In 2020, the Travis County Commissioners Court approved a 21-year tax rebate agreement with Tesla to entice the company to build its Gigafactory in Hornsby Bend. Under the deal, the county agreed to refund more than 70% of Tesla’s property taxes each year in exchange for local investment, which Tesla was to do in compliance with local, state, and federal laws. At the time, the agreement was celebrated as a win-win: the county would net new tax revenue, and Tesla would reap a major savings.
Five years later, the benefits of this partnership are far less clear. Tesla has emerged as a bad neighbor and an even worse employer – polluting the air and water, violating environmental regulations, and endangering workers, some of whom have suffered serious injuries or died on the job. On August 1, 2024, Victor Gomez, Sr. was electrocuted at the Gigafactory, after which OSHA fined the company nearly $50,000 for working conditions where employees used electrical equipment without hazard analysis, safety protocols, and proper protective equipment. This loss of life is serious in and of itself, but also it also reflects a deeper issue: Tesla has cultivated a workplace culture that prioritizes productivity and profit over safety and sustainability.
The company routinely conceals hazards from regulators. For example, the Gigafactory uses industrial furnaces that operate at temperatures reaching 1,200 degrees. For months, a furnace door failed to close properly, reports The Wall Street Journal, exposing workers to extreme heat and toxic air, increasing fuel consumption, and releasing higher levels of pollutants from the factory’s smokestack. When a state regulator arrived for an inspection, Tesla employees reportedly staged an “elaborate ruse” to hide the malfunction – temporarily closing the door and lowering fuel input to make conditions appear normal.
Tesla’s environmental violations follow a similar pattern. According to the Journal’s investigation, in 2022 Tesla’s Gigafactory used a 6-acre evaporation pond to contain waste from construction, chemical spills, and the paint shop – which formed a hazardous combination of substances like sulfuric and nitric acids, gave off a foul odor, and even contained a dead deer. For months, Tesla discharged this fluid into Austin’s sewer system without the proper permits or treatment. More recently, the Texas Commission on Environmental Quality cited Tesla at least five times since 2021 for violating state standards and on June 4, 2024, Austin Water notified that it had violated its permit by discharging over 9,000 gallons of untreated wastewater into our sewer system.
To restore accountability, Travis County should withhold or reduce Tesla’s 2024 tax rebate. Unlike prior fines, this action – potentially worth millions – could actually compel Tesla to follow the rules. It would also help relieve pressure on the county’s limited budget at a time when federal grants are uncertain and state law restricts local revenue options. If Tesla wants taxpayer subsidies, it must meet basic standards of safety, transparency, and public responsibility.
Amanda Marzullo is a senior counsel at the Austin Community Law Center and a Democratic candidate for Travis County commissioner, Precinct 2. Previously, she was executive director of the Texas Defender Service and interim director of the Harris County Office of Justice and Safety. She holds graduate degrees in law and criminology from the University of Pennsylvania and the University of Cambridge, where she was a Gates Scholar.
This article appears in June 13 • 2025.