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Fails & scandals

Judge deems Tesla liable for fraud over a Solar Roof that never passed inspection or made power

A San Diego judge has deemed Tesla liable on claims of fraud and negligent misrepresentation as a sanction for withholding records in a Rancho Santa Fe homeowner’s lawsuit over a roughly $110,000 Solar Roof that never passed inspection. The remaining trial will decide only damages, including possible punitive damages.

Tesla Solar Roof glass tiles on a house in Onalaska, Wisconsin. This is not the house in the lawsuit.
Photo: Wikideas1 / Wikimedia Commons, CC0

Judge Cynthia Freeland of San Diego Superior Court entered the finding on September 11 in Conroy v. Tesla, according to court records reviewed by Electrek. Ambrose Conroy signed in March 2020 for a 13.1 kW system priced at $82,210. Two contract amendments later, by February 2021, the price had climbed to about $110,000, covering an 18.2 kW roof plus six Powerwall batteries. The filings say the roof was never finished, did not pass county inspection and has produced no power for the house.

The order followed two smaller penalties. Freeland fined Tesla $15,467.50 in February and $13,500 in June for not delivering an adequate privilege log or the documents Conroy requested, warning each time that she could go further. When Tesla missed another deadline, she treated the two contested claims as established, citing evidence of willful conduct. The withheld material included OSHA logs, Microsoft Teams chats, county inspector emails and over 20 internal reports covering quality, safety and installation. Tesla had already accepted liability for breach of contract, breach of warranty and negligence in an October 20 joint filing.

Conroy puts the repair bill at more than $2.5 million; Tesla offered $5,000 to settle in April 2022, his complaint says. Denying reconsideration on October 27, Freeland wrote that records Tesla produced late could support Conroy’s claim that it used his house as an “experiment” while lacking the experience to deliver. Tesla failed another county inspection in February 2025, and an electrical expert hired by Conroy concluded this summer that the wiring Tesla routed beneath the tiles could short out and start a fire during heavy rain. Crews are now taking the roof off.

On October 29 Tesla asked Freeland to halt proceedings so it can seek review from the California Court of Appeal, calling the sanction “unduly punitive” and a violation of due process. The November 20 trial date was vacated, and the parties return for a readiness conference on December 4. Tesla stopped selling Solar Roof this year after about 3,000 US installations, Electrek has reported.

Why it matters: Tesla lost the fraud claims over paperwork, not testimony. Once a customer dispute turns adversarial, stop deleting texts, chat logs and inspection emails, and answer document requests on time: missed discovery deadlines can decide liability.

Sources

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