Documents Reveal That California's Strict Regulations May Never Allow Tesla Plant To Reach Even Half Capacity

When Tesla CEO Elon Musk announced plans to produce 500,000 electric vehicles per year by 2018 and a million units per year by 2020, he set his young company on the most ambitious course of expansion the auto industry has ever seen. Without a clear historical precedent for Tesla’s meteoric trajectory and unconventional methods, it can be quite difficult to predict all the challenges this unique automaker might face or how it might approach them. Only one such challenge stands out as being as foreseeable as it is implacable: the environmental regulations that Tesla must navigate as it seeks to expand its Fremont, CA plant.

Because Tesla’s only factory is located in California’s densely-populated San Francisco Bay Area, the electric automaker’s manufacturing operations are subject to some of the toughest environmental regulations found anywhere in the US auto industry. The Daily Kanban has already reported on one instance of environmental permit non-compliance at Tesla’s Fremont plant, and our ongoing investigation in consultation with air quality permitting professionals reveals that Tesla’s unprecedented expansion plans will create equally unprecedented regulatory challenges.

Agent009 - 9/29/2016 5:31:52 PM

+2 Boost

And they wonder why the auto industry is moving out of California

PUGPROUD - 9/29/2016 7:29:15 PM

+2 Boost

A backroom deal will be cut with local politicians claiming more electric cars are good for the environment while lining their own pockets.

MDarringer - 9/29/2016 8:29:32 PM

+2 Boost

The DeMoncrat supermajority will gladly accept slush fund money from Elon to look the other way.

SanJoseDriver - 10/3/2016 7:20:00 PM

+1 Boost

You guys realize that plant used to produce 500,000 vehicles per year in the past right? You think California is going to give up taxes on $10B of revenue by not letting Tesla go to full-capacity?