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Tesla Hits a Roadblock As EPA Alleges Non-Compliance with Pollutant Disclosures

Tesla’s stocks have hit another roadblock this Wednesday after the Environmental Protection Agency (EPA) accused the company of failing to provide documentary proof of compliance with hazardous air pollutant rules. 

Tesla refuted the allegations made in respect of the surface coatings of its light-duty trucks and vehicles in a filing to the Securities and Exchange Commission (SEC) on Tuesday, saying it complied with all requests for information from the environmental regulator.

Investors were also not pleased with the company’s declaration this Wednesday that there was a possibility of the brand’s vehicles not attaining full self-driving capabilities. Elon Musk had earlier promoted the idea of self-driven Tesla cars as one of the company’s targets for 2021. 

It is not known if the announcement is a pathway the company is seeking to walk away from the controversy surrounding a recent accident of a Tesla vehicle in Texas, in which two occupants were killed. Police at the scene of the crash had said the vehicle was driverless, but Tesla CEO Musk said the vehicle in question did not have full driverless capability.

Tesla is down 1.02% on the day.

Technical Levels to Watch

Tesla is now testing support at the 50% Fibonacci retracement point of the C-D wave in the “W” pattern at 693.72. If this level gives way, then Tesla price activity could be on course to test the 693.75 support (61.8% Fibo retracement). 654.12, 640.6, 625.00 and 601.39 are additional price levels to the south.

On the other hand, a bounce on the current support allows the bulls to aim for 715.63 initially (38.2% Fibonacci retracement of C-D wave), with 743.70 and 784.76 forming additional targets to the north.

Tesla; Daily Chart

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