Walmart and Tesla Pause Solar Panel Lawsuit to Negotiate Resolution
Walmart and Tesla temporarily halt their legal battle over faulty rooftop solar panels to negotiate a potential agreement. The retail giant still keeps the lawsuit on file while both companies seek a safe and reliable path forward.
Walmart and Tesla hit pause on a heated legal battle to negotiate a resolution regarding faulty rooftop solar panel systems. Earlier this week, Walmart sues Tesla for breach of contract and gross negligence, citing seven rooftop fires caused by the solar installations. Now, both companies issue a joint statement confirming they hold the lawsuit to work out an agreement that keeps the solar systems in place.
Despite the temporary truce, Walmart keeps the complaint officially on file with a New York state court as a safety net. The retail giant originally demands Tesla remove solar panels from 244 store locations and pay for fire-related damages. Spokespeople from both sides confirm they actively work toward a resolution but refuse to share specific details about the ongoing negotiations.
The outcome of these negotiations carries significant weight for Tesla's struggling renewable energy division. Tesla's share of the solar market drops significantly since its 2016 merger with SolarCity, with the company deploying only 29 megawatts of new solar capacity in the second quarter. As CEO Elon Musk attempts to reboot the business with new rental offerings and solar roof tiles, losing a massive commercial client like Walmart poses a major financial threat.