Tesla falls on report of SEC probe on solar panel fire risk

Scott Olson/Getty Images News

• The SEC is reportedly investigating Tesla (NASDAQ:TSLA) due to 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 a period of several years.
• The fire risk issue has been discussed in news reports previously, but the new letter sent by the SEC is the first indication of an official probe.
• The electric vehicle maker already faces a widely-publicized federal safety probe into accidents that involve the company's driver assistant systems.
• Shares of Tesla are down 2.26% in premarket trading to $992.04.
• Sector watch: See how the analyst ratings are falling for Rivian Automotive.

Comments

[Tom Peticolas]

The SEC is corrupt. See how they are handling Crypto and insider trading.

[Krypto]

Did Tesla ever settle with Wal★Mart over all their Tesla solar panels that went bad, or did Wal★Mart not have their hands on the solar panels at all times?

[vvatcher]

Funny how no one is talking about how Honda is recalling over 700k cars because the hood could fly open driving down the freeway.
Seems like people only care about recalls or defects if they are by Tesla, and ignore much more serious and wide spread defects from the other car companies...

[martyr1777]

@vvatcher Well TSLA makes a fraction of the cars they do for starters.

But on top of that these companies have survived all their recalls because they are successful profitable companies with brand loyalty.

[Actionable Conclusion]

"failed to properly notify its shareholders and the public of fire risks associated with solar panel system defects over a period of several years."

That would explain all of those Tesla solar panel fires over the years... oh wait, there hasn't been.... never mind.

[bbeltkyle89]

@Actionable Conclusion tell that to Walmart

[Illuminati Investments]

...aaaaaannnnnnd it's already back up. Apparently SEC inquiries just as worthless as NHTSA probes.

[tmt83]

Wow looks like Tesla is back up already lol. When investing in Tesla think long term (5-10years at least). You won't regret betting on a company with so many passionate people that's innovating lightning fast!

[Alexander the Great II]

Isn't Elon still dumping shares? That is the real reason for the price drop. The rest is noise.

For the small investors out there, now is the time to pick up some TSLA!!!

Cheers.

[User 28897925]

No! TSLA is NOT down today b/c of panel fires. It's down today b/c Musk is selling billions of shares to pay his stock option tax liability. Period.

[Sermer]

I can't stand these types of headlines. Every day you see articles trying to explain why the market moved the way that it did. Usually, it wasn't anything. TSLA sold off hard last week, this was a continuation of that. If a probe we only found about today didn't cause last week's selloff, it didn't cause the dip today...

[Alexander the Great II]

@Sermer ,

you are correct.

It really is just Elon dumping 10% of his stake in the company. When Elon stops selling, price will bounce back up.

[Acculader]

@Alexander the Great II
"Just" dumping 10%. He "only" did that to pay his taxes.

[View from the cheep seats]

Short term, Elon has 7 million more shares to sell. Still on downward trajectory before bounce. TSLA is a BUY long term.

[Alexander the Great II]

@View from the cheep seats ,

you are correct. It really is Elon selling now that is putting the price down. Nothing else.

And as you said, long term TSLA is a great buy.

Cheers!!!

[Acculader]

@Alexander the Great II
>And as you said, long term TSLA is a great buy<
A long goodbye.

[View from the cheep seats]

@View from the cheep seats
After yesterday’s Elon sale, approx. 6 million shares to go

[Be kind, Be wise, Be wealthy]

Haven't we been there and done this with other issues that just end up being much of nothing? And it just creates another opportunity to buy.

[Stilldazed]

@aubiepolo

No, actually Elon and TSLA were fined before.

[martyr1777]

@Stilldazed @aubiepolo
And TSLA settled with Wal-Mart on their fires.

So a fair bit of money being lost.

[Be kind, Be wise, Be wealthy]

@Stilldazed and it did nothing to slow the company or stock down. And will not here

[Virtual Viking]

There are about a hundred possible explanations for Tesla falling, that are more plausible than this one. Chief amongst them, that people studying the entrails of a goat, and Jerome Powells used underwear, have decided that a rate hike is coming, so now is the time to go risk off.

[belz]

Do solar panels cause fires? Installed properly, PV solar panels do not cause fires. ... In the rare cases where PV modules have been implicated in house fires, the cause has been electrical arcing due to improper installation, faulty wiring or insufficient insulation.

Since 2015 the Fire Administration has recorded 155 fires caused by solar installations, with 84 being residential systems and 71 being non-residential.

Solar panels pose an extremely low fire hazard. In fact, Photon magazine has recorded no more than 1 incident per 10,000 installations. So a house equipped with properly installed solar panels will not catch fire.

Fires caused by natural gas, ICE cars and oil are so few that solar fires take the prize…sarcasm

[martyr1777]

@belz Yes but as you say, "installed properly".

I remember a report from the Wal-Mart case, who knows if its true, but it was reported that in place of a fuse a bolt was used. Yeah thinking a bolt it going to cause some of that "arcing due to improper installation."

[Rinascimento]

@belz
....just for your information; fires can happen

Any imperfection in solar cells, such as cracks, poorly soldered joints, and mismatches, lead to higher resistance and become hot spots in the long run. The long term effects of hot spots include burnt marks that degrade solar cells and backsheets and may eventually lead to fires if left unchecked.

www.bing.com/...

PS- just a retired engineer with some knowhow

[Alexander the Great II]

@martyr1777 ,

" it was reported that in place of a fuse a bolt was used. "

You mean Bolt, like Chevy Bolt which also has fire issues?

[Ruffdog]

Wow! This breaking of old news could not make TSLA look any worst!.
I think that I will sell all of my TSLA shares!

[Finding Your Retirement]

elon sells all his shares right before SEC investigation. interesting

[Hanamogera]

@Finding Your Retirement He's selling before the Solar City verdict. That narrative makes more sense IMO.

[buyandforget]

Given how tiny solar panels are within the business, I'm amazed that the news would have this much of an impact.

[20-constantine-10]

@buyandforget If TSLA's share price any anything to do with the size of its business, its market cap would be one tenth of its current valuation.

[Ruffdog]

@buyandforget But the liability to TSLA stockholder could be in the billions if not trillions!

[Cash Flow Seeker]

@buyandforget Tesla bulls shouldn't be able to have it both ways. You justify the sky high valuation stating Tesla is "an energy company".

Then when potential damaging news on the (failing) solar panel business emerges you say "Well that is just a tiny part of the business."

You are right, it is tiny and Tesla's valuation is completely off in part because the solar business is so overvalued.

[Legacy Legends, LLC]

BUY

[Alexander the Great II]

@Legacy Legends, LLC ,

YES BUY BUY BUY!!!

[Illuminati Investments]

@Legacy Legends, LLC Tell it to Elon, he's the one selling...

[Legacy Legends, LLC]

@Illuminati Investments

He's not allowed to pay his bills or take profit or spend his money well earned?

[uptick_rule_now]

Someone in commerce or trade commission also needs to inertia faulty tesla products in every sector

[Ruffdog]

@uptick_rule_now Yes, Elon is putting profits ahead of safety, sell!

[joeZen]

@uptick_rule_now Please do a reread before posting ANOTHER useless comment. You must have meant initiate but misssspelled.

[MySami]

The SEC is made up of incompetent recent college grads with over $150,000 in student loan debts to be repaid.

[ItsAllBS]

Don't worry the "guru of WS" Cathie Wood will buy more and sell lower. I have said it before ARKK is dependent on TSLA..It's literally a fire sale.

[Ruffdog]

@ItsAllBS Cathie and I bought the dip this AM! Thank you!