A new environmental crisis puts Tesla and Musk in a big mess

Amid increasing pressure on global companies to adhere to environmental standards, Tesla and its billionaire CEO, Elon Musk, are facing a new crisis that sheds light on a dark side of the company’s operations.

A new report has revealed that Tesla’s factory in Austin, Texas, was involved in leaking huge amounts of toxic wastewater into the city’s sewers, in addition to other environmental violations that contradict the company’s reputation as a leader in sustainability and clean energy.

These developments could mark a turning point in the career of Musk, who was previously considered an icon of green innovation, according to CNN.

As detailed in public records obtained by the Wall Street Journal, the company led by Elon Musk also allowed a huge casting furnace to spew toxins into the air after its door refused to close.

The report said that these environmental problems continued to be a problem for several months, and while Tesla’s leaders were aware of them, they forced employees to come up with short-term fixes, all in an attempt to avoid slowing down production.

The Wall Street Journal reported that this news highlights Elon Musk’s disregard for environmental regulations, after he joined President-elect Donald Trump’s team, to lead the Department of Government Efficiency (DOGE), which will be responsible for the performance of the US government.

The report accused Tesla of conflicts of interest, in light of the environmental shortcomings, and Musk, the company’s CEO, is trying to dismantle the environmental rules that his companies are currently required to adhere to.

It also represents a turning point for the billionaire, who was once seen as a pioneer in the field of renewable energy and an ally of environmental issues.

According to the Wall Street Journal, Tesla’s factory in Fremont, California, received more warnings for violations of air pollution rules than almost any other auto factory in the state.

In the past five years alone, the factory violated air pollution permits 112 times and failed to address deficiencies in equipment designed to reduce emissions.

Meanwhile, in Austin, employees were afraid to speak up about environmental concerns, citing their fear of being fired.

“Tesla repeatedly asked me to lie to the government so they could operate without paying for proper environmental controls,” an environmental compliance employee said, according to a 2024 memo obtained by the Wall Street Journal.

The EPA’s criminal enforcement division has since opened an investigation into the employee’s allegations, and while production was ramping up at the Texas plant, a massive six-acre pond of wastewater was slowly being directed into the Austin sewer system, without Tesla’s permission.

In his 2006 master plan, Musk promised to help accelerate the transition from a hydrocarbon-burning economy to a solar-electric one, which he believes is the primary, but not exclusive, sustainable solution.

All references to the plan were removed from Tesla’s website last August, the report said, highlighting the electric carmaker and its CEO’s new disregard for the environment and the rules created to protect it.