11:48 AM EST, 11/25/2024 (MT Newswires) -- Tesla (TSLA) faced significant environmental violations at its Gigafactory in Austin, Texas, as the company rushed to ramp up production of the Model Y SUV, The Wall Street Journal reported Monday, citing emails between Texas regulators and the company, interviews with former employees, and a whistleblower memo sent to the Environmental Protection Agency.

The report said that problems included a malfunctioning furnace door that released toxins into the air and dangerously high temperatures for workers, as well as hazardous wastewater being released into the local sewer system. These issues violated state environmental guidelines, yet Tesla largely ignored them during the crucial ramp-up.

Tesla's Fremont, California facility has also faced repeated air pollution violations. Despite warnings from the state, Tesla has not significantly reduced these violations, with regulators issuing numerous notices of non-compliance, the report added.

Tesla management doesn't prioritize following environmental rules. The company follows a Silicon Valley mindset of moving fast and breaking things, and Musk sees regulations as a hindrance to innovation because they slow progress, people familiar with the company's officials told the media outlet.

"Tesla repeatedly asked me to lie to the government so that they could operate without paying for proper environmental controls," an environmental compliance staffer at the Austin plant alleged in a memo to the EPA that was reviewed by the Journal.

Tesla did not immediately reply to MT Newswires' request for comment.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

Price: 352.66, Change: +0.09, Percent Change: +0.03