Solar Energy Systems Defect in Walmart

Retail giant Walmart filed a lawsuit on Tuesday in New York State Supreme Court. Furthermore, the firm alleges Tesla in years of gross negligence and failure to meet industry standards by Tesla.

Aside from that, at least seven Walmart stores experienced fires because of Tesla’s solar energy systems. And some of the damaged stores are in Denton, Maryland, and Beavercreek, Ohio. And according to the lawsuit of the firm, one of the fire incidents occurred months after they de-energized the system.

Then, the suit argues insufficient inspections by Tesla made a safety hazard for Walmart consumers and employees.

The Lawsuit of Walmart

In 2010, Walmart became a customer of SolarCity. And during the next six years, it fitted 244 of its store rooftops with panels in a bid to improve its image as an environmentally aware firm. And also, to reduce its energy costs. “In the lawsuit, it asks the court to force Tesla to remove all of its solar energy systems from all the retail giant’s store, which are now all de-energized.

And by 2020, the retail corporation aims of sourcing 35% of its electricity from renewables. The firm was also a significant customer for SolarCity. And it added both residential and commercial installations at a rapid clip while facing notable debt.

Also, in the lawsuit, Walmart accused SolarCity of holding “an ill-considered business model.” And it needed to install solar panels haphazardly and as fast a possible to turn a profit.

Moreover, SolarCity and Tesla will be the one to install, maintain, and operate the solar energy systems based on the terms given under solar energy contracts.

And as of Aug. 15, Tesla has not made any significant steps to resolve its breaches.

Walmart Shares

Meanwhile, shares of Walmart fell $1.76 at $112.05 during the closing session on Tuesday. And for the past 52 weeks, the retail giant’s shares traded in the range of $85.78 to $115.49.

On the other hand, the firm’s shares rode up to 22% year-to-date.