Walmart shines light on Elon Musk’s thorny SolarCity deal in new lawsuit against Tesla.
, the Walmart suit lands at a particularly difficult time for Tesla and Musk. Specifically in regards to SolarCity, Musk was slated to be deposed earlier this month in a complaint brought by shareholders over the deal.for a factory in Buffalo, New York, that it was sharing with battery manufacturing partner Panasonic. The facility was intended to focus on solar panels but turned into a site for making parts for its Supercharger and energy products.
Walmart's suit against Tesla alleges breach of contract, gross negligence and failure to live up to industry standards. The retailer is asking Tesla to remove solar panels from over 240 store locations where they've been installed and to pay damages its says are related to fires caused by those panels.
Some of the most detrimental claims in the suit relate to employees' lack of "solar training and knowledge" and inability to identify and properly install basic equipment. According to the suit, Tesla's own inspection reports revealed "improper wire management, including abraded and hanging wires," as well as "poor grounding" and "solar panel modules that were broken or contained dangerous hotspots.
The name SolarCity shows up 46 times in the lawsuit, which alleges the company had a failed business model, stemming from a goal to speed up revenue growth at all costs. "Walmart's experience bears out Tesla, Inc.'s and Tesla's inability to turn around and bail out the solar panel operations acquired from SolarCity," the suit says.Representatives from Walmart and Tesla didn't immediately respond to requests for comment.
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