Tesla recalled around 10,500 units of its Powerwall 2 battery, according to a United States Consumer Product Safety Commission disclosure.
The battery is used as a backup for residential use, and the notice said it was recalled due to overheating.
“The lithium-ion battery cells in certain Powerwall 2 systems can cause the unit to stop functioning during normal use, which can result in overheating and, in some cases, smoke or flame and can cause death or serious injury due to fire and burn hazards,” the CPSC recall notice said.
Tesla blamed the issue on a “third-party battery cell defect”, but did not name the supplier.
The company also said it is remotely limiting the charge on affected units to minimise risk while it arranges free replacements for customers.
Tesla also reassured customers that the issue does not affect Powerwall 3.
There were 22 complaints leading up to the recall, including five resulting in “minor property damage”, but no known injuries.
The Powerwalls are sold by Tesla’s energy division, which was the company’s biggest growth engine in the third quarter of 2025.
The energy division saw a revenue jump of 44% to US$3.42 billion, representing around one-quarter of Tesla’s overall revenue.
At the time of writing, Tesla (NASDAQ: TSLA) shares dropped by 6.64% to US$401.99.
