Wastewater discharge from Elon Musk-led Tesla Inc.‘s (NASDAQ:TSLA) Texas Lithium refinery reportedly contains toxic metals despite securing a discharge approval and compliance from the Texas Commission on Environmental Quality (TCEQ).
Arsenic, Carcinogens In Wastewater
On Tuesday, Electrek reported that the Nueces County Drainage District No. 2, which is responsible for managing the wastewater released by the refinery, released a cease-and-desist letter after independent lab testing conducted by Eurofins Environment Testing found traces of hexavalent chromium, which is a known carcinogen, alongside traces of arsenic and elevated levels of lithium. The ditch receives over 23,1000 gallons of water daily.
Tesla, Nueces County and Eurofins didn’t immediately respond to Benzinga‘s request for comment.
Lab testing found 0.0104 mg/L of Hexavalent Chromium, which is the same substance from the famed Erin Brokovich case, the report said, while over 0.0025 mg/L of Arsenic was also detected. Notably, the report says that the TCEQ-issued permit contained neither substance, as the February 2026 investigation did not check for heavy metals, the report said.
The discharged water from the facility flows through the drainage ditch into Petronila Creek and into Baffin Bay, which is a longtime fishing destination, the report said.
Musk had earlier hailed the facility as being “very clean” as Tesla shared that the facility, a first-of-its-kind in the U.S., was environmentally-friendly and less expensive to run. The automaker also shared that the facility would help create jobs in the region.
Environment Group Opposes SpaceX IPO
Meanwhile, Texas-based environmental rights group The South Texas Environmental Justice Network will be holding protests outside SpaceX‘s HQ in Starbase, Texas, citing environmental concerns, as it also lobbied the New York Comptroller’s office to not invest in the upcoming IPO.
On the other hand, SpaceX-owned artificial intelligence startup xAI also faces legal trouble in the form of a federal lawsuit filed by the National Association for the Advancement of Colored People, which had earlier alleged xAI’s Memphis datacenter disproportionately impacted the African American community in the city.
According to Benzinga Edge Rankings, Tesla offers satisfactory Momentum, but poor Value. It provides a favorable price trend in the Long term.
Price Action: TSLA declined 0.76% to $389.50 during Pre-market trading on Wednesday.
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