The U.S. securities regulator (SEC) has officially opened an investigation into Tesla over allegations the company failed to disclose defects related to its solar panel systems, according to Reuters .
The probe stems from a whistleblower complaint filed by a former Tesla field quality manager, who alleges he was fired in 2020 as retaliation for raising concerns.
The filed complaint alleges that Tesla and SolarCity did not disclose the liability and exposure to property damages such as fires to shareholders before and after the acquisition.
According to his wrongful termination lawsuit, the safety issue impacted over 60,000 U.S. customers.
Litigation and concerns over faulty connectors and Tesla solar system issues stretch back several years. Walmart sued Tesla in 2019 over allegations that its solar panels led to seven store fires — the two settled.
Tesla shares stumbled on Monday by as much as 6.4% but quickly rebounded.