Tesla Recalls Powerwall 2 Due to Overheating Risk
Tesla is recalling around 10,500 Powerwall 2 home backup battery systems due to concerns about overheating, which could potentially lead to smoke, flames, and even fire hazards. This is particularly worrying since these systems are typically installed in residential settings.
According to the U.S. Consumer Product Safety Commission (CPSC), Tesla’s recall, announced recently, is due to a potential defect in the lithium-ion battery cells that may cause the systems to malfunction during regular usage.
The CPSC’s recall notice highlighted that faulty battery cells could overheat and, in some instances, produce smoke or ignite, posing severe fire or burn risks that could result in serious injuries or fatalities. Tesla attributed the issue to “a defective third-party battery cell,” but did not disclose the name of the supplier involved.
Before the recall was issued, Tesla had already received reports from 22 customers about their Powerwall 2 units overheating, and there were five instances of fires that resulted in minor damage. Fortunately, no injuries have been reported related to these defective batteries.
The Powerwall 2 is a backup system meant for residential use, designed to work with Tesla solar panels and rooftops. It stores the electricity generated by solar panels, allowing homeowners to utilize that stored energy during outages or to rely on it as a primary energy source instead of the utility company.
Tesla clarified that this recall is limited to Powerwall 2 models and does not affect the newer Powerwall 3 system. The company intends to replace all impacted units at no cost to customers, as stated on its official website.
This recall comes amidst significant growth in Tesla’s energy division, which has seen increased sales of Powerwalls and other large-scale backup batteries to utilities and businesses. In the third quarter of 2025, the Energy segment reported a 44% revenue increase to $3.42 billion, making up about a quarter of Tesla’s total revenue.
