A recent report revealed the environmental violations at Tesla Inc. (NASDAQ:TSLA)’s Austin and Freemont plants amid Elon Musk being announced as the co-head of a new Department of Government Efficiency, dubbed “DOGE,” aimed at reducing regulations.

What Happened: According to the Journal, Tesla’s Austin facility has been releasing toxic pollutants due to malfunctioning equipment, such as a giant casting furnace door that failed to close properly. This issue led to increased emissions and hazardous working conditions, The Wall Street Journal reported on Monday.

Emails obtained by the Journal from Texas regulators and interviews with former employees reveal that Tesla was aware of these problems but opted for temporary solutions to maintain production speed. Employees reportedly feared job loss if they highlighted environmental concerns.

The Journal also uncovered that Tesla’s Fremont, Calif., plant has received numerous air pollution violation warnings over the past five years, second only to a Chevron refinery in California.

See Also: Economist Slams DOGE: Tells Elon Musk-Led Initiative To ‘Do Your Legal Job Well’ Amid Super Bowl Ad Spend

As Musk assumes his new role, his stance on deregulation raises questions about the future of environmental regulations affecting his companies.

Tesla and Musk have not responded to Benzinga‘s requests for comment on these issues.

Why It Matters: The DOGE department, co-led by Musk and Vivek Ramaswamy, aims to reduce federal inefficiencies under President-elect Donald Trump. This initiative seeks high-IQ individuals to work extensively to streamline government operations and reduce bureaucracy.

A month before the announcement, Musk described the potential DOGE department as a “garbage collection of rules that don’t make sense.” His approach to efficiency has been evident in his companies, though it has sometimes led to conflicts with unions.

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Disclaimer: This content was partially produced with the help of Benzinga Neuro and was reviewed and published by Benzinga editors.

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