Wastewater discharge from Tesla’s Texas Lithium refinery has been found to contain toxic metals, including arsenic and carcinogens, despite having a discharge approval and compliance from the Texas Commission on Environmental Quality (TCEQ).
Arsenic, Carcinogens in Wastewater
The Nueces County Drainage District No. 2, responsible for managing the wastewater released by the refinery, issued a cease-and-desist letter after independent lab testing by Eurofins Environment Testing detected:
- Traces of hexavalent chromium, a known carcinogen
- Traces of arsenic
- Elevated levels of lithium
The refinery releases over 23,100 gallons of water daily into the ditch, which flows into Petronila Creek and Baffin Bay, a popular fishing destination.
Investigation Findings
Lab testing revealed:
- 0.0104 mg/L of Hexavalent Chromium
- Over 0.0025 mg/L of Arsenic
Notably, the TCEQ-issued permit did not include these substances, as the February 2026 investigation did not check for heavy metals.
Environmental Concerns
Elon Musk had previously hailed the facility as “very clean” and environmentally friendly. However, the discovery of toxic metals in the wastewater has raised concerns about the facility’s impact on the environment.
Opposition to SpaceX IPO
Meanwhile, the South Texas Environmental Justice Network will hold protests outside SpaceX’s HQ in Starbase, Texas, citing environmental concerns. The group has also lobbied the New York Comptroller’s office to not invest in the upcoming IPO.
Legal Trouble for xAI
SpaceX-owned artificial intelligence startup xAI faces a federal lawsuit filed by the National Association for the Advancement of Colored People, alleging that xAI’s Memphis datacenter disproportionately impacts the African American community in the city.
Market Impact
Tesla’s stock declined 0.76% to $389.50 during pre-market trading on Wednesday. According to market rankings, Tesla offers satisfactory momentum but poor value, with a favorable price trend in the long term.