Tesla is recalling approximately 10,500 Powerwall 2 AC battery systems in the United States following reports of overheating and fires. The issue stems from a defect in lithium-ion battery cells that can cause the units to malfunction, potentially leading to smoke or flames. No injuries have been reported, and Tesla has remotely discharged affected units to mitigate risks while offering free replacements.
The U.S. Consumer Product Safety Commission announced the recall on November 13, 2025, involving Tesla Powerwall 2 units sold between November 2020 and December 2022. These fully integrated AC battery systems, used for energy storage in residential and light commercial settings, were purchased through Tesla's website or certified installers for around $8,000. The model number 'Powerwall 2' appears on the nameplate label on the side of the unit.
According to the CPSC, the lithium-ion battery cells in certain units can cause the system to stop functioning during normal use, resulting in overheating and, in some cases, smoke or flame. This poses fire and burn hazards that could lead to serious injury or death. Tesla attributes the problem to a third-party battery cell defect.
The company has received 22 reports of overheating, including six instances of smoking and five fires that caused minor property damage. No injuries have been reported in connection with these incidents. The first U.S. fire reportedly occurred in 2023, with additional cases following.
This U.S. recall expands on a similar action Tesla took in Australia in September 2025 for Powerwall 2 units built between 2020 and 2022. Sources indicate Tesla has been aware of the issue for years, including in the U.S., and has used thermal response trailers to address overheating units.
To address the hazard, Tesla has remotely discharged—removing energy from—the batteries of nearly all affected online systems to prevent overheating until replacements are installed. Remaining units will be manually discharged by technicians. Consumers should ensure their Powerwall 2 is online and check the Tesla app for notifications about inclusion in the recall.
Tesla will remove and replace all affected units at no cost, prioritizing installations. Certified installers will contact owners by email or phone to schedule appointments. For questions, contact Tesla support at 877-961-7652 (Monday-Friday, 8 a.m. to 5 p.m. PT) or powerwallsupportna@tesla.com, or visit tesla.com/support/energy/powerwall/own/powerwall-2-replacement.
