Tesla Recalls Powerwall 2 Units After Reports Of Overheating And Fires

Benzinga

Tesla is recalling about 10,500 Powerwall 2 home batteries after defective cells caused overheating and five fires. The CPSC warned the flaw poses serious burn and fire risks, though incidents caused only minor damage. The issue stems from a third-party supplier, and Tesla shares fell over 7%.

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00:00It's Benzinga bringing Wall Street to Main Street.

00:02Tesla is recalling about 10,500 Powerwall II home backup batteries, according to CNBC.

00:09The U.S. Consumer Product Safety Commission said the defective lithium-ion cells in some

00:14Powerwall II units can cause failures that lead to overheating, smoke, or fire, and pose

00:20life-threatening burn hazards.

00:22Tesla attributed the problem to a third-party battery cell defect, but did not identify

00:26the supplier.

00:28The company received 22 overheating reports, including five fires that caused minor property

00:33damage.

00:34Tesla sells its Powerwall batteries through its energy division, offering home storage systems

00:39that pair with solar rooftops to store electricity for later use, including during outages or

00:44high-priced periods.

00:46Powerwalls, part of Tesla's fast-growing energy division, contributed to a 44 percent revenue

00:52increase to $3.42 billion in the third quarter.

00:56Tesla shares fell more than 7 percent on Thursday.

00:59For all things money, visit benzinga.com.

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