SEC Reportedly Opens Probe into Tesla’s Solar Panel Defects

Shares of electric vehicle maker Tesla were falling on Monday after Reuters reported that the Securities Exchange Commission has opened an investigation onto the company.

The report said the probe is in response to a whistleblower complaint alleging the company failed to properly notify its shareholders of solar panel defects.

Shares dropped as much as 6.4% as Wall Street digested the news but the stock reversed much of the losses and mostly was unchanged by the end of the day.

According to the Reuters report, the SEC launched the probe in response to a former Tesla employee’s whistleblower complaint that alleged the company failed to properly notify its shareholders and the public of fire risks associated with its solar panel systems.

The report cited communications between the agency and the whistleblower, Steven Henkes, who worked as a solar field quality manager for Tesla, dated Sept. 24.

Henkes had filed a whistleblower complaint in 2019. He was fired in 2020 and sued Tesla, alleging he was dismissed in retaliation for raising safety concerns.

CNBC has also reported that the U.S. Consumer Product Safety Commission is also probing the automaker after Henkes filed a complaint with the agency.

The Commission is considering as evidence Henkes’ complaint and has interviewed the former Tesla worker.

Henkes declined to speak with CNBC directly but answered some questions by email through his attorney, Robert Wallace. Henkes believes “there continues to be a real threat of fires due to serial defects in the Tesla installations,” a statement from Wallace says. “The consumers have not been adequately informed of the risks.”

Disclaimer: We have no position in any of the companies mentioned and have not been compensated for this article.