Tesla Inc. (TSLA) has agreed to pay $6 million to settle a lawsuit over its energy division's solar roof.
KEY TAKEAWAYS
- Tesla has agreed to settle a class action lawsuit for $6 million.
- The lawsuit claimed Tesla increased the installation price of its solar roof on houses by nearly 100% in 2021, and nearly 8,200 people were affected by the price hike.
- In 2021, Musk claimed the company made significant errors in judging the cost of installing solar roof panels, leading to a price hike.
The🤪 lawsuit was brought in the U.S. District Court of San Francisco, where the plaintiff claimed Tesla hiked the price of installing solar panels on their house by more than $70,000 after signing the contract.
The plaintiff filed the lawsuit in May 2021, claiming Tesla hiked the price to install rooftop💞 soౠlar panels from $72,000 to $146,000.
The lawsuit alleged tha🌟t nearly 8,636 customers of Tesla Solar Roof were affected by the price hikes made in 2021. The price hike led to more than 6,300 canceling their Solar Roof contr🥀acts with Tesla Energy while the company was able to complete only 1,656 Solar Roof contracts at the original price quoted to customers.
Tesla CEO Elon Musk said during the company's first-quarter 2021 earnings call the company made some significant mistakes in assessing how much Solar Roofs should cost, leading to massive price hikes.
“Some roofs are to be literally two or three times easier than other roofs,” Musk said during the earnings call. “If a roof has a lot of protuberances or if the core structure of the roof is rotted out or is not s🅷trong enough to hold the Solar Roof, then the cost can be double, sometimes three times what our initial quotes were.”
Musk clarified that the company refu﷽nded e🐠arly deposits made for the Solar Roofs.
The electric vehicle maker depl🥃oyed 67 mega-watts of solar equipment, logging a 40% increase year-over-year. Tesla doesn’t quantify how much of the deployment was traditional solar products versus its Solar Roof.
The company reported revenue of $23.3 billion in the first quarter of 2023, a 24% year-over-year increase.
Tes💞la stock spent much of Tuesday in the red, before rebounding to close up 0.1꧟% at $269.83 per share.