SEC investigates Tesla over solar panel defects

The US securities regulator has opened an investigation into Tesla over a 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.

The upcoming investigation raises regulatory pressure on the world’s most valuable automaker, which already faces a federal safety investigation 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 US Securities and Exchange Commission disclosed the Tesla investigation in response to a Freedom of Information Act request by Steven Henkes, a former Tesla field quality manager, who filed a complaint on the solar systems in 2019 and asked the agency for information about the report.

Tesla also failed to notify its customers that defective electrical connectors could lead to fires, according to the complaint.

Tesla told consumers that it needed to conduct maintenance on the solar panel system to avoid a failure that could shut down the system.