Walmart Inc (WMT) is demanding Tesla Inc (TSLA) pay for damages caused at seven stores and remove solar panels from hundreds of other retail locations.

What Happened

Tesla's solar panel business was born out of the 2016 acquisition of SolarCity. Tesla has installed solar panels at more than 240 Walmart stores.

In a lawsuit unearthed Tuesday afternoon, Walmart claims "no fewer than seven" stores have experienced a fire due to Tesla's solar panels.

Walmart alleges Tesla hired inexperienced workers who lack "basic solar training and knowledge," according to CNBC. Walmart claims the solar panels were not properly grounded and electrical systems were not installed properly. Some of the defects are visible to the naked eye and Tesla failed to fix its mistakes before fires started.

Walmart did not specify an amount it's seeking from Tesla but did claim the fires have caused millions of dollars worth in damages.

Why It's Important

Some investors rejected the notion of Tesla acquiring SolarCity and Walmart's lawsuit may add some fuel to the fire. Walmart's lawsuit states Tesla failed to correct SolarCity's "chaotic installation practices or to adopt adequate maintenance protocols, which would have been particularly important in light of the improper installation practices."

Tesla's stock closed Tuesday at $225.86 per share and traded lower by 1.5% Wednesday morning.