Tesla Found Liable for Fraud Over a $110,000 Solar Roof That Never Produced Power

A California court has deemed Tesla liable for fraud and negligent misrepresentation over a Solar Roof installed on a home in Rancho Santa Fe, in the case known as Conroy v. Tesla. The September 11, 2026 order from San Diego Superior Court Judge Cynthia Freeland came as a sanction after Tesla repeatedly failed to hand over evidence, and it limits the remaining trial to compensatory and punitive damages.

The roof at the centre of the dispute cost about $110,000 \u2014 the contract started at $82,210 in 2020 and grew to roughly $110,000 for an 18.2 kW roof with six Powerwalls. According to the coverage, the roof never passed inspection and never produced any power, and the homeowner, Ambrose Conroy, says fixing his home will cost well over $2.5 million. Tesla\u2019s offer, made in April 2022, was $5,000.

The court had already ordered Tesla to pay sanctions for its discovery failures, including $15,467.50 in February 2026, with the two sanctions adding up to $28,967.50. On October 27, Judge Freeland denied Tesla\u2019s request for reconsideration, and on October 29 Tesla asked for a stay while it petitions the California Court of Appeal. A trial readiness conference is set for December 4, 2026.

The ruling is the most serious legal setback yet for Tesla\u2019s home energy business, and it arrives after the product itself has already ended: Tesla stopped selling the Solar Roof in 2026 after installing about 3,000 roofs. No final damages figure exists yet, so the $2.5 million-plus number is the plaintiff\u2019s remediation estimate, not a court award \u2014 but the liability finding itself is no longer in dispute.