Item 3. Legal Proceedings
ITEM 3. LEGAL PROCEEDINGS
For a description of our material pending legal proceedings, please see Note 15, Commitments and Contingencies , to the consolidated financial statements included elsewhere in this Annual Report on Form 10-K.
In addition, each of the matters below is being disclosed pursuant to Item 103 of Regulation S-K because it relates to environmental regulations and aggregate civil penalties that we currently believe could potentially exceed $1 million. We believe that any proceeding that is material to our business or financial condition is likely to have potential penalties far in excess of such amount.
District attorneys in certain California counties conducted an investigation into Tesla’s waste segregation practices pursuant to Cal. Health & Saf. Code § 25100 et seq. and Cal. Civil Code § 1798.80. Tesla has implemented various remedial measures, including conducting training and audits, and enhancements to its site waste management programs, and settlement discussions are ongoing. While the outcome of this matter cannot be determined at this time, it is not currently expected to have a material adverse impact on our business.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
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PART II
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