Image: Tesla

Tesla has issued a recall for its fully integrated Powerwall 2 AC battery energy storage system and launched a replacement program covering approximately 10,500 units in the United States.

According to the US Consumer Product Safety Commission, Tesla has received 22 reports of overheating, including six cases involving smoke and five incidents where minor fires caused limited property damage. No injuries have been reported.

Tesla attributed the recall to a defect in third-party battery cells, though the supplier was not named. “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.

The manufacturer stressed that the issue is confined to this specific group of Powerwall 2 units and does not affect Powerwall 3. All impacted systems will be replaced free of charge.

Tesla added on Thursday that nearly all affected units in the US have already been remotely discharged to ensure safety, with remaining units being manually discharged by company technicians.

The company is urging homeowners to check the Tesla app for a notification confirming whether their Powerwall 2 is affected. Once a unit has been discharged, it poses no operational risk, Tesla said. Customers will be contacted directly by Tesla or Certified Installers via email or phone to schedule replacements.

The US recall follows a similar nationwide recall in Australia initiated in September 2025. After receiving reports of safety incidents involving the Powerwall 2, Tesla identified an issue linked to a batch of lithium-ion battery cells supplied by a third party. The company said affected units were overheating, smoking, or emitting flames, resulting in minor property damage, and warned that these systems may fail.