- Walmart sued Tesla as fires from seven stores were allegedly caused by malfunctioning solar panels.
- Tesla worked diligently to review and inspect the sites; however, the retail giant may have sabotaged the process.
- It appears that Walmart was using the situation to force the electric car company to succumb to its untenable demands.
In August, Walmart (NYSE:WMT) sued Tesla (NASDAQ:TSLA) over fires caused by allegedly malfunctioning solar panels. According to the complaint, solar panels caught fire in at least seven Walmart stores. The retail giant claims that damages rack up to hundreds of thousands of dollars.
Walmart claims that the solar panel maker is liable to gross negligence, breach of contract and failure to live up to industry standards. The retail company asked the court to require Tesla to pay for damages and remove all solar panels installed in 240 Walmart sites.
It seemed that the battle between the two companies would be ugly and Tesla would succumb to the retailer’s demands. Immediately after the news of the lawsuit erupted, shares of the electric car company dropped by 2.2%. However, it would appear that Walmart shot itself in the foot. The world’s largest retailer apparently obstructed Tesla’s efforts to make things right and the scheme blew up in the retailer’s face.
Walmart’s Lawsuit ‘Voluntarily Discontinued Without Prejudice’
Most media outlets reported that Walmart and Tesla settled the complaint, which implies that the complainant is likely to receive some form of compensation. However, court documents reveal that Walmart’s lawsuit was voluntarily dropped. According to Vladimir Grinshpun, a person closely following the story, this indicates that Tesla did not pay Walmart a dime to settle the dispute.