Tesla. You know them as the company hailed as the poster child for electric vehicles (EVs) and sustainable innovation,  capturing constant global attention. From sleek cars to ambitious energy projects, they’ve charged forward as “THE” EV company. Yet, we all know this meteoric rise hasn’t been without its share of challenges, criticisms, and contradictions. 

For a company that’s practically synonymous with sustainable energy innovation, Tesla’s sustainability score on Karma Wallet is shockingly low—just 0/16. That’s just ‘neutral’. It’s a jaw-dropper for a brand that’s hailed as the trailblazer of sustainable innovation.

So, what gives? How can a company driving millions of miles away from fossil fuels stumble so hard on sustainability metrics? Let’s unpack the story behind the score, highlighting Tesla’s groundbreaking achievements and the glaring gaps in their eco-credentials.

The Good 

1. Sustainable Materials: Building a Cleaner Future

For Tesla, sustainability isn’t just about what you drive—it’s about what your car is made of and how it’s built. The environmental footprint of a vehicle doesn’t start when you hit the road; it begins in the factory, with the materials and processes used to create it. Tesla recognizes this and has been rethinking their approach to production.

They’re swapping out traditional options for more sustainable ones and rolling out closed-loop recycling systems to give materials like aluminum and steel a second (or third) life.

Sure, it’s not all sunshine and solar panels just yet, but these moves are part of a bigger push to shrink the environmental footprint of their cars, batteries, and solar products. And their Gigafactories—aka Tesla’s massive manufacturing hubs designed to pump out EV batteries, solar products, and cars—are raising the bar. They’re setting new benchmarks, like using 35% less energy per vehicle in Shanghai compared to Fremont. Talk about leveling up. 

2. EV Charging & Renewable Energy

Tesla’s charging network is making EV ownership way easier too. With over 50,000 Superchargers worldwide—many powered by renewable energy—they’re helping drivers skip the gas pump and go electric without the hassle. Plus, their factory in Berlin? In 2023, it ran completely on renewable energy, proving they practice what they preach.And it’s not just about cars. Tesla’s solar panels and Powerwall batteries let people power their homes with clean energy. It’s all part of their mission to make renewable energy a reality for everyone, not just a dream.

3. Waste Management & Battery Recycling

Tesla knows EV batteries aren’t perfect when it comes to the environment, but they’re trying to tackle the problem head-on. 

To put it into perspective, making just one standard 40 kWh EV battery can create nearly 3,000 kilograms of CO₂—about the same as driving a gas-powered car for over 7,500 miles.

Their battery recycling program is designed to recover key materials like cobalt, nickel, and lithium, giving these resources a second life instead of sending them to a landfill.

Sure, making EV batteries creates a lot of emissions upfront, but Tesla’s working to “close the loop.” By reusing these materials, they’re aiming to cut down on waste and shrink the overall environmental footprint of their products. It’s a step toward making EVs truly sustainable from start to finish.

The Bad 

1. Kicked Out of the S&P 500 ESG Index

Tesla getting booted from the S&P 500 ESG Index was a major reality check. The index, which ranks companies based on their environmental, social, and governance (ESG) practices, dropped Tesla in 2022 due to concerns over racial discrimination claims, poor working conditions, and a lack of clear reporting on their carbon impact.

Sure, their cars might be greener than your average gas guzzler, but these red flags tipped the scales against them.

It makes you wonder—are Tesla’s big sustainability promises the real deal, or is their glossy branding just a shiny cover for deeper problems?

2. Toxic Air Pollution

Tesla’s Fremont factory has been under fire for emitting far more air pollution than it’s legally allowed. Since 2019, the Bay Area Air Quality Management District has hit Tesla with 112 violation notices for exceeding its permitted levels. That’s like telling everyone in your neighborhood to cut back on driving while secretly hosting a massive gas-powered car rally in your backyard—it’s a bad look for a company claiming to lead the green revolution.And while Tesla’s cars do help reduce tailpipe emissions, the manufacturing process behind them paints a different picture. Producing just one EV battery can create nearly 3,000 kilograms of CO₂—about the same as driving a gas-powered car over 7,500 miles. It’s the ultimate sustainability paradox: promising to lower emissions while leaving a heavy carbon footprint in their wake.

3. Neglecting to Track Emissions

For a company that markets itself as a sustainability leader, Tesla has a surprising blind spot: tracking its own emissions. Critics have pointed out that Tesla has yet to fully disclose detailed data on its supply chain emissions or set clear benchmarks for improvement.Their last major emissions report only covered operations up to 2021, but Tesla has grown significantly since then, with new factories and expanded production. Without updated numbers, it feels like they’re using a cheat code to dodge accountability—making bold claims about sustainability without showing the full scorecard. For a company of Tesla’s size and influence, keeping emissions data current is essential to prove their green efforts are more than just marketing.

The Founder 

The Elon Musk Factor

It’s impossible to talk about Tesla without mentioning its polarizing CEO, Elon Musk. Love him or hate him, Musk has undeniably pushed EVs into the spotlight, but his political affiliations and controversial comments have thrown some serious shade over Tesla’s image.

Take his decisions to end Tesla’s remote work policies or clash with government regulators—moves that haven’t exactly screamed “progressive leader.” On top of that, his outspoken stance on labor unions and reports of questionable workplace conditions have raised eyebrows, casting doubt on Tesla’s reputation as a forward-thinking company.

From an environmental perspective, Musk’s ventures have also drawn criticism. For example, SpaceX, his aerospace company, has faced scrutiny over its significant ecological impact. Rocket launches, while advancing space exploration, produce substantial carbon emissions and disrupt fragile ecosystems.

SpaceX’s Boca Chica launch site has been linked to habitat destruction for endangered species like sea turtles and migratory birds, raising questions about the balance between innovation and environmental responsibility.

These issues extend to Tesla itself, where violations of air quality regulations at the Fremont factory we discussed earlier, have marred the company’s environmental reputation. Despite Tesla’s mission to champion sustainability, instances of noncompliance with air quality permits highlight a disconnect between its brand image and operational practices.

Musk’s ambitious vision for the future undeniably drives progress, but these controversies underline the need for greater accountability to ensure his ventures align with their stated environmental goals.

Musk’s larger-than-life persona is both a boon and a bane for Tesla, often overshadowing the company’s mission and inviting criticism that may not reflect the efforts of Tesla’s broader team.

The Big Picture of Tesla’s Sustainability

Tesla’s sustainability story is a bit of a rollercoaster. They’ve changed the game for EVs, turning what once felt like a niche market into a global movement. Their innovations in renewable energy and battery tech have helped avoid millions of tons of CO₂e, and that’s a win we can’t ignore.

But here’s the deal: for a company with claims this bold, Tesla’s sustainability efforts feel a little all over the place. Transparency issues, messy environmental practices, and social controversies don’t exactly scream “leader of the green revolution.”

That said, we can’t ignore how important Tesla’s push toward EVs is. They’ve sparked a movement, and we’re all a little closer to ditching gas-powered cars because of it. But the EV revolution is a team effort, and Tesla needs a nudge to stay on the straight and narrow.

With a Karma Wallet sustainability score of 0/16, there’s a lot of room to level up.

So, how do we make sure Tesla keeps driving us toward a truly sustainable future? Maybe it’s by asking tougher questions, holding them accountable, or just keeping the pressure on to match their ambition with real action. What do you think—can Tesla’s close the gap and live up to the hype? Let’s talk about Tesla’s sustainability in the comments.