Tesla probed by SEC over whistleblower claims of solar panel defects
The SEC has opened an investigation into Tesla over claims the company failed to notify the public of fire risks linked to solar panel defects.
Concerns about fires caused by solar systems were raised by a former employee, Steven Henkes, a former Tesla field quality manager who claims he was fired in retaliation for raising safety concerns. The US’ Securities and Exchange Commission confirmed the investigation in response to a freedom of information request by Hankes, who had initially filed a complaint on the solar systems in 2019 and requested an update.
“We have confirmed with Division of Enforcement staff that the investigation from which you seek records is still active and ongoing,” the SEC said in a response to Henkes dated to the 24 September. The SEC declined his request to provide its records.
The probe amps up the pressure on Tesla, the trillion dollar company owned by celebrity entrepreneur Elon Musk, which is already facing a federal safety probe because of accidents associated with its driver assistant systems.
In the SEC complaint, Henkes said that Tesla failed to notify customers about defective electrical connectors which could lead to fires. Tesla and SolarCity, which it snapped up in 2016, did not make the public or shareholders aware of “liability and exposure to property damage, risk of injury of users, fire etc to shareholders.”
Henkes, who moved to SolarCity from Toyota as a quality engineer months before it was acquired by Tesla, claims to have identified a problem with the solar panels, but his calls to shut down the solar systems and notify customers and regulators were ignored by managers. Henkes, who launched an unfair dismissal claim against Tesla in November 2020, claims that more than 60,000 residential customers in the US and 500 government and commercial accounts were affected.
Henkes was not the first to raise issue with Tesla’s solar connectors. In 2019 Walmart reached a settlement with Tesla after launching a lawsuit over a string of store fires allegedly caused by Tesla’s roof solar system.
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