Tesla recalls 10,500 Powerwall 2 systems due to overheating, fire risk

Tesla’s The U.S. Consumer Product Safety Commission is recalling approximately 10,500 units of the Powerwall 2, a battery replacement for residential use, the U.S. Consumer Product Safety Commission announced Thursday.

“Lithium-ion battery cells in certain Powerwall 2 systems may cause the unit to stop operating during normal use, resulting in overheating and, in some cases, smoke or flames, which may result in death or serious injury due to fire and burn hazards.” CPSC recall he said warning.

Elon Musk’s electric vehicle and clean energy company blamed the problem on “third-party battery cell failure” but did not name the supplier.

The recall notice stated that Tesla had previously received 22 customer reports of Powerwall 2 overheating, including five fires that resulted in “minor property damage” but no known injuries.

Tesla’s Powerwall products are sold through its energy division, along with giant backup batteries produced for grid-scale projects and used in large business facilities.

Powerwalls are powered by Tesla’s solar photovoltaics, or solar roofs, and can store electricity in a home for use at a later time, including during power outages or on days or hours when electricity prices are high.

In a separate announcement Tesla’s websiteThe company emphasized that the issue does not affect owners of newer model Powerwall systems, specifically Powerwall 3. The company’s website also stated that “all affected units are being replaced at no cost to customers.”

Tesla’s biggest growth engine in the third quarter of 2025 came from its energy division, which sells Powerwall. Tesla Energy saw its revenue rise 44% to $3.42 billion in the third quarter, and as of the end of September, the energy segment represented nearly a quarter of Tesla’s total revenue.

Tesla shares fell more than 7% on Thursday. Tesla representatives did not respond to a request for comment.