Tesla short says Elon Musk should resign over solar panel fires

Tesla short David Einhorn of Greenlight Capital said on Twitter Friday that CEO Elon Musk should resign following allegations that the company’s solar panels have caused fires.

The comments came just days after Walmart filed a lawsuit against Tesla claiming that solar panels it bought from the company caught fire in seven of its stores. Walmart alleged Tesla committed gross negligence, breach of contract and failure to live up to industry standards. It is asking for Tesla to remove its solar panels from over 240 Walmart locations and pay damages related to the fires.

“How many solar panels are still defective and could cause fires?” Einhorn tweeted Friday, saying the company “should immediately notify the people who live in and work in buildings at risk.”

“A recall should have happened long ago,” he tweeted, tagging the U.S. Consumer Product Safety Commission.

Tesla did not immediately respond to a request for comment.

On Thursday, Tesla and Walmart released a joint statement saying they “look forward to addressing all issues and re-energizing Tesla solar installations at Walmart stores, once all parties are certain that all concerns have been addressed.Together, we look forward to pursuing our mutual goal of a sustainable energy future. Above all else, both companies want each and every system to operate reliably, efficiently, and safely.”

Subscribe to CNBC on YouTube.

WATCH: Tesla is building the largest battery system in the world