TESLA RECALLS 10,500 POWERWALL 2 UNITS OVER FIRE AND OVERHEATING CONCERNS. (PHOTO).

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Tesla recalls 10,500 Powerwall 2 units over fire and overheating concerns

Tesla is recalling approximately 10,500 Powerwall 2 units, its home backup battery system, due to risks of overheating and fire, according to a U.S. Consumer Product Safety Commission notice released Thursday.

The recall affects lithium-ion battery cells in certain units that could

fail during normal use, potentially causing smoke, flames, or serious injury. Tesla attributed the problem to a “third-party battery cell defect” but did not disclose the supplier. The CPSC said the company has received 22 reports of overheating, including five fires that caused minor property damage, with no reported injuries.

Powerwall 2 batteries store electricity from solar panels or the grid for home use during outages or peak pricing periods and are part of Tesla Energy’s residential and utility-scale offerings. Tesla confirmed that newer Powerwall 3 models are not affected and stated that all recalled units will be replaced at no cost to customers.

Tesla’s energy division, which includes Powerwalls, has been a major growth driver, with revenue rising 44% to $3.42 billion in the third quarter of 2025, representing roughly a quarter of the company’s total revenue. Following the recall announcement, Tesla shares dropped more than 7%.


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