Tesla Powerwall 2 Fire Lawsuit Lawyers

Tesla Recalls 10,500 Powerwall 2 AC Battery Units After Fire, Smoke, and Burn Hazards Raise Alarms

The Tesla Powerwall 2 is a home battery backup system designed to store energy for later use. It allows homeowners to reduce dependency on the electrical grid, store solar power, and maintain energy during blackouts. From 2020 through 2022, thousands of these systems were sold directly through Tesla.com and installed by certified installers. Each unit retailed for approximately $8,000.

On November 13, 2025, Tesla issued a national recall for about 10,500 Powerwall 2 AC Battery Power Systems after identifying a defect in the lithium-ion battery cells. According to recall documentation from the U.S. Consumer Product Safety Commission (CPSC), the affected batteries could overheat during normal operation, potentially causing smoke, fire, and in extreme cases, death or serious burn injuries.

The malfunction centers around overheating caused by battery failure, not misuse or external damage. Reports show that the device may stop functioning as intended and build up dangerous levels of heat, leading to a fire hazard. The risk was significant enough for Tesla to begin remotely discharging affected batteries in use across the country to prevent further incidents.

Documented Incidents and Reported Hazards

As of the recall announcement, Tesla had received 22 reports of overheating, including:

• 6 reports of visible smoke
• 5 reports of actual fires
• Minor property damage in several cases

While no injuries or fatalities have been reported at this time, the nature of these malfunctions presents a real risk of burn injuries, house fires, smoke inhalation, and even death under certain conditions. These events are not theoretical. They’ve already happened, and more cases could arise if defective units remain in operation.

The incidents reported suggest that even properly installed units could experience dangerous failure modes. When the battery overheats, it may ignite surrounding materials or emit toxic smoke. The fire risk is especially high in homes with wood framing, attic installations, or insufficient ventilation around the unit.

Who Is at Risk and What You Should Check Immediately

This recall affects Powerwall 2 AC units sold between November 2020 and December 2022. The model number “Powerwall 2” appears on the nameplate label located on the side of the battery unit. Affected units were purchased either directly from Tesla or through Tesla-certified solar energy installers across the United States.

If you have one of these systems in your home or business:

• Check the Tesla App for recall notifications.
• Ensure your unit is online, as Tesla has been remotely discharging these batteries to neutralize the fire risk.
• If your system is not connected to the internet, you may still be at risk and should manually check your hardware label or call Tesla support.

According to Tesla, affected systems are temporarily deactivated, meaning their energy storage function has been paused until a replacement is provided. However, some offline units may not have been neutralized, posing an ongoing danger to users unaware of the recall.

Tesla’s Response and Recall Process

Tesla is offering to replace the defective Powerwall 2 units free of charge. The company began contacting consumers through email, app notifications, and its support page, instructing them to verify their system’s status.

Key points of Tesla’s recall response:

• Remotely discharging units that are online to prevent further overheating events.
• Advising users to contact Tesla Support if they are unsure about their unit status.
• Directing users to the Tesla App and online portal to confirm if their system is affected.
• Coordinating replacements with certified installers nationwide.

While the replacement is free, the timing is unclear, and affected consumers may be without a functioning battery system for an extended period. During this time, homeowners may face elevated energy bills, reduced solar storage capability, and lack of backup power during outages.

Legal Concerns: When Product Defects Lead to Harm

Lithium-ion battery systems, like the Tesla Powerwall 2, are powerful and complex. When improperly designed, assembled, or managed, they can become hazardous. A defect that causes overheating and fire presents a serious product liability concern. If someone has suffered property damage, injury, or financial loss due to a failed Powerwall 2 unit, they may have a right to seek compensation.

Potential legal issues involved:

• Product Defect: The battery should not overheat under normal usage.
• Failure to Warn: Users were unaware of the fire risk prior to the recall.
• Delayed Recall: Systems were sold over two years before the defect was publicly acknowledged.
• Remote Discharge Without Consent: Some users may not have been aware that Tesla disabled their units.

Tesla has a responsibility to ensure that its energy storage products are safe, functional, and supported. Those affected by battery malfunctions or system deactivation could have valid legal claims, especially if injuries or losses occurred.

Compensation for Victims of Defective Battery Units

If a Tesla Powerwall 2 unit caused a fire, emitted smoke, or led to loss of property, homeowners may be eligible for damages. Lawsuits may involve claims for:

• Property Damage: Repair or replacement of walls, furniture, flooring, or structural elements.
• Medical Expenses: Burns, smoke inhalation, or related injury treatment.
• Loss of Use: Inability to use a system that was sold as reliable and safe.
• Loss of Backup Power: Particularly important for medical patients, businesses, or homes in disaster-prone areas.
• Punitive Damages: In extreme cases involving negligence or reckless failure to warn.

If Tesla failed to act quickly or did not notify affected customers effectively, that could strengthen liability claims. Each case must be reviewed based on evidence of product defect, harm, and Tesla’s actions or inaction.

What Tesla Owners Should Do Next

Anyone who purchased a Powerwall 2 system from November 2020 through December 2022 should:

1. Check the Tesla App for recall alerts.
2. Contact Tesla Support to confirm unit status: 877-961-7652.
3. Take photographs of your unit and any visible damage.
4. Document any past malfunctions, overheating events, smoke, or outages.
5. Seek legal advice before accepting repairs or signing any waivers.

You do not need to wait for Tesla to replace your unit to explore your legal rights. Affected consumers may pursue compensation separately while awaiting hardware replacement or support.

Tesla Powerwall 2 Battery Fire Lawsuit FAQs

What is the reason for the Tesla Powerwall 2 recall?

Tesla recalled about 10,500 Powerwall 2 AC Battery Systems due to overheating risks from faulty lithium-ion battery cells. Some units have stopped working and produced smoke or fire during regular use.

What incidents have been reported so far?

Tesla has received 22 overheating reports, including six involving smoke and five fires. Some resulted in minor property damage, but no injuries have been reported yet.

How do I know if my unit is affected?

Check the Tesla App for a recall notice. If your Powerwall 2 system was purchased between November 2020 and December 2022, it may be included. You can also contact Tesla Support at 877-961-7652.

What is Tesla doing to fix the issue?

Tesla is remotely discharging affected units to prevent overheating and offering free replacements. However, timelines for replacement may vary, and some systems may remain offline for weeks or months.

Do I have a legal claim if my unit caused damage?

Yes. If your Powerwall 2 unit caused fire, smoke damage, or forced disconnection of your system, you may qualify for compensation. This includes property loss, medical bills, and other related expenses.

Can I sue even if no fire occurred?

Possibly. If you lost the ability to use your Powerwall 2 or experienced increased energy costs or loss of backup power, those damages may be compensable.

What if my system was offline and Tesla didn’t discharge it?

This could increase your risk and strengthen a legal claim, especially if Tesla failed to notify you or act in time to prevent harm.

Contact Parker Waichman LLP For A Free Case Review

If your Tesla Powerwall 2 battery system overheated, caught fire, or was disabled remotely, you may be entitled to compensation for property loss, injury, or disrupted power. Parker Waichman LLP is a national personal injury law firm currently investigating claims related to this urgent Tesla recall.

Call 1-800-YOUR-LAWYER (1-800-968-7529) for a free, confidential consultation. Regardless of your location or where your injury occurred, our nationwide product injury law firm is ready to assist you. Our legal team is ready to help you understand your rights, investigate your case, and pursue the compensation you deserve.