Billionaire Elon Musk-led Tesla’s (TSLA) gigafactory at Austin, Texas continues to pollute the environment, a Wall Street Journal report says. Despite several warnings and letters from the EPA (Environmental Protection Agency) Tesla allegedly continues to make temporary fixes in the 10-million-square-foot plant in Austin and bypass regulations. Let’s learn more about the issues.
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Environmental Protection vs. Tesla’s Progress
As per documents and memos dating back to 2022, viewed by the WSJ, Tesla’s Austin factory continues to bypass EPA norms for the sake of progress. The plant has a huge target of manufacturing 5,000 units of Tesla’s Model Y SUVs per week. Obviously, this means tons of emissions and water sewage discharge. The crux of the matter is that Tesla’s top brass continues to pursue growth at the cost of violating environmental rules.
Tesla’s massive casting furnace, which runs at nearly 1,200 degrees to mold metals, reportedly spews hazardous toxins in the air and raises factory floor temperatures to as much as 100 degrees. Additionally, the water that is discharged into the Austin sewer system contains hazardous chemicals from production, including oil, paint, and other chemicals, without being treated as per the required norms and violating the state’s guidelines.
As per memos and whistleblower letters to the EPA, employees were afraid to confront the management about environmental hazards due to the risk of losing their jobs. The report also refers to several letters between the EPA and Tesla where warnings for violation of air and water pollution were given.
According to records, Tesla’s Fremont, California plant received more air pollution warnings in the past five years than any other company in the state. Tesla has failed to fix its equipment that is polluting the air and water and remains in violation of state norms. The Fremont plant is said to have violated air pollution limits 112 times in the past five years. In fact, the regulator has issued 75 more notices to the company since the abatement order from the Bay Area Air Quality Management District was filed.
The report only states how some of the companies with gigantic ambitions can cause the very issues that they set out to resolve. In Tesla’s case, the electric vehicle (EV) maker intends to solve the challenge of growing carbonization across the globe, while it continues to pollute the air and water systems. Only time will tell, if and when the goals of both the company and the environment regulators will align.
Is Tesla Stock a Buy, Hold, or Sell?
Tesla shares have surged rapidly during the post-election period, causing an alarm among analysts about its high valuations. On TipRanks, TSLA stock currently has a Hold consensus rating based on 11 Buys, 14 Holds, and nine Sell ratings. Also, the average Tesla price target of $233.67 implies 29.8% upside potential from current levels. Year-to-date, TSLA shares have gained nearly 34%.
