This week Tesla admitted that it violated the federal Clean Air Act while mixing the car coating chemicals and managing the storage tanks in its Fremont, CA facility. The EPA announced that Tesla will pay $ 275,000 in penalties. To avoid future penalties, Tesla will follow EPA standards that minimize hazardous pollutants leaking from its storage tanks and from mixing chemicals used to make its car coatings. Per the EPA Toxic Pollutants Registry, car coatings include these hazardous chemicals: formaldehyde, ethylbenzene, naphthalene, and xylene. Tesla’s car coatings seem to have been the main cause of this penalty. However, if the penalty was $275 M instead of $275,000, Tesla might consider outsourcing mixing the car coatings to another company down the road in Fremont.