Walmart filed a lawsuit against Tesla’s energy operations, formerly known as SolarCity, for breaching the contract between the two parties, claiming it failed to live up to industry standards in installing solar panels on the roofs of hundreds of stores, resulting in multiple fires across the country.
The well-known retail group said it had leased or licensed roofs of more than 240 stores to the energy unit operated by Tesla, to install and operate solar systems. But as of November 2018, fires broke out in at least seven stores, forcing all solar panel systems to be cut for public safety.
In a complaint filed with the New York State Court on Tuesday, Walmart said the company’s inspectors found Tesla involved in systematic and systematic negligence and did not adhere to prudent industrial practices in installing, operating and maintaining its solar systems.
Walmart also said that many of the panels installed by Tesla had defects that could be seen with the naked eye or could be easily identified with the appropriate equipment, suggesting that Tesla had inadequate inspection procedures or was not inspecting the sites at all. Retailer inspectors saw serious defects, including loose and hanging wires at several locations.
“Many of the problems were caused by a hasty and neglected approach to system installation.” Tesla, in the interest of SolarCity, has adopted an ill-conceived business model that requires them to install solar panel systems as quickly as possible for quick profits.
Tesla did not immediately address Walmart’s complaint.
Tesla acquired SolarCity for $2.6 billion in 2016. Tesla and Solar City agreed to a stock exchange where SolarCity shareholders will receive 0.11 Tesla shares for each of their SolarCity shares.
Tesla CEO Elon Musk was acquitted earlier this month by a federal court of responsibility for alleged short-term profits from the purchase of Solar City, founded by his cousins.
The case now is Walmart vs. Tesla Energy Operations, in the New York State Supreme Court.