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April 28, 2021 10:30 AM, EDT

Tesla Accused by EPA of Auto-Coating Emissions Reporting Failure

A Tesla vehicle sits on a car hauler in Fremont, Calif., in September 2020. (David Paul Morris/Bloomberg News) A Tesla vehicle sits on a car hauler in Fremont, Calif., in September 2020. (David Paul Morris/Bloomberg News)

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The U.S. Environmental Protection Agency accused Tesla Inc. this month of failing to prove it is complying with hazardous air-pollutant rules related to the surface coatings of its electric cars.

Tesla disclosed the allegations April 28 in a quarterly filing. The company said it refutes the allegations, is responding to the EPA’s information requests and doesn’t expect the matter to have a material adverse impact on its business.

The EPA’s rules aim to limit emissions from hazardous pollutant materials used in carmakers’ coating operations. The regulator also restricts emissions from volatile organic compounds used in coating activities.

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