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Exclusive: SEC probes Tesla over whistleblower claims on solar panel defects
Now The SEC Is Looking Into What Tesla Knew About The Fire Risk Of Its Solar Panels
It's the latest chapter in the long, tumultuous history that is Tesla's solar roof business.
By Adam Ismail | 41 minutes ago
Reports of fires related to Tesla-installed solar roofs from homeowners and multinational corporations are nothing new, but now the Security and Exchange Commission is stepping in. The department is reportedly investigating a complaint from whistleblower Steven Henkes, a former field quality manager at the company, that Tesla did not adequately inform shareholders of the risk of fire associated with its panels.
The U.S. Consumer Product Safety Commission — you know, the government body responsible for all those deranged memes — has launched a probe of its own that had made news back in March. But now there’s confirmation the SEC too is involved, courtesy of Reuters:
Henkes was fired from Tesla in 2020 and alleged in a lawsuit that his dismissal was due to him bringing these very safety concerns to light. While Tesla had cautioned customers that regular maintenance was required for solar panel systems to operate properly, it made no mention of the possibility of fire stemming from damaged electrical connectors.
Tesla acquired solar energy company SolarCity — a company founded by Peter and Lyndon Rive, cousins of Tesla CEO Elon Musk — in November 2016 for somewhere between $2.6 and $2.8 billion. Musk was also a chairman of SolarCity prior to the acquisition. This past summer he stood trial in Delaware under accusations from shareholders that he directed the transaction to bail out the failing energy company saddled with billions of debt and on the verge of bankruptcy. That case is still ongoing.
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It's the latest chapter in the long, tumultuous history that is Tesla's solar roof business.
By Adam Ismail | 41 minutes ago
Reports of fires related to Tesla-installed solar roofs from homeowners and multinational corporations are nothing new, but now the Security and Exchange Commission is stepping in. The department is reportedly investigating a complaint from whistleblower Steven Henkes, a former field quality manager at the company, that Tesla did not adequately inform shareholders of the risk of fire associated with its panels.
The U.S. Consumer Product Safety Commission — you know, the government body responsible for all those deranged memes — has launched a probe of its own that had made news back in March. But now there’s confirmation the SEC too is involved, courtesy of Reuters:
“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 Sept. 24 response to Henkes, declining his request to provide its records. The SEC official said the letter should not be taken as an indication by the agency that violations of law had occurred. Reuters independently confirmed the SEC letter was legitimate.
Henkes was fired from Tesla in 2020 and alleged in a lawsuit that his dismissal was due to him bringing these very safety concerns to light. While Tesla had cautioned customers that regular maintenance was required for solar panel systems to operate properly, it made no mention of the possibility of fire stemming from damaged electrical connectors.
Tesla acquired solar energy company SolarCity — a company founded by Peter and Lyndon Rive, cousins of Tesla CEO Elon Musk — in November 2016 for somewhere between $2.6 and $2.8 billion. Musk was also a chairman of SolarCity prior to the acquisition. This past summer he stood trial in Delaware under accusations from shareholders that he directed the transaction to bail out the failing energy company saddled with billions of debt and on the verge of bankruptcy. That case is still ongoing.
{snip}
December 6, 2021
6:43 PM EST
Last Updated 16 hours ago
Business
Exclusive: SEC probes Tesla over whistleblower claims on solar panel defects
By Hyunjoo Jin and Chris Prentice
SAN FRANCISCO/WASHINGTON, Dec 6 (Reuters) - The U.S. securities regulator has opened an investigation into Tesla Inc (TSLA.O) over a whistleblower complaint that the company failed to properly notify its shareholders and the public of fire risks associated with solar panel system defects over several years, according to a letter from the agency.
The probe raises regulatory pressure on the world's most valuable automaker, which already faces a federal safety probe into accidents involving its driver assistant systems. Concerns about fires from Tesla solar systems have been published previously, but this is the first report of investigation by the securities regulator.
The U.S. Securities and Exchange Commission disclosed the Tesla probe in response to a Freedom of Information Act request by Steven Henkes, a former Tesla field quality manager, who filed a whistleblower complaint on the solar systems in 2019 and asked the agency for information about the report.
{snip}
6:43 PM EST
Last Updated 16 hours ago
Business
Exclusive: SEC probes Tesla over whistleblower claims on solar panel defects
By Hyunjoo Jin and Chris Prentice
SAN FRANCISCO/WASHINGTON, Dec 6 (Reuters) - The U.S. securities regulator has opened an investigation into Tesla Inc (TSLA.O) over a whistleblower complaint that the company failed to properly notify its shareholders and the public of fire risks associated with solar panel system defects over several years, according to a letter from the agency.
The probe raises regulatory pressure on the world's most valuable automaker, which already faces a federal safety probe into accidents involving its driver assistant systems. Concerns about fires from Tesla solar systems have been published previously, but this is the first report of investigation by the securities regulator.
The U.S. Securities and Exchange Commission disclosed the Tesla probe in response to a Freedom of Information Act request by Steven Henkes, a former Tesla field quality manager, who filed a whistleblower complaint on the solar systems in 2019 and asked the agency for information about the report.
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