pledged to fix the sewer system by 2022, but never actually led any improvements. On September 20, Austin Water issued two notices of violation to Tesla for exceeding the pH limits in its permit.

According to: WSJ, The NY Times