The United States Securities Market Commission (SEC) is investigating Tesla for a complaint about the fire risks of its solar panels that have not been informed to the public.
In accordance with Reuters, the investigation follows after Steve Henkes, a former Tesla manager, made the complaint a few years ago. According to Henkes, the situation is dire as both Tesla and SolarCity, the solar panel company that is part of Tesla, withheld information from both the public and their shareholders and investors.
The former manager indicated in the original complaint that Tesla only limited itself to telling users that maintenance was required on the panels on a regular basis. However, it did not report which faulty electrical connections could cause fires, in addition to their consequences in the structures where they are installed.
The Reuters report also reveals that Steven Henkes was fired from Tesla after warning of security concerns; Following the dismissal, the former employee sued the company.
However, so far the SEC has limited itself to saying that the investigation is ongoing, but that there are no conclusions on the matter. For the same reason, it is not clear whether Tesla and SolarCity really committed an illegal act, nor can it be said with certainty that the solar panels of both companies are indeed defective or their use involves greater risks.
Either way, this didn’t stop Tesla shares from falling due to the report: 6.4 percent, the biggest drop in recent months. Maybe it’s time Elon Musk tweeted something that brings the value of these stocks back to their original price (and ideally from his bathroom).