Tesla Motors, Inc.
) has been charged with an $89,000 fine for seven safety
violations with regards to one workplace incident that injured
three workers. The fine has been levied by the California
Division of Occupational Safety and Health.
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In Nov 2013, Tesla reported an incident of hot metal spill at its
Fremont factory. Failure of an aluminum casting press led
to the accident, spilling hot metal on workers and injuring three
The employees were admitted to the Santa Clara Valley Medical
Center in San Jose with second and third-degree burns. While one
was badly injured with hand, stomach, hip, lower back and ankle
burns, the other two suffered minor injuries.
However, there was no report of fire in the plant. The factory
was formerly jointly-owned by
General Motors Co.
Toyota Motor Corp.
). It was taken over by Tesla four years ago and was
transformed into a state-of-the-art production facility.
Lack of safe operating condition of the low-pressure die casting
machine caused the mishap. The safety interlock was broken when
the machine was being operated, leading to the hazardous
situation. Lack of proper training about the perils of the
operations and the absence of adequate face and eye protection
aggravated the situation.
Tesla will be appealing against the fine. To its defense, the
automaker said that it gives safety utmost importance and will
focus on ensuring that such a disastrous incident doesn't recur.
The company also terminated the operations of the low-pressure
die casting machine and decommissioned the equipment. The company
also compensated the injured workers.
Tesla currently carries a Zacks Rank #5 (Strong Sell).
) with a Zacks Rank #2 (Buy) is a better-ranked stock worth
reckoning in the same industry.