Better Health for All

Tesla's primary products, electric vehicles, contribute to better health by reducing air pollution. ZEV adoption is linked to a 3.2% drop in asthma-related emergency visits for every additional 20 ZEVs per 1,000 people and a reduction in nitrogen dioxide levels.

Tesla customers avoided nearly 32 million metric tons of CO2e in 2024. The company's core products do not have significant negative health impacts. However, Tesla's operations have major health-harming externalities. Since January 2021, its Fremont facility has allegedly emitted pollutants such as nitrogen oxides, arsenic, and cadmium, posing substantial health risks to the local community. The Bay Area Air Quality Management District has cited Tesla for numerous violations and system breakdowns. In February 2024, Tesla settled a civil case for $1.3 million in civil penalties for improper hazardous waste disposal at its facilities. Tesla has been criticized for a lack of transparency in ESG reporting, with reports indicating "hidden emissions" and "skipping proper environmental impact assessments." Furthermore, a significant "adoption gap" exists for ZEVs in low-resource zip codes, where adoption was significantly lower (e.g., 0.70 ZEVs per 1,000 people compared to 3.6 ZEVs per 1,000 people in more affluent areas), indicating substantial access barriers for vulnerable populations.

Fair Money & Economic Opportunity

Tesla's primary business is electric vehicles and energy products, not consumer financial services. Consequently, several KPIs related to traditional financial institutions are not applicable. No evidence indicates Tesla derives revenue from high-cost financial products or penalty fees. The company does not generate or manage customer finance data in the context of lending or deposit services, nor does it operate financial service access points. There is no evidence that Tesla is regulated as a lender or has faced regulatory findings for discriminatory lending practices; reported discrimination issues relate to employment. Furthermore, no financial literacy programs or debt products for consumers are evidenced. While the Tesla Foundation offers business development, loan, grant, and service programs for small businesses

, including support for EIDL and PPP loan forgiveness , the provided articles lack specific data on the percentage of underserved clients served, pricing fairness, the share of these programs in a 'loan/insurance book,' or wealth-building outcomes for these businesses.

Fair Pay & Worker Respect

Tesla's CEO-to-median employee pay ratio for the 2024 fiscal year was 0:1, with Elon Musk's total compensation reported as $0 against a median employee pay of $57,243.

However, the company has a poor record regarding worker respect and labor rights. Almost none of Tesla's global workforce is unionized or covered by collective bargaining agreements, with some sources stating all 120,000 employees worldwide lack such agreements. The company has actively resisted unionization efforts globally. Tesla has faced at least 15 substantiated labor law and human rights violations in 2023 and 2024. These include a $13,500 Cal/OSHA fine for heat protection violations in December 2024 , and OSHA citations and fines totaling $49,650 for three violations related to a worker's electrocution death in August 2024 , plus two violations for chemical hazards in 2024 . In May 2024, Tesla settled a sexual harassment lawsuit. The NLRB filed a complaint in April 2024 alleging unlawful company policies to prevent unionizing. In 2023, the NLRB found merit in charges of workplace surveillance and captive audience meetings , Cal/OSHA issued four safety violations , an NLRB judge ruled Tesla violated labor laws by preventing employees from discussing pay and working conditions , and a federal jury awarded $3.2 million to a former Black worker for a racially hostile work environment.

Fair Trade & Ethical Sourcing

In 2024, Tesla revealed that its suppliers were required to repay $746,000 (US$490,000) in recruitment fees to 6,821 workers.

The company's report also identified instances of wage withholding and excessive overtime within its supply chain. Tesla states that all its supplier contracts include binding environmental and human rights requirements.

Honest & Fair Business

Tesla incurred $7.4 million in ethics-related regulatory fines over the past three years, including a $6.08 million consumer protection violation

and a $1.3 million civil penalty for hazardous waste violations in 2024, and a $20,000 wage and hour violation in 2023. The company was removed from the S&P 500 ESG Index in 2022 due to concerns about its opaque carbon emission strategy and labor rights disputes. Tesla faces extensive controversies, including allegations of false and misleading statements regarding its Autopilot and Full Self-Driving technology, fraud allegations, and quality issues. It recalled 363,000 vehicles due to safety and FSD software concerns. Environmental criticisms include over 112 air-pollution permit violations at its Fremont facility within five years. Data privacy concerns arose from a 2023 lawsuit alleging employees shared invasive car camera videos and internal data leaks. Tesla has faced criticism for its treatment of whistleblowers, with allegations of retaliation and harassment, and the SEC closed complaints regarding potential securities law and accounting standard violations without interviewing whistleblowers. The company has been involved in two Foreign Corrupt Practices Act (FCPA) cases, resulting in penalties of $14,350,890 and $6,350,890.

Kind to Animals

Tesla transitioned to 100% vegan interiors by 2019, replacing all animal-derived leather in its vehicles.

The company confirmed it would replace animal-derived leather steering wheels in Model 3 vehicles with vegan material, and the Model Y was planned to be fully vegan upon debut. Tesla partners with von Holzhausen, using their 83% plant-based Banbū material in Model S, Model Y, and Model 3, with plans for Cybertruck and Roadster. Tesla's business model does not involve animal husbandry, captive operations, animal agriculture, or the sourcing of eggs, meat, or dairy.

No War, No Weapons

Tesla has no involvement in military contracting, controversial weapons, or small arms.

While a potential $400 million contract for armored electric vehicles with the U.S. State Department was reported, the project was paused by the Trump administration as of February 2025, and the State Department denied intentions to move forward, stating it was an estimate for gathering information. In 2018, a battery supplier for Tesla suspended business with a company mining nickel and cobalt in Cuba because Tesla cannot sell products in the U.S. containing materials from Cuba, indicating an avoidance of sales with materials from sanctioned regimes.

Planet-Friendly Business

Tesla's greenhouse gas emissions totaled over 50 million metric tons in 2023, with most emissions originating from its supply chain.

The company is committed to addressing these emissions to achieve net-zero greenhouse gas targets as soon as possible. Tesla's operations are largely powered by 100% renewable electricity. , with the Supercharger network fully powered by renewables for four consecutive years and the Gigafactory in Brandenburg also running on 100% renewable electricity. Tesla recycles 92% of battery materials in a closed-loop system , recovering 1.7 GWh worth of battery materials in 2024 , which is enough to manufacture approximately 21,000 Model Y RWD vehicles.

Respect for Cultures & Communities

Tesla aims to resolve community concerns reported through its Integrity Line within 30 days.

The company has one formal partnership with the Nambé Pueblo tribe for a store and service center on tribal land. Tesla's Global Human Rights Policy commits to respecting the UN Declaration on the Rights of Indigenous Peoples (UNDRIP) and requires suppliers to respect Free, Prior, and Informed Consent (FPIC) for raw material extraction. Its FPIC score increased from 5% to 26% in the 2024 Lead the Charge Leaderboard. In 2024, Tesla announced plans to establish no-go zones for mining activities to protect indigenous and human rights. However, Tesla has faced criticism from 14 organizations, including Indigenous Peoples and human rights groups, urging it to avoid partnering with Nornickel due to human rights violations and environmental devastation in Russia. In 2021, Tesla conducted visits to the DRC and Argentina to evaluate environmental and societal risks in its supply chain, focusing on Indigenous rights.

Safe & Smart Tech

Tesla experienced a data breach in May 2023, impacting 75,735 current and former employees, with leaked information including social security numbers and contact details

. This incident involved 100 gigabytes of confidential data and would violate GDPR . Between 2019 and 2022, Tesla employees privately shared invasive videos and images recorded by customer car cameras via an internal messaging system, leading to a class action lawsuit , . The company faces regulatory scrutiny from the Brandenburg data protection office and the Dutch watchdog regarding the GDPR violation , and a potential fine of up to €3.26 billion . Tesla is subject to GDPR, CCPA, and China's privacy laws , and while its Model 3 and Model Y received China's "Auto Privacy Protection" mark in 2024 , being the sole foreign automaker to meet these standards , these compliance gaps are significant. Tesla holds ISO/IEC 27001:2013 certification for its Information Security Management System . The company operates a bug bounty program , with researchers earning over $1.3 million at the Pwn2Own Automotive competition , including $100,000 per exploit for hacking a Tesla's modem and infotainment system . For Shanghai-made vehicles, Tesla implements user data controls such as anonymization of exterior facial information , a default setting to not collect cabin data , local processing of in-cabin data , and clear notifications regarding personal information handling .

Zero Waste & Sustainable Products

Tesla reported recycling 90% of its manufacturing waste in 2023.

The company also has a goal to achieve net-zero waste by 2025. However, Tesla faced a lawsuit from 25 California counties in January 2024 for allegedly mishandling hazardous waste at up to 101 facilities, including the Fremont manufacturing plant, by improperly disposing of materials at unpermitted landfills. Tesla settled this lawsuit for $1.5 million, which included a $1.3 million civil penalty and $200,000 for investigation costs. This follows previous penalties, including a $31,000 fine from the EPA in 2019 for hazardous waste violations at the Fremont plant, and a $275,000 penalty in 2022 for Clean Air Act violations related to painting operations.