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Elon Musk-run Tesla has agreed to pay a $275,000 penalty for violating the Clean Air Act at its electric vehicle (EV) manufacturing plant in Fremont, California.

The US Environmental Protection Agency (EPA) announced a settlement with Tesla Motors after it found Clean Air Act violations at their automobile manufacturing plant.

Under the settlement, Tesla agreed to pay a $275,000 penalty.

"Today's enforcement action against Tesla reflects EPA's continued commitment to ensure compliance with federal clean air laws," said EPA Pacific Southwest Regional Administrator, Martha Guzman.

"EPA takes seriously every company's obligation to safeguard our environment and protect our most vulnerable communities," Guzman said in a statement late on Tuesday.

The list of hazardous air pollutants, or "air toxics", includes over 180 chemicals that are known or suspected to cause cancer or other serious health effects.

Tesla's facility applied coating materials containing formaldehyde, ethylbenzene, naphthalene and xylene.

Based on several information requests to Tesla, EPA determined that the company violated federal Clean Air Act regulations.

The EPA also found that Tesla didn't perform the required monthly emissions calculations to demonstrate compliance with federal standards, and it failed to collect and keep all required records associated with the calculation of pollutant emission rate for coating operations.

In 2019, Tesla agreed to pay a $31,000 penalty for failing to comply with air emissions standards for equipment leaks, failing to comply with management requirements for generators of hazardous wastes and failing to make an adequate hazardous waste determination for certain solid waste generated at the facility.

Tesla has also had multiple fires in the paint shop of its Fremont factory.