Benzinga - by Shivani Kumaresan, Benzinga Staff Writer.
Tesla Inc. (NASDAQ:TSLA) is embroiled in legal trouble. An environmental nonprofit accuses the electric car giant, led by Elon Musk, of repeatedly breaching the federal Clean Air Act.
The lawsuit, filed by the Environmental Democracy Project, alleges that Tesla's Fremont, California, plant has been emitting harmful pollutants, including nitrogen oxides and arsenic, since January 2021, endangering nearby residents and workers.
According to a report from Reuters, the Environmental Democracy Project seeks an injunction to stop the excess pollution and civil fines of up to $121,275 per day per violation of the Clean Air Act, intensifying Tesla's legal woes.
Tesla faces increasing regulatory scrutiny over its environmental practices. The Bay Area Air Quality Management District has urged an independent hearing board to compel Tesla to curb emissions from its paint shop operations, citing frequent breakdowns in the emissions abatement system.
This lawsuit adds to Tesla's history of legal challenges. In February, the company agreed to a $1.5 million settlement for mishandling hazardous waste at multiple locations across California.
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The Environmental Democracy Project asserts its authority to file a citizen lawsuit under the Clean Air Act, citing Tesla's alleged violations of operating permit conditions for major pollution sources.
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.
The district attorneys representing the counties accused Tesla of intentionally disposing of hazardous waste at unauthorized locations that were not equipped to handle such materials.
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 pollutants into the water system than its permits allow.
Tesla stock has gained more than 6% 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 higher by 2.94% at $174.94 at the last check Tuesday.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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