The Mercury News

Walmart sues Tesla over solar panel fires

Retailer says recent blazes all had one thing in common

- By David Yaffe-Bellany and Ivan Penn

A series of rooftop blazes at Walmart stores in recent years left the retail giant with a pressing question: What was causing all the fires?

In a lawsuit filed in New York state Supreme Court on Tuesday, Walmart proposed an explanatio­n. “The answer was obvious and startling,” the complaint said. “The stores all had Tesla solar panels installed by Tesla on their roofs.”

Walmart is suing Tesla for breach of contract, contending that at least seven rooftop fires at the retailer’s stores between 2012 and 2018 were a result of problems with solar panels installed by the company.

The complaint asserted that Tesla engaged in “widespread, systemic negligence” and “failed to abide by prudent industry practices in installing, operating and maintainin­g its solar systems.” It said the panels were installed on the roofs of hundreds of Walmarts.

Tesla representa­tives did not immediatel­y respond to a request for comment.

The panels were installed by Tesla’s solar business, which was absorbed when the electric-car maker acquired SolarCity in 2016.

“Tesla designed these systems and represente­d them as safe, reliable and an environmen­tally conscious way for Walmart to reduce its energy costs,” the company’s complaint said.

A fire in March 2018 at a Walmart store in Beavercree­k, Ohio, released “a tremendous plume of black smoke” as firefighte­rs arrived and customers evacuated, the complaint said, and the store was closed

for eight days.

“Ominously, the fire had occurred near gas lines on the store’s roof,” the lawsuit said. “By stroke of luck, the gas lines remained intact,

and catastroph­ic injuries and damages were averted.”

Since Tesla acquired SolarCity, it has aimed to offer one-stop shopping for solar technology, batteries and electric cars. Tesla ended its relationsh­ip with Home Depot, where sales teams offered solar panels

to residentia­l customers, and began offering all its products at its own retail stores or online.

The company has aimed to revamp its solar business under Sanjay Shah, the senior vice president of Tesla Energy, who helped with the growth and developmen­t at Dell and Amazon. Critics viewed the changes as a move away from the residentia­l solar business.

Tesla’s market share has continued to decline despite the changes. Last year, Tesla lost its status as the leading residentia­l solar company to Sunrun, a rival based in San Francisco.

 ?? ROZETTE RAGO — THE NEW YORK TIMES ?? Walmart contends that at least seven rooftop fires at the retailer’s stores were a result of problems with solar panels.
ROZETTE RAGO — THE NEW YORK TIMES Walmart contends that at least seven rooftop fires at the retailer’s stores were a result of problems with solar panels.

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