Investigation of Tesla (NASDAQ:TSLA) Deepens

Investigation of Tesla (NASDAQ:TSLA) Deepens

Investigation of Tesla (NASDAQ:TSLA) Deepens


Just days before Tesla (NASDAQ:TSLA) defended its safety record this week, California began inspecting an incident involving a subcontractor who was hospitalized after a piece of factory equipment broke his jaw.

California’s Division of Occupational Safety and Health (Cal/OSHA)was notified last week of a serious injury sustained by a 30-year-old man at Tesla’s assembly plant. The regulator Cal/OSHA started an investigation on 12 April.

The worker “was struck by a skid carrier and was transported to the San Jose Regional Hospital with a broken jaw and laceration to the face,” a spokesperson for California’s industrial relations department, said in an e-Mail. The man was employed by Automatic Systems Inc., a company based in Kansas City, Missouri.

The incident and inspection have not been reported previously and took place before Tesla’s safety practices came under scrutiny this week.

The Center for Investigative Reporting’s Reveal published a story Monday saying Tesla failed to report serious injuries as legally required.

Last Tuesday, Cal/OSHA opened its 2nd inspection involving Tesla in 5 days. While the agency hasn’t specifically identified what spurred that probe the regulator “takes seriously reports of workplace hazards and allegations of employers’ under-reporting recordable work-related injuries and illnesses.”

In an e-Mailed statement Friday, Tesla said that it takes any injury seriously and will fully cooperate with Cal/OSHA. The upstart EV maker led by CEO Elon Musk said its injury rate and average severity of injury declined last year, even as vehicle production increased 20%.

“This injury involved a worker who had been hired by an independent contractor and was performing a procedure that had been developed by and was under the supervision of that contractor,” Tesla said in its statement. “This contractor was also responsible for reporting the injury, which they did.”

Representatives for Automatic Systems didn’t respond to multiple requests for comment.

Symbol Last Trade Date Change Open High Low Volume
NASDAQ:TSLA 292.68 20 April 2018 -7.40 295.17 299.98 292.51 3,137,853
HeffX-LTN Analysis for TSLA: Overall Short Intermediate Long
Bearish (-0.36) Bearish (-0.45) Bearish (-0.31) Bearish (-0.31)

Have a terrific weekend.

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