Tesla Inc. (TSLA) is recalling about 10,500 units of its Powerwall 2 systems, citing risks of fire and burn hazards, the U.S. Consumer Product Safety Commission said on Thursday.
Powerwall is a compact home battery that stores energy generated by solar or from the grid which can then be used to power devices and appliances during outages.
The lithium-ion battery cells in certain Powerwall 2 systems can cause the unit to stop functioning during normal use. This can result in overheating and, in some cases, smoke or flame, and can cause death or serious injury due to fire and burn hazards, the regulator noted.
The recall comes on the heels of the company receiving 22 reports of overheating, including six reports of smoke and five reports of fire resulting in minor property damage. However, no injuries have been reported, the regulator noted.
The affected Powerwalls were manufactured by Tesla in Nevada and sold online or through certified installers from November 2020 to December 2022 for approximately $ 8,000.
Tesla has remotely removed energy from the battery of the Powerwall systems affected by the recall to prevent overheating. The company will replace the units to resolve the issue.
Shares of TSLA traded over 6% lower at the time of writing. On Stocktwits, retail sentiment around TSLA fell from ‘extremely bullish’ to ‘bullish’ territory over the past 24 hours while message volume remained at ‘high’ levels.
TSLA stock is up approximately 0.4% year-to-date and by 23% over the past 12 months.
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