Tesla’s Powerwall 2
Supply: Tesla
Tesla is recalling round 10,500 models of its Powerwall 2, a backup battery for residential use, in line with a U.S. Client Product Security Fee disclosure out Thursday.
“The lithium-ion battery cells in sure Powerwall 2 methods may cause the unit to cease functioning throughout regular use, which can lead to overheating and, in some instances, smoke or flame and might trigger dying or critical damage resulting from fireplace and burn hazards,” the CPSC recall discover mentioned.
Whereas Elon Musk’s electrical automobile and clear vitality firm blamed the difficulty on a “third-party battery cell defect,” it didn’t identify the provider.
The recall discover mentioned Tesla beforehand obtained 22 buyer studies of the Powerwall 2 overheating, together with 5 fires leading to “minor property injury,” however no recognized accidents.
Tesla’s Powerwall merchandise are bought by way of its Vitality division, together with big, backup batteries which might be constructed for utility-scale tasks and use at massive enterprise amenities.
The Powerwalls work with Tesla’s photo voltaic photovoltaics, or photo voltaic rooftops, and might retailer electrical energy in a house to be used at a later time, together with throughout blackouts or throughout days or hours when electrical energy costs are increased.
In a separate discover on Tesla’s web site, the corporate emphasised that the difficulty doesn’t have an effect on house owners of newer mannequin Powerwall methods, particularly Powerwall 3. The corporate web site additionally mentioned, “all affected models are being changed for gratis to prospects.”
Tesla’s largest progress engine within the third quarter of 2025 got here from its vitality division, which sells Powerwalls. Tesla Vitality noticed income bounce 44% to $3.42 billion within the third quarter, and as of the top of September, its vitality section represented about one-quarter of Tesla’s general income.
Tesla shares fell by greater than 7% on Thursday. Representatives for Tesla didn’t reply to a request for remark.
