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(Adds details of the lawsuit, Tesla's solar business history and Walmart's renewable energy goals)
By Nichola Groom and Nivedita Balu
Aug. 20 (Reuters) – Walmart Inc. sued Tesla on Tuesday, accusing him of "widespread negligence" resulting in repeated fires in his solar systems and asking a court to compel Tesla to remove solar panels from 240 of its stores in the United States.
Solar energy systems installed and maintained by the electric car manufacturer were responsible for fires in seven locations. Dozens of them revealed dangerous problems, such as loose cables and "hotspots" on signs, according to court documents filed in the New York State Supreme Court.
Tesla did not respond to a request for comment.
The trial accuses Tesla of having poorly trained workers who set up poor-quality facilities and who exhibit "total incompetence or harshness, or both," court documents said.
The lawsuit is the latest blow to Tesla's troubled solar business, which it has acquired through its acquisition of SolarCity for $ 2.6 billion in 2016. Quarterly facilities have fallen more than 85% since the transaction, with Tesla reducing its sales force of solar panels and ending distribution. deal with Home Depot Inc.
The fires destroyed significant amounts of merchandise in the stores and required major repairs, totaling millions of dollars in losses, Walmart said in the lawsuit.
In addition, inspections of other Tesla-owned solar plant facilities "revealed troubling issues that were indicative of widespread negligence," the prosecution said.
By November 2018, at least seven Walmart stores, including Denton (Maryland) and Beavercreek (Ohio), were reportedly set on fire due to Tesla's solar systems, according to the lawsuit. One of the fires occurred months after powering off the system, Walmart said.
The lawsuit alleges that inadequate Tesla inspections created a risk to the safety of Walmart's customers and employees.
& # 39; MONEY PRINTER ON YOUR ROOF & # 39;
Walmart became a SolarCity customer in 2010 and, over the next six years, has equipped 244 of its storefronts with panels to enhance its environmentally friendly business image and to reduce energy costs. In the lawsuit, he asks the court to demand that Tesla remove all his systems from Walmart stores, which are now all off.
Walmart's goal is to produce 35% of its electricity from renewable energy by 2020. This retailer was a major customer of SolarCity, which quickly added residential and commercial facilities while taking on significant debt.
In the lawsuit, Walmart blamed SolarCity for "an unthinking business model that required it to install solar panel systems at random and as quickly as possible to generate profits, and contractors and sub-contractors contractors who performed the installation work were properly hired, trained and supervised. "
Under the terms of its solar energy contracts, SolarCity and Tesla were required to install, maintain and operate the panel systems in accordance with the court process.
In July, Walmart awarded Tesla 30 days to provide root cause analysis, compensate the retailer for damage to its stores, and demonstrate an overhaul of its operations, among other things. On August 15, Tesla "still had not taken reasonable steps to remedy his shortcomings," the lawsuit says.
Three days later, on August 18, Tesla CEO Elon Musk announced the revival of its solar business, which allows customers to install solar panels without a long-term contract.
"It's like having a printer of money on your roof," wrote Musk on Twitter.
Shares of the California company lost about 1.65% in prolonged trading.
The case concerns Walmart Inc. vs. Tesla Energy Operations, New York State Supreme Court, County of New York. (Report by Nivedita Balu in Bengaluru, edited by Anil D & Silva and Peter Henderson)
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