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Tesla battery blunder sparks fires: Homes damaged as Powerwall 2 recall is urgently issued

Warning battery could cause serious injury or death

READ MORE: Kmart removes children’s toy following urgent recall

By SARAH BROOKES – SENIOR REPORTER, AUSTRALIA

Published: 01:24 BST, 17 September 2025 | Updated: 01:35 BST, 17 September 2025

A popular Tesla-branded home battery has been urgently recalled across Australia after alarming reports of units catching fire and damaging homes.

The Australian Competition and Consumer Commission said Tesla had received multiple reports of rechargeable lithium-ion battery packs failing and overheating in Powerwall 2 units.

The Powerwall 2 contains 14kWh of lithium-ion batteries, and is usually installed alongside solar panels to store excess power generated during the day.
Tesla said the battery cells affected were supplied from a third-party supplier.
It is unknown how many are impacted.

‘Tesla has received reports of Powerwall 2 units with the affected battery cells smoking or emitting flames, resulting in minor property damage,’ the ACCC said in a statement released on Tuesday.

‘Most affected units have already been remotely discharged by Tesla.

‘While the risk of overheating is now very low, if it does occur, it may lead to a fire that could cause serious injury, death or damage to property.’

The Powerwall 2 contains 14kWh of lithium-ion batteries and is usually installed alongside solar panels to store excess power generated during the day (stock image)

So far, no injuries have been reported.

Homeowners will be notified in the Tesla app if their Powerwall is part of the recall, and the company is in the process of discharging the batteries to reduce the risk of fire.

Tesla said affected batteries will be replaced at no cost, with compensation for lost energy savings considered on a case-by-case basis.

Some consumers may have already noticed their Powerwall 2 system has been remotely discharged.

For units not yet discharged, Tesla will remotely deactivate affected Powerwall 2 systems that are online to mitigate any risk of overheating until the replacement can be carried out.

The fault is confined to a select group of Powerwall 2 users and does not impact the newer Powerwall 3 model.

Tesla said it is prioritising affected customers and will work directly with them and installers to arrange removal and replacement.

The company, which manufactures the Powerwalls in Nevada, has not yet issued a recall notice outside Australia.

Tesla, led by tech billionaire Elon Musk, has championed solar power and battery technology, positioning itself as a vocal advocate for renewable energy.

In 2023, Musk suggested if solar energy was harnessed effectively, it could power a civilisation 100 times larger than the current global population.

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Tesla battery blunder sparks fires: Homes damaged as Powerwall 2 recall is urgently issued

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