Tesla Inc (TSLA)

[mick]

hmmm---$TSLA---Walmart taking Tesla to court over solar panels
Walmart (NYSE: WMT) has filed a lawsuit in a New York state court against Tesla (NASDAQ: TSLA). The suit alleges that solar panels supplied by Tesla and installed on the rooftops of seven Walmart stores caught fire. The retailer claims that Tesla has committed breach of contract and gross negligence and has not met industry standards.

For relief, it is asking Tesla to remove panels from over 240 Walmart stores. It's also requesting the company pay damages arising from the fires.

In the suit, Walmart alleges numerous and varied instances of neglect on the part of Tesla. Among other claims, it asserts that Tesla did not properly ground its installations and that some of the installed equipment was visibly defective.

Tesla made a big splash when it acquired SolarCity in 2016 for $2.6 billion. Since then, however, the business has lost market share to rival companies.

The timing of this lawsuit is not auspicious for Tesla. Only two days ago, the company's CEO, Elon Musk, tweeted that Tesla Solar, as the unit is now known, had relaunched.

Given Tesla's numerous other tribulations and missteps, the potential legal hit from this lawsuit probably won't be too severe. Still, the case has the potential to cause trouble, and investors should keep a wary eye on how it develops.

Tonight, Tesla shares are down by almost 2%; Walmart's are trading flat.