Walmart is alleging in a lawsuit that Tesla solar panels caused fires on the roofs of seven Walmart stores, and is accusing Tesla of breach of contract, gross negligence and failure to comply with industry standards.
The fires destroyed significant amounts of store merchandise and required substantial repairs, totaling hundreds of thousands of dollars in out-of-pocket losses, according to a lawsuit filed in a New York court on Tuesday.
As of November 2018, no fewer than seven Walmart stores, including those in Denton, Maryland, and Beavercreek, Ohio, had experienced fires due to Tesla’s solar systems, according to the lawsuit.
Walmart said in the court filing, “This is a breach of contract action arising from years of gross negligence and failure to live up to industry standards by Tesla with respect to solar panels that Tesla designed, installed and promised to operate and maintain safely on the roofs of hundreds of Walmart stores.”
The world’s largest retailer started using solar panels made by SolarCity, owned by Tesla, in 2010 and the roofs of around 240 of its stores were fitted with solar panels made by the company.
Tesla paid $2.6bn in 2016 to buy SolarCity, a sales and installation company founded by two cousins of the Tesla CEO Elon Musk.
SolarCity had been a successful solar installer in the prior decade, its stock was plummeting, and debt had ballooned to $3.4 billion before the deal closed.
In an investor presentation meant to drum up support for the acquisition, Musk showed off what appeared to be sleek, glass solar roof tiles. Rather than bulky panels, they looked like premium shingles. The solar roof tiles are still not widely distributed or mass-manufactured.
