Tesla has recalled approximately 10,500 Powerwall 2 battery systems in the United States due to a third-party battery cell defect that poses fire risks. The recall follows reports of overheating and minor property damage, with replacements provided at no cost to customers. Nearly all affected units have been remotely discharged to ensure safety.
Tesla initiated a nationwide recall of its Powerwall 2 AC battery energy storage systems on Thursday, November 14, 2025, affecting around 10,500 units sold between November 2020 and December 2022. The U.S. Consumer Product Safety Commission and Tesla jointly announced the action after receiving 22 reports of overheating, including six instances of smoking and five cases of fire that caused minor property damage. No injuries have been reported, though the issue carries risks of fire, burns, and potentially death.
The problem stems from a "third-party battery cell defect," according to Tesla, which did not name the supplier. "The affected subset of Powerwall 2 units may stop functioning normally, resulting in overheating, smoking and in some cases smoke or flame causing minor property damage," the company stated in its announcement. This defect is limited to a specific batch and does not impact Powerwall 3 systems.
To mitigate immediate risks, Tesla has remotely discharged nearly all affected units in the U.S., rendering them safe and temporarily disabling backup power while solar generation continues. Remaining units are being handled by technicians. Customers are advised to check the Tesla app for notifications confirming if their system is affected. Replacements will be scheduled via email or phone from Tesla or certified installers, with all units removed and replaced at no cost.
"Every affected Powerwall 2 unit will be removed and replaced at no cost to customers," Tesla noted. For assistance, owners can contact powerwallsupportna@tesla.com or call 877-961-7652.
This U.S. recall echoes a similar action in Australia launched in September 2025, following comparable safety incidents with the same battery cells. Tesla's energy storage division remains a key growth area, reporting $3.41 billion in third-quarter 2025 revenue with a 31.4% profit margin, and an 84% year-over-year increase in deployed capacity to 43.5 GWh over the past 12 months.