Zinger Key Points
- 25 California counties take Tesla to court over alleged hazardous waste violations at its state facilities.
- Tesla's legal woes escalate with a fresh lawsuit amid ongoing regulatory challenges and shareholder tensions.
- The lawsuit surfaces as Tesla gears up to boost its U.S. battery production with a new Nevada plant.
- Get New Picks of the Market's Top Stocks
Tesla Inc TSLA is now facing a lawsuit from 25 California counties over its alleged improper handling of hazardous waste materials at its facilities across the state.
What Happened: The lawsuit, titled The People of California v. Tesla, was filed in a California state court in San Joaquin County on Tuesday, CNBC reported on Wednesday. The district attorneys representing the counties have accused Tesla of intentionally disposing of hazardous waste at unauthorized locations that were not equipped to handle such materials.
The lawsuit also alleges that Tesla failed to properly label containers of hazardous materials and neglected to train its employees in the appropriate handling of hazardous waste.
Although Tesla is now headquartered in Austin, Texas, it was previously based in Palo Alto, California, where it still maintains its engineering headquarters. The company’s first high-volume EV factory is located in Fremont, California, and is still operational.
Why It Matters: This lawsuit comes at a time when Tesla is facing several legal and regulatory challenges. Just a day before the lawsuit was filed, a Delaware court struck down Tesla CEO Elon Musk‘s $55 billion 2018 compensation plan, introducing uncertainty at a challenging time for the company. This decision was made after disgruntled Tesla shareholders initiated a lawsuit, challenging the board’s approval of Musk’s substantial pay package.
Despite these challenges, Tesla’s stock saw a boost after hours, following reports that the company plans to open a new U.S. battery plant. According to a Bloomberg report, Tesla intends to expand battery production in Nevada by opening a new facility using idle equipment from China’s Contemporary Amperex Technology Co. Ltd. (CATL).
Read Next: Warren Buffett-Backed BYD Sees Higher Profits For FY23 After Overtaking Tesla As Biggest EV Seller
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