Tesla settles $1M penalty for air quality violations at Fremont factory Published article FREMONT, CALIFORNIA - MAY 12: An aerial view of the Tesla Fremont Factory on May 12, 2020 in Fremont, California. Alameda County has ordered Tesla's CEO Elon Musk to halt production at Tesla Fremont Factory days after Musk defiantly opened up the ele Expand FREMONT, Calif. - Officials from the Bay Area Air Quality Management District said Friday that Tesla, Inc., has agreed to pay a $1 million penalty and install a solar roof project to settle air quality violations at its Fremont automobile factory. The settlement covers 33 notices of violation that the air district issued to Tesla. The notices of violation cover a range of violations, including emissions exceeding Tesla's permit limits, installing or modifying equipment without proper permits, failure to conduct required emissions testing, failure to maintain records and failure to report information to the air district in a timely manner.