220.00 -0.83 (-0.38%)
Pre-Market: 5:23AM EDT
|Bid||218.69 x 1000|
|Ask||221.13 x 2900|
|Day's Range||217.62 - 223.22|
|52 Week Range||176.99 - 379.49|
|Beta (3Y Monthly)||0.33|
|PE Ratio (TTM)||N/A|
|Earnings Date||Oct 22, 2019 - Oct 28, 2019|
|Forward Dividend & Yield||N/A (N/A)|
|1y Target Est||251.85|
The retailer claims fires broke out on seven store rooftops across the U.S. between 2012 and 2018, causing millions of dollars in damage.
(Bloomberg) -- Walmart Inc.’s lawsuit against Tesla Inc. over fires at more than a half-dozen stores threatens to undermine the automaker’s latest bid to reboot its struggling solar unit.In the complaint Tuesday, the retailer said it had leased or licensed roof space at more than 240 stores to Tesla’s energy unit, formerly known as SolarCity, to install and operate solar systems. As of November, fires had broken out atop at least seven of the stores, Walmart said.The suit marks another high-profile headache for Tesla’s solar unit, which has lost much of its market share as it repeatedly rejiggers its strategy. The complaint, filed in New York state court, accuses the company of shoddy installations and “widespread, systemic negligence.” It comes days after Tesla Chief Executive Officer Elon Musk announced a “relaunch” of the unit that once led the rooftop solar industry.“The disagreement with Walmart could spook customers that Tesla is trying to bring back,” Hugh Bromley, a New York-based analyst at BloombergNEF, said in an interview Wednesday.Tesla shares fell as much as 3.7% Wednesday, to $217.60. The company didn’t respond to requests for comment.In a July 29 letter to Walmart, a lawyer for Tesla said the company had tried to resolve the matter amicably. “My client continues to prefer a business solution to this dispute, but Walmart’s conduct has put the parties on a collision course for litigation,” the attorney for Tesla, Fred Norton, wrote in the letter, which was filed with the court.On Sunday, Musk announced that his Palo Alto, California-based company is now offering to rent solar panels to customers without long-term contracts. The move harks back to the no-money-down leases the unit popularized back when it was a standalone company.Tesla bought SolarCity Corp. for $2.6 billion in 2016, then shifted away from leases to prioritize outright sales. It also ceased door-to-door marketing, ended a partnership with Home Depot Inc. and cut jobs. The company recently shifted to offering standardized panel systems online, rather than customized arrays.Installations have fallen in the last seven of 10 quarters since Tesla bought SolarCity. Last month the company reported its fewest quarterly installations to date: 29 megawatts. It has also struggled to ramp up production of its sleek solar roof singles that Musk unveiled with fanfare in 2016.Now, the solar unit faces a new challenge: Walmart.Walmart’s inspectors found Tesla “failed to abide by prudent industry practices in installing, operating and maintaining its solar systems,” according to the breach-of-contract complaint. Many of the panels had defects that could be seen by the naked eye or were easily identifiable with proper equipment, Walmart said.“This is the culmination of inattention being paid to the business,” Joe Osha, an analyst at JMP Securities, said in an interview Wednesday.The case is Walmart Inc. v. Tesla Energy Operations, New York State Supreme Court, New York County.(Adds comment from attorney letter in sixth paragraph.)\--With assistance from Dana Hull and Matthew Boyle.To contact the reporters on this story: Brian Eckhouse in New York at email@example.com;Chris Dolmetsch in Federal Court in Manhattan at firstname.lastname@example.orgTo contact the editors responsible for this story: David Glovin at email@example.com, ;Lynn Doan at firstname.lastname@example.org, Joe Ryan, Reg GaleFor more articles like this, please visit us at bloomberg.com©2019 Bloomberg L.P.
In a client note, A.B. Bernstein said increased competition from Jaguar and Audi is weighing on Tesla’s sales of the Model S and X, particularly in Europe.
Today, in a tweet, US President Donald Trump called automobile company executives “foolish.” While Ford and GM are in the green, Tesla is down.
(Bloomberg Opinion) -- Solar-power developers often talk about a “pipeline” of projects, but this seems a bit too literal:To ensure proper torqueing, inspectors should have used a special tool known as an MC4 torque tool. However, some inspectors were using a plastic MC4 tool, which is insufficient to ensure proper torque. Indeed, a Tesla inspector admitted that Tesla was using a plumbing tool (rather than an electrical tool) to tighten connectors ... [Emphasis mine.]That was one of the more choice details from Walmart Inc.’s lawsuit against Tesla Inc. accusing it of “widespread, systemic negligence” with regards to solar-panel installations on more than 240 of the retailer’s stores, including seven connected to fires. And it is the choiceness of the details that matters here.In its complaint, filed in New York late Tuesday, Walmart contends Tesla breached its contract to design, install, maintain and operate solar-power systems on the roofs of its stores. Aside from the fires — complete with photographic evidence — Walmart accuses Tesla of a pattern of negligence, obfuscation and, as in the instance with the plumbing tool being used to tighten electrical connectors, sheer incompetence. Tesla did not respond to requests for comment. However, in letters from its lawyer, included as exhibits, Tesla blamed Walmart for “breaches of contract, deliberate delay, and bad faith,” effectively blocking the inspection process for the solar installations and unnecessarily forcing the entire fleet shut down for months because of a handful of “thermal events.”An unusual feature of Walmart’s complaint is that the “substantive allegations” section begins not with the fires or even the installation of the offending panels but an important chapter of Tesla’s own corporate history, namely the 2016 acquisition of SolarCity Corp. Walmart pulls no punches, characterizing the deal as a bailout of a struggling related party. This section reads like a dramatic prologue aimed at establishing the narrative that Tesla’s energy business was built on shoddy foundations, setting off a chain of unfortunate events that ultimately sparked those fires and put that plumbing tool in that inspector’s hand.It remains to be seen how effective a legal strategy this turns out to be. One of the most interesting aspects of the fight concerns the demand that all of the systems be “de-energized,” something Tesla’s lawyer characterized as being granted for the sake of goodwill but outside the scope of Walmart’s contracted rights. (Investors in leased solar systems are typically paid based on how much energy they generate, so shutting them off is costly.) For its part, Walmart argues that even if only a few fires happened, they were still fires on the roofs of big buildings where masses of customers mill around buying stuff, so perhaps an abundance of caution was warranted (especially if you’ve lost faith in the contractor). In any case, Walmart’s suit reopens old wounds for Tesla that never truly healed. SolarCity certainly was a struggling company. As I wrote in that summer of 2016, Tesla’s acquisition of it had more red flags than a Chinese embassy, with one proxy advisory firm characterizing it in Walmartian terms as a “thinly veiled bailout plan.” The deal flipped Tesla’s balance sheet from having net cash to net debt, including the $920 million convertible note that had to be settled for cash earlier this year. Since the deal, Tesla’s solar installations have dropped precipitously, with the second quarter’s figure merely one-seventh of what SolarCity deployed in its last quarter as a separate company. Tesla said it expects deployments to “stabilize and grow” in the second half.Tesla doesn’t break out figures for its energy operations beyond the gross margin line. However, from the fourth quarter of 2016 through the second quarter of 2019, gross profit added up to about $486 million. Annualized, that equates to a return of just 3.6% on the $4.9 billion transaction value — at the gross margin line. Apportioning Tesla’s R&D and general expenses to the energy business in line with its share of revenue would imply cumulative losses at the operating level. Speaking on an investor call earlier this year, a usually supportive Wall Street analyst described the SolarCity deal as a “controlled detonation.”Walmart’s suit comes mere days after Tesla introduced a new rental option to revive its solar business. Above all, it adds to the sense that SolarCity was a deal that Tesla didn’t need and which has ultimately burdened its resources and now maybe its reputation, too.The latter is especially important for a company that spent a good portion of last year struggling with the manufacture of a core product, the Model 3 car, and has faced questions about its own safety claims for that vehicle as well as complaints about quality and service. It is also important because, despite record vehicle sales, Tesla’s losses mean its highly priced stock continues to trade less on fundamentals and more on narratives of disruptive genius. At the very least, Walmart’s competing narrative could throw a pipe wrench into those particular works.To contact the author of this story: Liam Denning at email@example.comTo contact the editor responsible for this story: Daniel Niemi at firstname.lastname@example.orgThis column does not necessarily reflect the opinion of the editorial board or Bloomberg LP and its owners.Liam Denning is a Bloomberg Opinion columnist covering energy, mining and commodities. He previously was editor of the Wall Street Journal's Heard on the Street column and wrote for the Financial Times' Lex column. He was also an investment banker.For more articles like this, please visit us at bloomberg.com/opinion©2019 Bloomberg L.P.
The two big companies come to legal blows over allegedly faulty solar panels, while the LED lighting specialist disappoints on guidance.
Tesla’s service quality has been in focus this month, and reports of a Walmart solar panel fire could compound the company's troubles.
Tesla is building a Gigafactory 3 in China to offset some of the tariffs and expand its reach. Tesla wants to supply the Model 3 to Chinese consumers.
Mohamed El-Erian Says Europe Headed Down Mohamed el Erian, chief economic adviser of Allianz, doesn’t have a greatly optimistic view of the European economy. He says there is a 70% chance of the continent plunging into a recession. The United Kingdom, Italy, and Germany are all paralyzed by domestic issues including Brexit, a broken government, […]The post Market Morning: Europe Falters, Alibaba Postpones On Hong Kong, appeared first on Market Exclusive.
Walmart is suing Tesla after seven solar panels “allegedly caught fire,” CNBC reported. The companies had partnered to promote renewable energy.
People like to joke that Tesla Chief Executive Officer Elon Musk always wants to go to space. But he’s now announced a plan to use a little bit of the solar system to help with your bills. If you live in the right state. Getting Some Sun Tesla is relaunching their solar panel rental program. If you live in Arizona, Connecticut, Massachusetts, New Jersey, and New Mexico, you can get a panel for starting at $50 a month, and Californians get it for $65. Musk says that Tesla plans to get Europe panel’d up starting next year. Save That Cash “With the new lower Tesla pricing, it's like having a money printer on your roof if you live in a state with high electricity costs," Musk tweeted, adding that customers could potentially save $500 a year on their energy bills. Customers can also buy the panels outright, if they want. There’s no cancellation fee if customers break the rental contract, but it will cost $1,500 to have it removed, which Musk emphasized Tesla would make no profit from. Going Green Tesla bought the panel company SolarCity in 2016, but the company has struggled to get the service off the ground, losing out to rival services such as Sun Run. But this rebranding with a lower price point shows that Tesla is getting serious about its sustainability efforts. Earlier this year, Tesla’s Impact Report, outlining the effects of its operations on the environment and its respective communities, received nods of approval from Trillium Asset Management, a firm that tracks corporate sustainability. Though Trillium, which oversees around $2.5 billion for socially-conscious investors, added that it would like to see more concrete goals from the company about its plans to green up the world, it praised Tesla for preventing more than four million tons of C02 from entering the environment with its electric and zero-emission vehicles. -Michael Tedder Photo by Adobe
Solar energy systems installed and maintained by the electric car maker were responsible for fires at seven locations, with dozens showing hazardous problems such as loose wiring and "hot spots" on panels, according to court papers filed in New York State Supreme Court. Tesla did not respond to a request for comment. The lawsuit accuses Tesla of having untrained workers putting up shoddy installations and showing "utter incompetence or callousness, or both," court papers said.
Tesla (TSLA) bull and billionaire founder of Baron Capital, Ron Baron, talked to CNBC today about his long-term investment in TSLA stock.
As solar sales continue to slump for Tesla, the company is testing a brand-new strategy, allowing potential customers to rent the groundbreaking solar panels instead of purchasing them
In a series of tweets yesterday, Tesla (TSLA) CEO Elon Musk announced the company is relaunching its solar roof, letting customers rent the product.
Estée Lauder, Uber, Google, Tesla, Microsoft and Nvidia are the companies to watch.