The U.S. Securities and Exchange Commission (SEC) has opened an investigation into Tesla over a whistleblower complaint associated with solar panel defects, according to an SEC complaint obtained by Reuters.

Steven Henkes, a former Toyota quality division manager, became a SolarCity quality engineer before Tesla's acquisition of SolarCity in 2016. Henkes claims Tesla and SolarCity did not disclose “liability and exposure to property damage, risk of injury of user, fire etc. to shareholders,” before or after the acquisition, according to the SEC complaint.

Henkes' duties changed with the acquisition, and that was when he noticed problems with the solar panels. Henkes also claims that Tesla fired him for raising concerns in Aug. 2020. The issue affected 500 government and commercial accounts and 60,000 customers in the U.S., according to a lawsuit Henkes filed against Tesla for wrongful termination.

Henkes claims in the SEC complaint that he told Tesla management to shut down the fire-prone solar systems and report them to consumers and safety regulators, but he was ignored.

“The top lawyer cautioned any communication of this issue to the public as a detriment to the Tesla's reputation. For me this is criminal,” he said in the SEC complaint. According to the SEC, the investigation “is still active and ongoing.”

Tesla is the subject of multiple investigations and other legal troubles, upping pressure on the iconic automaker. Tesla faces another federal safety probe over accidents involving driver assistant systems. Employees hve also reported instances of workplace harassment, comparing a Tesla plant in Califormia to a frat house.

The news also comes after Tesla CEO Elon Musk warned about his other high-profile company, SpaceX, facing potential bankruptcy.

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