As you know. Tesla installed, maintains, and operates 248 solar photovoltaic energy systems located on rooftops at 248 Walmart stores, each system the subject of separate Solar Power & Services Agreement, Solar System Lease & Assignment Agreement. or similar contract (collectively, "Agreements"). While the specific terms of the Agreements vary in some respects. the fundamental underlying purpose of each is the same: Tesla supplies and maintains the systems that reliably generate clean, renewable solar power, and Walmart pays for the use of the equipment or the power it generates.
Regrettably, Walmart's breaches of contract, deliberate delay, and bad faith have frustrated that fundamental purpose. Today, all 248 rooftop systems lie idle. Of those, 244 systems are offline not because they are inoperable or unsafe, but because Walmart unfairly seeks to exploit claims it asserted - concerning just four other systems - as a pretext for refusing to comply with Walmart's contractual obligations and for demanding concessions from Tesla on all 248 systems, For over a year now, Tesla has made extensive efforts to accommodate Walmart's inconsistent and shifting positions, repeated delays, and unreasonable demands, all at significant cost to Tesla. My client continues to prefer a business solution to this dispute, but Walmart's conduct has put the parties on a collision course for litigation.
