Tesla, the world famous electric vehicle maker, who also makes solar panels for homes is under investigation by a regulatory body, the Securities and Exchange Commission (SEC). A whistleblower had claimed that the company had not properly disclosed fire risks that had been associated with solar panels, according to an exclusive from Reuters.
According to a report from Forbes, Tesla shares fell on Monday by up to 5 percent after the report from Reuters. This plunge made the stock remain at about 20 percent below its close of $1,229 on November 4, which was its record closing high. Its market value on Monday was $977 billion, much below its $1.2 trillion in early November.
In an Reuters exclusive, the outlet confirmed that the SEC was probing the safety issues incident. Although there had been investigations on safety issues of the solar panels in the past, as there were fires from the solar systems manufactured by Tesla, this is the first time it is confirmed that a regulatory agency is investigating the matter.
A letter from the US SEC was made public as Steven Henkes, a former Tesla field quality manager had requested for a response under the Freedom of Information Act. In 2019, Henkes had filed a whistleblower complaint against the solar system manufacturer. He asked the SEC for information about the report that he had filed.
In a September 24 response to Henkes, the SEC declined his request to provide its records. However, it said that “the investigation from which you seek records is still active and ongoing.” The SEC official also said that the letter did not indicate that any violations of law had occurred as per the agency’s letter. Reuters said that the outlet confirmed the response.
Henkes was a former quality division manager from Toyota Motors who joined Tesla. He was fired from the company in August 2020. He said that he was terminated as he brought forth safety concerns that were being overlooked in the company.
Reuters emailed both Tesla and the SEC with questions. Tesla did not respond to the email. The SEC declined to comment on the email.
Many individuals as well as Walmart had sued Tesla Energy when the solar panels manufactured by them caught fire. Walmart reached a settlement with the company.
