Inspections found that several of Tesla's solar panels were broken and that wires were hanging out, causing a fire hazard, the Associated Press reported. In its lawsuit, Walmart said Tesla engaged in "widespread, systemic negligence" and "failed to abide by prudent industry practices in installing, operating, and maintaining its solar systems."
The news comes the same week that Elon Musk, Tesla's CEO, introduced a new rental plan for the companies solar panels at a price of as low as $50 a month.
Shares of Tesla were falling 1.92% to $221.52 in trading Wednesday.
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Constable owns none of the securities listed in this story.