Tesla shares singed after Walmart sues over solar panel fires

Tesla shares singed after Walmart sues over solar panel fires


LIZ: WE NEED TO LOOK AT TESLA SHARES. THEY ARE GETTING SINGED IN THIS FINAL HOUR OF TRADE. WALMART SMACKING ELON MUSK’S ELECTRIC EMPIRE WITH A LAWSUIT OVER ITS CLEAN ENERGY DIVISION FORMERLY KNOWN AS SOLAR CITY. WALMART IS A CUSTOMER OF TESLA’S SOLAR ROOFTOP PANELS AND SAY THOSE PANELS ATOP SEVEN OF ITS STORES CAUGHT FIRE, CAUSING MILLIONS OF DOLLARS OF QUOTE, SIGNIFICANT DAMAGE. THIS JAB TO TESLA SHARES COMING AS THE TECH GIANT LOOKS TO REINVIGORATE ITS CLEAN TECH BUSINESS, SLASHING PRICES JUST FOUR MONTHS AGO FOR ITS PANELS AND JUST TWO DAYS AFTER ANNOUNCING A NEW SOLAR PANEL RENTAL PLAN. TESLA’S STOCK RIGHT NOW IS DOWN 2.5%. IT STARTED DROPPING YESTERDAY AFTER THE BELL WHEN NEWS OF THE LAWSUIT BROKE. YOU SEE THE NEGATIVITY SPILLING OVER AND PILING UP EVEN RIGHT NOW. THE STOCK OF TESLA AT $220.08. LET’S BRING IN TO FIND OUT THE EFFECT ON BOTH COMPANIES, TECH GURU AND “WALL STREET JOURNAL” REPORTER TIM HIGGINS ALONG WITH TESLA ANALYST AND OPPENHEIMER MANAGING DIRECTOR COLIN RUSCH. TESLA AND WALMART HAVE BEEN PARTNERS FOR YEARS, IN FACT, HUNDREDS AND HUNDREDS MORE THAN, WHAT, 240 WALMART STORES HAVE THESE SOLAR PANELS ON THE ROOFS FOR A COUPLE OF YEARS NOW. WHAT DO YOU THINK IS REALLY AT WORK HERE?>>WELL, FOR TESLA, IT RAISES NEW QUESTIONS ABOUT THEIR ABILITY TO EXECUTE. THAT’S BEEN A BIG CONCERN FOR THE LAST TWO OR THREE YEARS, AS TESLA PUT ALL ITS ATTENTION ON BRINGING OUT THE MODEL 3, STRUGGLING TO BRING OUT THE COMPACT CAR, MAKING IT, SERVICING IT, DELIVERING IT, NOW YOU THROW IN THIS SOLAR PANEL ISSUE AND IT JUST HIGHLIGHTS ONE OF THE BIG PROBLEMS ELON MUSK HAS, EXECUTING. LIZ: WELL, COLIN, LET’S GET TO THAT. EXECUTING THE ACQUISITION OF SOLAR CITY IN 2016, EVERYBODY WONDERED IT WAS A LITTLE BIT EXPENSIVE, I THINK TESLA BOUGHT IT FOR THE IT FOR $2E IT FOR $2.6 BILLION AND EVERYBODY WAS QUESTIONING HOW WOULD THEY ABSORB THIS DIFFERENT BUSINESS. YES, THERE ARE SHADES OF SIMILARITIES HERE BUT THIS SOMEWHAT DIFFERENT BUSINESS WHICH WAS STILL IN ITS NASCENT STAGES. WHAT’S STILL GOING ON THAT IT’S THAT CONTROVERSIAL?>>WE DIDN’T LIKE THE ACQUISITION WHEN IT HAPPENED BUT THEY MINIMIZED THIS BUSINESS IN DRAMATIC WAYS SINCE THEY ACQUIRED IT AND ALL THESE SYSTEMS WERE PUT UP BETWEEN 2010 AND 2016. THEY HAVE BEEN GOING THROUGH LOOKS LIKE AN EXTENSIVE PROCESS TRYING TO MITIGATE THIS. I’M NOT SURE WHY IT’S ESCALATED TO THIS LEVEL OF LITIGATION AND THEY COULDN’T FIND A SOLUTION. IT DOESN’T SEEM LIKE THE ISSUES ARE PARTICULARLY COMPLICATED. I’M JUST NOT SURE WHY IT HASN’T ESCALATED UP TO TESLA. IF WE LOOK AT THIS ALL IN, WE ARE ESTIMATING ABOUT 100 MEGAWATTS WORTH OF SYSTEMS THAT ARE AT RISK HERE. TO FULLY REPLACE ALL THOSE WOULD COST ABOUT $150 MILLION. IT’S NOT A HUGE NUMBER, WE THINK, THAT WOULD IMPACT TESLA BUT IT IS A HASSLE AND CERTAINLY A HEADLINE HERE THAT’S NOT NICE. LIZ: YEAH. IT’S NOT REALLY WHAT TESLA NEEDS OR ANY COMPANY NEEDS, BUT TIM, YOU LOOK AT THAT GREEN SOLAR CITY, THOSE LITTLE TRUCKS THAT RAN AROUND INSTALLING SOLAR, THEN YOU SEE THIS, AND THOSE SOLAR PANELS ON TOP OF THE ROOFS DEFINITELY TRASHED AND TORCHED, IT JUST BRINGS TO NOTE THAT CALIFORNIA RECENTLY BECAME THE VERY FIRST STATE TO OFFICIALLY MANDATE SOLAR ON HOMES. THESE ARE NEW HOMES. IT WILL TAKE EFFECT FOR THOSE HOMES BUILT 2020 OR LATER, BUT ELON MUSK RECENTLY ANNOUNCED A STRING OF TWEETS THAT CUSTOMERS CAN NOW RENT TESLA’S RESIDENTIAL SOLAR PANELS. ARE THEY GOING TO SEE THESE PICTURES OF, YOU KNOW, THE AFTERMATH OF FIRES ON THE ROOF OF WALMART AND THINK WHY WOULD I CHOOSE THOSE?>>THAT’S THE THREAT AND THE RISK HERE. THIS MIGHT NOT HIT TESLA’S POCKETBOOK BUT THE REPUTATIONAL RISK IS QUITE SEVERE, POTENTIALLY, IF CUSTOMERS THINK THESE THINGS ARE DANGEROUS. WE HAVEN’T HEARD FROM TESLA YET. THEY HAVEN’T PUSHED BACK BUT THE CONCERN IS THIS WILL BE ANOTHER EXAMPLE THAT RAISES DOUBTS IN THE CONSUMERS’ MINDS. LIZ: DOES IT ANNOY YOU THAT AT THE MOMENT, WE HAVEN’T REALLY GOTTEN OFFICIAL COMMENT FROM TESLA ABOUT THIS LAWSUIT WHICH I CAN HOLD IN MY HAND RIGHT NOW, IT IS RATHER HEFTY, AND A LOT OF IT IS REDACTED. NOTE THAT. I HAVE BEEN LOOKING AT SOME OF THIS AND WALMART IS REALLY, REALLY UNHAPPY. THEY DID FILE THIS IN THE STATE OF NEW YORK FOR THE COMMERCIAL DIVISION, AND ELON, THE CEO, IS TWEETING RIGHT NOW I BELIEVE ABOUT NUKING MARS. DO WE HAVE THAT TWEET? I’M NOT KIDDING. YEAH. NUKE MARS. THAT WAS THE LAST HE TWEETED ON THE 16th OF AUGUST. WE ARE WAITING FOR SOME TYPE OF COMMENT. HAVE YOU HEARD ANYTHING?>>WE HAVEN’T. HONESTLY, THESE SORTS OF THING TYPICALLY TAKE TIME FOR A COMPANY TO RESPOND TO IT. THERE IS OBVIOUSLY A CONFLICT HERE, THEY HAVE BEEN TRYING NEGOTIATE BEHIND THE SCENES. I’M NOT SURE OF ALL WHAT’S GOING ON HERE. THE ONE THING I DO WANT TO NOTE IS IT’S EXTREMELY UNUSUAL FOR THESE SORTS OF FIRES TO HAPPEN, SO THERE HAS BEEN SOME SORT OF [ INAUDIBLE ] IN TERMS OF INSULATION AND MAINTENANCE HERE. THE SOLAR INDUSTRY HAS BEEN HIGHLY SAFETY CONSCIOUS GIVEN ITS NASCENT STAGES AND AT THIS POINT IT’S BECOME THE CHEAPEST SOURCE OF ENERGY ON ROOFTOPS IN A DISTRIBUTED WAY IN ABOUT 50% OF THE COUNTRY. THERE IS GOING TO BE SIGNIFICANT GROWTH FOR SOLAR AND IT’S KIND OF A SHAME TESLA IS MINIMIZING THIS BUSINESS BECAUSE IT IS A REAL MATERIAL OPPORTUNITY FOR THEM. LIZ: COLIN, TIM, THANK YOU.

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  1. when are they going to arrest Elon musk for fraud everybody knows a Elon musk is a CIA asset no different than Jeffrey Epstein he's a fraud every one of the companies that he supposedly runs is a fraudulent operation he needs to be arrested his company's need to be shut down and brought under antitrust legislation when Elon musk needs to serve time in prison for contributing to the fraud of the American people

  2. They will adapt. That's what scientists do. Stop emotion baiting. They will be fine. There will more than likely be a recall, and a fix. stop bashing with these emotions please.. This isn't CNN. Lets start being objective please. Look how this "wonderful network" uses the emotion at 00:44 to control the negativity. This is complete emotional bias for views. Disgusting in my opinion..

  3. how does the sunlight generate enough heat to cause the unit to catch fire? it has to be the electrical components fizzled out.

  4. Is FOX news becoming a gossip channel? Why not do some real news investigations like see what actually started the fires. I seen fires started from a piece of glass next to some type of combustible. Very sloppy work, are you trying to become the next CNN? Shame on you.

  5. There is not a global warming crisis. The only crisis is electric providers are raising our rates so we can't afford electricity .. Just More Corruption…

  6. Elon is a rich boy who tapped into the “green” market. That’s all. He’s no genius. Everything he has done has been a repeat of history, no new ideas

  7. Gee, cuz' anyone actually believes Tesla is anything BUT one big massive cia globalist trafficking op and ponzi/scam scheme? Really?

  8. POOR INSTALLATION…….POOR MONITORING COMPONENTS……VERY EASY TO TRACK DOWN THIS FAILURE…..WHY IS THIS NOT AN EASY PROVABLE REPORT?????

  9. Wall Street is not the only indicator of the economy. The Military Vets get most of their College Tuition fully paid. Repaying Veterans school loans. Military Vets get Tuition paid for, or mostly paid. Military Vets have 1:10 th of the average student loan debt . This makes zero sense.

  10. There are toxic elements in solar panels. As long as the glass is in tact, they're safe, if the glass is broken (or on fire), they're extremely hazardous. Panels only last 20 to 30 years, at best, and they can't be recycled. Large scale solar is, by leaps and bounds, more toxic to the environment than nuclear.

  11. Oopsie!
    Install Solar Panels over the Permian Basin Oilfield & double PROFITS!
    (it's desert, so if they burn, so what?)

  12. California also outlawed Low Odor Paint Thinner for Trades, yet the same fraction is Food Grade Charcoal Lighter Fluid used on Consumer Edibles. Prop 65 anyone?
    The BBQ Lobby Works Overtime!

  13. Tesla stock rises and falls multiple times each week in a battle of Bear propaganda versus Bull reality! This presentation is much too biased to be news — it's obviously part of the bear propaganda assault on America's leading tech company!!!

  14. I really wouldn't disallow that Walmart set those fires on purpose or if they used independent contractors for installation of panels the problem maybe there.

  15. I don’t wanna get into conspiracy theory territory but this might not be an “accident” considering the entire oil industry is on purpose losing BILLIONS of dollars shorting Tesla stock knowing they’re losing money but burning billions anyways to slow Tesla down because there’s far more money in it for them in each delay Tesla hits. This is illegal to do, but clearly the entire regulation body in the sector has completely been bought, how else could it continue to happen in the open, over and over again.

  16. BMW recalled 1.2 million cars in Europe after multiple fires, it has revived much less coverage and doom and gloom talk then this.

  17. Bye Elon! It’s just a matter of time. Rent solar? That’s the same as financing only you don’t own the product afterwards. This guy is a becoming a joke.

  18. The problem with these solar panels is that initially everyone thought DC was the way to go, so they would string the panels together in a series and wind up with DC voltages exceeding 600 volts. Now needless to say if you combine that with wiring that's exposed to the harsh environment on a rooftop for year after year especially scorching summers, those cables are going to get exceptionally hot and some will and have burst into flames.

    The other problem with this method is that if one panel gets bird poop or shade partially covering it, that same effect is copied to every other panel in the series drastically affecting the yield.

    Modern thinking is you're better off going with panels that have what's called a micro inverter on the back of each panel which converts the DC wattage into AC, this does add to the cost of course but you can avoid the 600 volt cable fire problem of series DC. The other benefit is shading one panel won't affect the yield of other panels because it's AC instead of DC and many of these micro inverters support communication offering detailed diagnostics and temperature readout where as DC series is 1 long dumb chain and you don't know which ones broken unless you get up there with a multimeter.

    With the micro inverter method you can even switch individual panels on or off remotely and only that 1 panel would be affected, you could get an alert on your smart phone that panel 23 is faulty for instance so you know the exact panel even or 'panel 23 shut down due to temperature alert' so even more safety features plus since the output voltage is AC instead of DC you can avoid the large style inverter and use more readily available AC circuit breakers instead of DC less proven technology which has only really been around the last few decades since solar went mainstream and many DC safety switches have been recalled due to fire risk, same for DC cabling actually.

    A lot of the recalled cheap DC circuit breakers and cabling came out of China.

    I suspect Solar City was using the earlier cheaper DC series method which is definitely less safe.

  19. These panels were instaled by SC long BEFORE Tesla bought them out
    Tesla is not responsible
    And
    7 fires in short time is very suspicious
    PV panels dont catch fire
    This was deliberately set on fire by Tesla and Solar haters
    Big Oil most likely

  20. did the solar panels start the fires or did a foreign military start the fires in order to weaken the stock to then take over tesla?
    Hilllary had a fire on her roof.
    Trump tower had a fire on the roof hours later.
    CA had some fires with interesting patterns.

    I don't think these fires were caused by solar panels.

  21. Elon Musk the snake oil salesman, just wait until his EV company goes bust and the suckers who bought his cars can't get them serviced or buy parts for them.

  22. Narrow minded to say ONLY 150 MILLION? What about the removal and repairing the DAMAGE Of FIRE And LOSE of business while this is being done the price is closer to 300 MILLION!
    Tim Higgins you need to go back to school!

  23. It took way more than 7 phones catching on fire before Samsung felt some heat. Before the media even said something was wrong with them. Is it just Walmart buildings catching on fire or is other companies and people having this issue.
    I don't work for either company, but I do believe renewable energy is a good ideal. So is this just an attack on solar panels or all renewable energy?

    I just want to know because I was thinking about getting solar panels on my house. So if it is more than just Walmart catching on fire, I want to hear about other companies and homeowners with solar panels causing fires.

  24. So, they install solar in a way that prevents natural cooling, causing the panels overheat, short out, and catch fire… nothing to see here i supose…

  25. The wiring problem has probably been identified and resolved by now. Hopefully they resolve the disagreements and add solar to all Walmart’s

  26. Wal-mart buys the panels but hire there own crew to install them. Sounds more like Wal-Mart neglected maintenance.

  27. Won't hit Tesla's pocketbook? This analyst is out to lunch. Anyone remember Samsung's Note X, catching fire in people's back pockets?

  28. Oh man, look at all that CO2 and PCB’s being pumped into the atmosphere from those fires. Why are the progressives all up in arms about that? Nothing to see here folks, move along…

  29. I retired from the power generation industry. Calculating the power cost to make a solar panel, vs the power recoup in service is an engineering bust out of the box. In simple terms, you are spending almost twice as much to make a product than it will pay you back in it's service life. It's even worse with wind generation. Fossil fuels always has and always will be our main source of power generation. No amount of wishful contrivance and green shenanigans will ever change that.

  30. Isnt it a coincidence that after Tesla announces that you can rent solar panels for $65 a month, that a story like this "comes to surface"? A gamechanging move by Tesla. Maybe Wal Mart corporate is setting solar panels on fire purposely all at the same time maybe to fuel FUD? Hmmm, sounds very likely to me.

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