Walmart sues Tesla for fires on the roof of a solar panel



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Walmart Inc. is suing Tesla Inc. for a series of rooftop fires at several Walmart stores that, according to the retailer, were allegedly caused by Tesla solar panels.

Walmart

WMT, -1.55%

sues for breach of contract and alleges "gross negligence" on the part of Tesla

TSLA, -0.43%

Part for the fires, which, he says, all started on the roofs of several stores in California, Maryland and Ohio, equipped with Tesla solar panels.

"Asserting that solar systems that are visible, properly designed, installed, inspected and maintained do not burn spontaneously, and that multiple fires involving Tesla solar systems are only an undeniable sign of Tesla's negligence," according to the complaint. tabled Tuesday. .

Related: Tesla slips to third place for solar installations in the United States, Sunrun keeps the lead

Tesla did not immediately return a request for comment. A spokesman for Walmart said that he had "nothing more to add" beyond the complaint.

Tesla bought SolarCity Corp. in June 2016 for $ 2.6 billion. At that time, SolarCity was the largest US solar panel installer and Tesla's CEO, Elon Musk, was then president and principal shareholder of both companies. SolarCity was founded and run by two of Musk's cousins, who later left the company. Some shareholders of Tesla filed a lawsuit because of the acquisition. The trial is scheduled to take place in March 2020.

Walmart's lawyers took a look at the deal in Tuesday's complaint.

"Based on information and beliefs, when Tesla bought SolarCity to bail out the detangling company (including two of Tesla's first cousins, Elon Musk's first cousins), Tesla failed to correct SolarCity's chaotic installation practices or adopt appropriate maintenance protocols, which would have been particularly useful. important in light of poor installation practices. "

According to the complaint, the affected stores were among the more than 240 Walmart stores that had rented or licensed Tesla on the roof for the installation of solar panels.

Tesla designed the systems and touted them as "safe, reliable" and environmentally friendly solutions, allowing Walmart to reduce energy costs, depending on the rating. Tesla remains the owner of the systems and promised to maintain them, he added.

In May 2018, however, it was "clear that Tesla had breached its contractual obligations" and he had been asked to unplug the systems. Tesla has complied, according to the complaint. That was not enough to prevent another fire, this time in Yuba City, California, Walmart said in the complaint. The complaint also mentions rooftop fires before 2018.

A total of seven stores experienced fires that Walmart said were due to defective solar panels, according to the complaint, which lists thousands of dollars in repair, merchandise and other costs.

See more: The main departures of Tesla executives, in a convenient list

Earlier this week, Tesla said it would restart its solar business by offering rentals.

Tesla shares lost 1.1% during the extended session, which compounded past losses. The stock is down 32% this year, contrasting with gains of 16% and 11% for the S & P 500 index

SPX, -0.79%

and the Dow Jones Industrial Average.

DJIA, -0.66%

.

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