Probes Tesla over solar-panel safety US watchdog

According to reports, U.S. authorities are investigating allegations that Tesla's solar panels failed to disclose the risk of fire.

A whistleblower's complaint prompted an investigation by the US Securities and Exchange Commission (SEC).

Steven Henks, a former Tesla site quality manager, claimed that the company failed to properly notify shareholders and the public of the risks.

As we all know, the Tesla solar system will catch fire in a few cases.

Mr. Hanks filed a complaint more than a year ago that Tesla failed to properly disclose that certain electrical connector defects could cause a fire, but instead told customers that it must perform maintenance to prevent problems with shutting down the solar panel system.

"We have confirmed with the staff of the law enforcement agency that the investigation you seek to record is still ongoing," the US Securities and Exchange Commission told Henks in a letter, which Reuters said it had independently verified.

 Mr. Henks was fired by Tesla and sued the company for his dismissal.

Soon after the news of the US Securities and Exchange Commission investigation was announced, the company's share price fell by more than 6%, but has since risen slightly.

The fire safety issue of Tesla's solar panels has been reported before.

In 2019, American retailer Wal-Mart sued Tesla for fire in 7 stores where panels were installed.

After reaching a settlement agreement, the legal action was later dismissed.

Tesla cancelled its public relations department in 2020, so it could not be reached for comment.