Powerwall 2

Tesla is recalling approximately 10,500 Powerwall 2 units due to a potential safety hazard: defective lithium-ion battery cells that can overheat, causing fire and burn risks. The issue, attributed to a third-party supplier, has led to 22 reports of overheating, including five fires. Tesla is replacing affected units free of charge. This recall could impact Tesla Energy’s growth, which saw a 44% revenue surge in Q3 2025, as Powerwall is a key component of its clean energy ecosystem. Newer Powerwall 3 is not affected.