Tesla has issued a recall for approximately 10,500 Powerwall 2 AC Battery Systems sold in the United States between November 2020 and December 2022, citing a significant fire hazard. The issue stems from defective lithium-ion battery cells supplied by a third-party vendor, leading to potential overheating, smoking, and even flames during normal operation.

The Problem: Defective Battery Cells

The U.S. Consumer Product Safety Commission (CPSC) reports that malfunctioning Powerwall 2 units can suddenly stop functioning, triggering a dangerous thermal event. In some cases, the overheating has led to smoke and open flames, posing a severe risk of fire and burn injuries. While no injuries have been reported to date, the potential for serious harm prompted the recall.

Reported Incidents

To date, the CPSC has documented 22 reports of Powerwall 2 overheating, with six units smoking and five catching fire. These fires caused minor property damage, but the incidents underscore the real danger posed by the defective cells. The cost of a single Powerwall 2 unit is around $8,000, making this a costly issue for both Tesla and its customers.

Tesla’s Response

Tesla has already taken steps to mitigate the immediate risk. The company remotely discharged nearly all affected units, rendering them temporarily safe. Any remaining units will be manually discharged by technicians. Crucially, Tesla will replace all recalled Powerwall 2 units free of charge to customers.

How Customers Can Check

Powerwall 2 owners should monitor their Tesla app for updates and instructions from the company. Tesla is actively managing the recall process and will notify affected customers directly. The recall affects units purchased directly from Tesla’s website or through certified installation technicians.

Context: Residential Battery Systems

The Powerwall 2 is designed for residential and light commercial energy storage, typically paired with solar panels or grid energy. These systems store excess energy for later use, reducing reliance on the grid. The recall highlights the critical importance of battery safety in home energy solutions.

This recall underscores the potential risks associated with lithium-ion batteries, even in well-established products from leading manufacturers. Tesla’s swift response, including remote discharging and full replacements, demonstrates a commitment to customer safety. The incident also raises questions about supply chain oversight and third-party vendor quality control in the rapidly growing home energy storage market