Walmart Inc. has settled its lawsuit against Tesla Inc. over fires at more than a half-dozen of the retail giant’s stores.

Walmart sued the electric-car maker and solar company in New York State Supreme Court in August, alleging that its panels sparked fires at seven or more stores. Terms were not disclosed in the filing announcing the deal. Tesla shares rose as much as 1.9%.

In a joint statement, the two companies said they were “pleased” the issue was resolved.

The lawsuit threatened to undermine Tesla’s push to revive its struggling solar unit, potentially spooking would-be customers. It was filed days after Tesla Chief Executive Officer Elon Musk announced a new strategy to revive the unit, once America’s leading rooftop installer.

Walmart and Tesla announced they were in talks to resolve the suit shortly after it was filed. In an August deposition involving a separate legal dispute, Musk said a settlement with Walmart would include third-party inspections and repairs. “Tesla will pay for the third party,” he said.

The retail giant agreed to drop the case without prejudice, according to the filing, meaning the retailer can reassert the claims in the future.

With assistance from Dana Hull.

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