In a landmark ruling, a California court has found Tesla liable for fraud and negligent misrepresentation in a lawsuit involving an unfinished Solar Roof installation that failed to generate electricity for a homeowner. Ambrose Conroy, the plaintiff, had signed an agreement with Tesla in 2020 for a $82,210 solar roof system. However, the project's cost escalated to approximately $110,000 after two amendments by February 2021. The revised installation was to include an 18.2-kilowatt roof and six Powerwall batteries. Unfortunately, the roof was never completed, did not pass a county inspection, and never generated electricity for Conroy's home. The homeowner estimates repair costs could exceed $2.5 million.
The court ruling comes after Tesla repeatedly failed to provide documents during legal proceedings, leading to sanctions totaling over $28,967.50. Judge Cynthia Freeland found the company's actions amounted to fraud and negligent misrepresentation, paving the way for compensatory and punitive damages to be determined in subsequent proceedings. Tesla has since appealed the ruling, claiming it had produced the relevant documents.
The case also highlights internal communications within Tesla, with text messages suggesting the project was an experiment. Conroy's legal team has cited these messages as evidence of the company's reckless approach to the installation. The lawsuit details numerous issues during the installation process, including prolonged work, damaged tiles, and safety concerns raised by electrical consultants.
Tesla continues to contest the fraud and negligent misrepresentation findings, with the case now under appeal. Conroy is currently in the process of removing the faulty roof from his home.