In court papers filed in the New York State Supreme Court on Tuesday, Walmart Inc. pursued a lawsuit against Tesla Inc. for the latter's alleged "widespread negligence" in its solar systems.
According to Reuters, Walmart is requesting the removal of solar panels from over 240 of the retail giant's U.S. stores following fires at seven branches across the country. At this point, years of partnership between the two firms are at stake.
Inspections reportedly found out that the solar installations showed some "troubling problems" that could indicate negligence from the provider's side. This is not to mention that within nine months, at least seven fires due to the solar systems took place.
Walmart said in its lawsuit that Tesla allowed under-trained installers to put up solar energy systems on top of the former's stores. The panels and systems in question are part of Tesla's SolarCity acquisition in 2016.
According to the lawsuit, fires triggered by the faulty solar systems resulted in massive losses for the affected retail stores. Huge repairs had to be carried out and millions in merchandise were lost to the fires.
Tesla's solar business is already in a tight spot as installations on quarterly bases have declined significantly, with the electric vehicle (EV) giant already cutting its sales unit.
All Tesla-owned systems are now de-energized but Walmart wants everything removed. Industry experts said the case not only puts the partnership at stake but could also hamper the retail company's efforts in shifting to renewable energy.
On the other hand, the American retail behemoth is also expected to find a new provider in the long run as it continues to ramp up its position as one of the global companies that support eco-friendly energy sources.
Tesla has yet to release a statement regarding the lawsuit.
Meanwhile, Tesla's plan to build Gigafactory 3 in China has received a major certificate earlier this week as it seeks to establish a business environment in Shanghai that focuses on innovative works and projects.
The issuance of the company's first comprehensive acceptance certificate is a breakthrough in China's approval and inspection timing. It also gives the world a better view of how the country wants to work with firms that present innovative ideas.
Upon completion, Tesla's Gigafactory 3 is expected to help open careers for residents within the Lingang area. After the EV production plant is unveiled, it is also expected to be added to Shanghai's Free Trade Zone.
Tesla continues to struggle with some of its business arms but bullish analysts are expecting the company to recover if it succeeds with the undertakings of the Gigafactory 3.
