The US Securities Regulatory Commission received reports from former Tesla employees that Tesla solar panels were defective and could cause fires. The Securities Regulatory Commission has launched an investigation.
The whistleblower was Steven Henkes, a former Tesla employee. He reported to the Securities Regulatory Commission in 2019 and was fired by Tesla Energy in August 2020. According to Henkes, Tesla fired him because he warned of a safety hazard.
Henkes used to work as a quality manager for Toyota Motor North America. In 2016, he transferred to SolarCity, the largest solar power company in the United States, as a quality engineer. After Tesla acquired SolarCity, Henkes’ responsibilities also changed and he discovered safety issues.
According to a Reuters report, Henkes told Tesla management that the entire solar system that could easily catch fire needs to be shut down, and all customers are notified and reported to regulators. His warning was not accepted, and he reported it to the supervisory authority.
He pointed out to the China Securities Regulatory Commission that Tesla failed to disclose to shareholders its “risk of liability and property loss, user injury, and fire risks before and after the acquisition.” At the same time, he also failed to notify customers that the battery connector was defective, which could cause a fire. Henkes pointed out that Tesla only indicated to customers that it needs to repair and maintain the solar panels regularly to prevent the entire system from shutting down.
Henkes sued Tesla for non-dismissal in November last year. He filed a complaint stating that more than 60,000 private users, 500 government and commercial users were affected by the incident in the United States alone, but it is temporarily unclear that Tesla’s remedial measures will be affected. How many customers are there? After Reuters published the report, Tesla’s stock price immediately fell 5.5%, and then the decline expanded to more than 6%. It saw $950.5, which was a 23% correction from the historical high of $1,229.91 on November 4th. The market value fell below US$1 trillion for the first time since October 25. Tesla’s share price decline subsequently narrowed to around 1%.
In the past few years, there have been several complaints and lawsuits about defects in Tesla’s solar energy system. Wal-Mart sued Tesla in 2019, alleging that its rooftop solar system caused 7 store fires. Tesla denied that the two parties later reached a settlement.
