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Tesla agrees to pay fine, install solar project in air quality case with Bay Area Air District

The Fremont factory. (Credit: Tesla)

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Tesla has agreed to pay a $1 million fine and install a solar roof project on top of its Fremont Factory in Northern California as part of a settlement with the Bay Area Air Quality Management District (BAAQMD). Tesla was found to have 33 separate violations at the Fremont Factory, the BAAQMD said in a press release. Tesla settled with the organization on May 7th.

“The Bay Area Air Quality Management District announced today that Tesla, Inc., has agreed to pay a $1 million penalty and install a solar roof project to settle air quality violations at its manufacturing plant in Fremont,” the press release from the BAAQMD indicated. According to the report, Tesla had 33 different violations that included 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.

Interestingly, the document does not include any additional details regarding the violations. One of the most peculiar citations is for “failure to conduct required emissions testing” because Tesla’s all-electric cars do not have tailpipes, making them free of emissions.

A snapshot from a drone flyover of the Tesla Fremont factory on June 29, 2018. [Credit: DarkSoldier 360/YouTube]

Nevertheless, Tesla agreed to pay the $1 million fine and install a solar roof project that will “provide emissions-free electric power and also provide reliability in the event that grid power is unavailable due to Public Safety Power Shutoffs or other reasons.”

“This settlement requires Tesla’s compliance with Air District regulations at its Fremont facility and demonstrates the Air District’s continuing efforts to ensure strict compliance with air pollution regulations while seeking mutually beneficial solutions for the community,” Jack Broadbent, the Air District’s Executive Officer said. “As part of this settlement, Tesla has agreed to implement a community microgrid project, which leverages the company’s technological expertise in developing next generation power here in the Bay Area.”

The Solar Roof project will be approximately 160 kW and will be paired with two Powerpacks for energy storage. Tesla will fund the microgrid system, and the BAAQMD says that the project focuses on improving local air quality and public health in the Bay Area’s most heavily impacted areas. Lowering electricity costs and providing cleaner air to the community are also listed as the project’s main goals.

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Additionally, Tesla will implement a comprehensive environmental management system that will track environmental requirements. It will also ensure that managers and other high-level employees are trained on the compliance of the air quality measures and ensure Tesla’s full compliance as a company moving forward. “Tesla has already begun implementing such a system, but today’s settlement agreement will make this a legally binding and enforceable commitment,” the press release says.

BAAQMD says that all violations that led to Tesla’s investigation and the settlement have been corrected, and the Fremont Factory is once again fully compliant. BAAQMD will use the $1 million fine to improve air quality in the Bay Area.

Tesla is one of the most environmentally friendly companies in the world. Because of the automaker’s pledge to creating all-electric, sustainable, and Earth-friendly powertrains, over 16.4 million tons of CO2 have been saved by Tesla vehicles in the United States, according to the company’s website.

The press release entailing the fine and solar roof project from BAAQMD is available below.

settle_tesla_210507_2021_007 pdf by Joey Klender on Scribd

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Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Elon Musk and Tesla AI Director share insights after empty driver seat Robotaxi rides

The executives’ unoccupied tests hint at the rapid progress of Tesla’s unsupervised Robotaxi efforts.

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Ashok Elluswamy

Tesla CEO Elon Musk and AI Director Ashok Elluswamy celebrated Christmas Eve by sharing personal experiences with Robotaxi vehicles that had no safety monitor or occupant in the driver’s seat. Musk described the system’s “perfect driving” around Austin, while Elluswamy posted video from the back seat, calling it “an amazing experience.”

The executives’ unoccupied tests hint at the rapid progress of Tesla’s unsupervised Robotaxi efforts.

Elon and Ashok’s firsthand Robotaxi insights

Prior to Musk and the Tesla AI Director’s posts, sightings of unmanned Teslas navigating public roads were widely shared on social media. One such vehicle was spotted in Austin, Texas, which Elon Musk acknowleged by stating that “Testing is underway with no occupants in the car.” 

Based on his Christmas Eve post, Musk seemed to have tested an unmanned Tesla himself. “A Tesla with no safety monitor in the car and me sitting in the passenger seat took me all around Austin on Sunday with perfect driving,” Musk wrote in his post.

Elluswamy responded with a 2-minute video showing himself in the rear of an unmanned Tesla. The video featured the vehicle’s empty front seats, as well as its smooth handling through real-world traffic. He captioned his video with the words, “It’s an amazing experience!”

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Towards Unsupervised operations

During an xAI Hackathon earlier this month, Elon Musk mentioned that Tesla owed be removing Safety Monitors from its Robotaxis in Austin in just three weeks. “Unsupervised is pretty much solved at this point. So there will be Tesla Robotaxis operating in Austin with no one in them. Not even anyone in the passenger seat in about three weeks,” he said. Musk echoed similar estimates at the 2025 Annual Shareholder Meeting and the Q3 2025 earnings call.

Considering the insights that were posted Musk and Elluswamy, it does appear that Tesla is working hard towards operating its Robotaxis with no safety monitors. This is quite impressive considering that the service was launched just earlier this year.

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Starlink passes 9 million active customers just weeks after hitting 8 million

The milestone highlights the accelerating growth of Starlink, which has now been adding over 20,000 new users per day.

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Credit: Starlink/X

SpaceX’s Starlink satellite internet service has continued its rapid global expansion, surpassing 9 million active customers just weeks after crossing the 8 million mark. 

The milestone highlights the accelerating growth of Starlink, which has now been adding over 20,000 new users per day.

9 million customers

In a post on X, SpaceX stated that Starlink now serves over 9 million active users across 155 countries, territories, and markets. The company reached 8 million customers in early November, meaning it added roughly 1 million subscribers in under seven weeks, or about 21,275 new users on average per day. 

“Starlink is connecting more than 9M active customers with high-speed internet across 155 countries, territories, and many other markets,” Starlink wrote in a post on its official X account. SpaceX President Gwynne Shotwell also celebrated the milestone on X. “A huge thank you to all of our customers and congrats to the Starlink team for such an incredible product,” she wrote. 

That growth rate reflects both rising demand for broadband in underserved regions and Starlink’s expanding satellite constellation, which now includes more than 9,000 low-Earth-orbit satellites designed to deliver high-speed, low-latency internet worldwide.

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Starlink’s momentum

Starlink’s momentum has been building up. SpaceX reported 4.6 million Starlink customers in December 2024, followed by 7 million by August 2025, and 8 million customers in November. Independent data also suggests Starlink usage is rising sharply, with Cloudflare reporting that global web traffic from Starlink users more than doubled in 2025, as noted in an Insider report.

Starlink’s momentum is increasingly tied to SpaceX’s broader financial outlook. Elon Musk has said the satellite network is “by far” the company’s largest revenue driver, and reports suggest SpaceX may be positioning itself for an initial public offering as soon as next year, with valuations estimated as high as $1.5 trillion. Musk has also suggested in the past that Starlink could have its own IPO in the future. 

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NVIDIA Director of Robotics: Tesla FSD v14 is the first AI to pass the “Physical Turing Test”

After testing FSD v14, Fan stated that his experience with FSD felt magical at first, but it soon started to feel like a routine.

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Credit: Grok Imagine

NVIDIA Director of Robotics Jim Fan has praised Tesla’s Full Self-Driving (Supervised) v14 as the first AI to pass what he described as a “Physical Turing Test.”

After testing FSD v14, Fan stated that his experience with FSD felt magical at first, but it soon started to feel like a routine. And just like smartphones today, removing it now would “actively hurt.”

Jim Fan’s hands-on FSD v14 impressions

Fan, a leading researcher in embodied AI who is currently solving Physical AI at NVIDIA and spearheading the company’s Project GR00T initiative, noted that he actually was late to the Tesla game. He was, however, one of the first to try out FSD v14

“I was very late to own a Tesla but among the earliest to try out FSD v14. It’s perhaps the first time I experience an AI that passes the Physical Turing Test: after a long day at work, you press a button, lay back, and couldn’t tell if a neural net or a human drove you home,” Fan wrote in a post on X. 

Fan added: “Despite knowing exactly how robot learning works, I still find it magical watching the steering wheel turn by itself. First it feels surreal, next it becomes routine. Then, like the smartphone, taking it away actively hurts. This is how humanity gets rewired and glued to god-like technologies.”

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The Physical Turing Test

The original Turing Test was conceived by Alan Turing in 1950, and it was aimed at determining if a machine could exhibit behavior that is equivalent to or indistinguishable from a human. By focusing on text-based conversations, the original Turing Test set a high bar for natural language processing and machine learning. 

This test has been passed by today’s large language models. However, the capability to converse in a humanlike manner is a completely different challenge from performing real-world problem-solving or physical interactions. Thus, Fan introduced the Physical Turing Test, which challenges AI systems to demonstrate intelligence through physical actions.

Based on Fan’s comments, Tesla has demonstrated these intelligent physical actions with FSD v14. Elon Musk agreed with the NVIDIA executive, stating in a post on X that with FSD v14, “you can sense the sentience maturing.” Musk also praised Tesla AI, calling it the best “real-world AI” today.

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