Tesla And Walmart Signal Detente After Retailer Sues Over Solar Panel Fires

Tesla and Walmart say they’re working to resolve problems with rooftop solar panel installations that caused fires at seven U.S. stores after the retail giant sued Elon Musk’s clean transportation and power company over the matter. 

“Walmart and Tesla look forward to addressing all issues and re-energizing Tesla solar installations at Walmart stores, once all parties are certain that all concerns have been addressed,” the companies said in a joint statement. 

Walmart filed a breach of contract complaint with the New York State Supreme Court on August 20, citing “years of gross negligence and failure to live up to industry standards by Tesla with respect to solar panels that Tesla designed, installed, and promised to operate and maintain safely” on the roofs of more than 240 stores. The complaint, posted by legal transparency website PlainSite, said inspections by Walmart found poor wiring, faulty cable connectors, cracked panels and shoddy maintenance practices by Tesla, leading it to depower all the installations. 

In its complaint, Walmart said flawed connectors were the cause of fires at two stores in California. While the companies are in talks, Walmart’s complaint remains on file with the court. "We are actively working towards a resolution," Walmart spokesman Randy Hargrove told Forbes.

In 2018, Tesla began a quiet campaign, dubbed “Project Titan,” to inspect and replace faulty solar panel parts, Business Insider reported Thursday.  The report indicates the project was focused on inspecting H4 connectors manufactured by Wallingford, Connecticut-based Amphenol. Tesla told Business Insider that Project Titan was “a remediation effort to limit any impact the connector may have had, even though we are not aware of any equipment manufacturer or regulator that has determined any substantial hazard exists.” 

Tesla didn’t immediately comment to Forbes on how broad the inspections are and if they involve residential installations.

Solar power has been central to Musk’s vision for the low-carbon future laid out in his “Master Plan” blog post in 2006: “the overarching purpose of Tesla Motors (and the reason I am funding the company) is to help expedite the move from a mine-and-burn hydrocarbon economy towards a solar electric economy, which I believe to be the primary, but not exclusive, sustainable solution.” 

Tesla’s $2.6 billion acquisition of Musk-backed SolarCity in late 2016 was intended to create greater efficiency and synergies with Tesla’s car and battery businesses, but the solar unit has struggled with production delays and a drop in sales. Earlier this week, Musk announced a “relaunch” and new pricing plan for Tesla Solar via Twitter to jumpstart installations, letting residents of six states rent solar power systems for as little as $50 a month.

Hedge fund short-seller David Einhorn of Greenlight Capital, no fan of Tesla or Musk, jumped into the matter today, with tweets calling for Musk to resign and a call for broader inspections. 

“If @Tesla wants to save the human species, it should pay more attention to the safety of its own customers. You shouldn’t have to be Walmart to have your dangerous solar panels fixed,” he said. 

“How many solar panels are still defective and could cause fires? @Tesla should immediately notify the people who live in and work in buildings at risk. Secret Project Titan is over the line. A recall should have happened long ago @USCPSC. @Elonmusk should resign.”

Musk has remained silent about the Walmart matter this week on his Twitter feed, choosing instead to highlight Tesla’s new solar pricing and advocating a series of nuclear explosions to warm up Mars to make it more habitable for humans. 

Shares of Tesla fell 4.8% to $211.40 on Friday amid a broad market decline sparked by U.S.-China trade tensions. The stock's 36% drop this year is the biggest among U.S. carmakers, outpacing Fiat Chrysler's 14% decline and gains of 7.8% and 15% for General Motors and Ford, respectively.