Reaching a settlement with US-based Environmental Protection Agency (EPA) over waste violation has cost electric vehicle maker Tesla $86,000.

In 2017, Tesla allowed hazardous waste to accumulate at the company's factory in Fremont, California beyond the allowed 90 days, without a permit, leaving 55-gallon containers of hazardous waste open with "no gasket or locking mechanism", The Verge reported on Monday.

According to the EPA, Tesla failed to comply with air emission standards for equipment leaks, management requirements for generators of hazardous wastes and failed to make an adequate hazardous waste determination for certain solid waste generated at the facility.

This violated the air emission standards for three leaky transmission lines that the waste moved through.

The EPA identified the violations during two "unannounced inspections" performed with the help of the California Department of Toxic Substances Control (DTSC) and the Bay Area Air Quality Management District (BAAQMD) at Tesla's Fremont factory in November and December 2017, the report said.

"In the 16 months since the EPA visit, Tesla has made great strides in its environmental programme and its ongoing compliance," the report quoted a Tesla spokesperson as saying.

Tesla had in 2018 paid a fine of $139,500 to BAAQMD for the pollution emanating from the Fremont factory.

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