Tesla discloses notice from EPA alleging noncompliance with the Clean Air Act of 1963

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Tesla Inc. TSLA, -0.92% disclosed Wednesday that it received notice in April from the Environmental Protection Agency (EPA) alleging the electric vehicle company "failed to provide records demonstrating compliance" with National Emission Standards for Hazardous Air Pollutants under the Clean Air Act of 1963. In a 10-Q filing with the Securities and Exchange Commission, Tesla said the allegations are related to the Act's Surface Coating of Automobiles and Light-Duty Trucks regulations. The stock rose 0.3% in morning trading, after dropping 4.5% on Tuesday in the wake of what was seen as mixed first-quarter results. "Tesla has responded to all information requests from the EPA and refutes the allegations," the company said in a statement. "While the outcome of this matter cannot be determined at this time, it is not currently expected to have a material adverse impact on our business." In February, Tesla had disclosed that the EPA was reviewing compliance of its Fremont Factory with requirements under the Clean Air Act. The stock has shed 15.4% over the past three months, while the S&P 500 SPX, +0.13% has gained 10.8%.

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