Tesla recalls Powerwall 2 AC Battery System due to fire hazards

Tesla has another recall on its hands — and this time it doesn't involve its EV cars.

On Thursday, Tesla issued a recall notice for its Powerwall 2 AC Battery System and has instituted a replacement program for the roughly 10,500 affected units in the United States. Tesla's Powerwall 2 AC Battery System is a residential or light commercial solution for storing energy generated by solar or from the grid. 

According to the U.S. Consumer Product Safety Commission (CPSC), "the lithium-ion battery cells in certain Powerwall 2 systems can cause the unit to stop functioning during normal use." A malfunctioning device can overheat "and, in some cases, smoke or flame and can [sic] cause death or serious injury due to fire and burn hazards," the official CPSC recall notice states.

The affected units were purchased from Tesla's website and through certified installation technicians for $8,000 between November 2020 and December 2022, according to the CPSC. Tesla is blaming a "third-party battery cell defect" for the issue.

The CPSC says it has received 22 reports of Tesla's Powerwall 2 AC Battery System overheating. Of those reports, six involved smoking units and five resulted in fires, which caused minor property damage. No injuries have been reported in connection with the device.

Tesla says that it has already "remotely discharged" nearly all the affected units, which means they no longer pose a risk. Any remaining units will be manually discharged by technicians. In addition, all affected Powerwall 2 units will be removed and replaced at no charge to customers. 

Powerwall 2 owners should check their Tesla app for any updates from the company.