A California judge has found Tesla liable for fraud and negligent misrepresentation in a lawsuit regarding a failed Solar Roof installation. The court issued the ruling as a sanction after the company repeatedly failed to provide requested discovery documents, including internal communications and safety reports.

The homeowner, Ambrose Conroy, signed a contract in March 2020 for a system initially priced at $82 210. By February 2021, the project scope expanded to $110 000 for an 18.2 kW roof and six Powerwalls. The system was never completed, failed to pass inspections, and never generated electricity.

Tesla has already admitted to breach of contract, warranty violations, and negligence. The court previously sanctioned the company $15 467.50 in February and $13 500 in June for discovery failures. The homeowner estimates repair costs at over $2.5 million.

Internal documents cited in the case suggest Tesla viewed the project as an experiment. Messages from January 2021 between engineering staff referred to the home as a complex test case. Tesla is currently attempting to appeal the court's sanction, arguing it is overly punitive.