Walmart is suing Tesla over accusations that seven of its solar systems installed on top of stores have caught fire.
Tesla’s stock dipped more than one per cent after Walmart accused it of breach of contract, gross negligence and failure to live up to industry standards in a lawsuit filed in the state of New York.
The US retail giant is calling for Tesla to remove the solar panels from more than 240 stores on which they’re currently installed and pay damages related to the fires, going on to detail evacuations, damaged property and damaged inventory.
Walmart goes on to accuse Tesla of routinely sending out solar engineers who “lacked basic solar training and knowledge” and failing to properly ground the electrical systems.
It added that the solar panels installed by Tesla showed visible defects and that it should have repaired them before they deteriorated to the point where they caught fire.
This comes after Tesla’s chief executive Elon Musk announced on Twitter that it will now offer residential solar rooftops without a contract, allowing customers in six US states to rent a solar roof for around $50 a month.
Its solar division reported record low installation rates over its second quarter at just 29 megawatts, compared to 200 megawatts in its best quarter.