Tesla Powerwall Recall Lawsuit | 2026 Latest Updates

Tesla has recalled more than 10,000 Powerwall 2 AC battery systems after reports of overheating, smoke, and small fires that pose serious burn and property-damage risks. Homeowners affected by the recalled units may be eligible for legal compensation if they experienced overheating incidents, fire damage, or related losses.
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C.L. Mike Schmidt Published by C.L. Mike Schmidt
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If you purchased a Tesla Powerwall 2 AC battery power system that has been recalled for fire and burn hazards—and experienced property damage or personal injury—you may be eligible for legal review and compensation.

Our legal team offers a free, no-obligation consultation and accepts representation on a contingency-fee basis.

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What’s the Problem?

On November 13, 2025 the Tesla Powerwall 2 AC Battery Power Systems were subject to a national recall announced by the U.S. Consumer Product Safety Commission (“CPSC”) for fire and burn hazards, due to certain lithium-ion battery cells being able to overheat, smoke or catch fire, posing serious injury or death risks. [1]

Approximately 10,500 units sold in the U.S. between November 2020 and December 2022 through Tesla direct and certified installers are included in the recall. [2]

Though no injuries have been publicly reported to date, 22 reports of overheating—including smoke and five small fires—have been logged by the manufacturer. [1]

Latest Updates

  • November 13, 2025 – CPSC posts recall notice for the Tesla Powerwall 2 AC systems, identifying the hazard and the remedy of free replacement. [1]
  • November 14–15, 2025 – Media coverage reports that 22 overheating incidents, six involving smoke and five minor fires, are linked to the affected systems. [3]
  • November 16, 2025 – Tesla begins contacting owners via its app and installers; affected units are remotely discharged to lessen risk ahead of replacement units being installed. [2]

Product & Usage Overview

The recall covers certain units of Tesla Powerwall 2 AC battery power systems sold in the U.S. from November 2020 through December 2022. [1]

Specifically, the systems are identified by the model name “Powerwall 2” printed on the nameplate and were sold online at Tesla.com and through certified installers. [2]

The hazard arises because certain lithium-ion cells inside the units can fail during normal operation, causing overheating or fire—especially in home battery storage systems where they remain high-capacity for long periods. [1]

Injuries & Side Effects

  • Fire and burn damage: Six incidents of smoke and five confirmed small fires have been linked to the affected units, though no injuries have been reported. [3]
  • Risk of serious injury or death: The CPSC warns that risk exists because failure of the battery cells may lead to fire in a home environment and pose burn hazards. [1]
  • Property damage: Several incidents resulted in minor property damage—highlighting potential liability for homeowners, insurers and Tesla alike. [2]

Do You Qualify for a Tesla Powerwall Recall Lawsuit?

You may qualify if you:

  • Purchased a Tesla Powerwall 2 AC system included in the recall period and notified through the Tesla app or installer.
  • Experienced a failure, overheating event, fire or property damage that can be linked to the unit’s defect.
  • Have documentation of the unit (model, serial number), purchase date, installation records and any incident records.
  • Are within your state’s statute of limitations for product liability or personal injury claims.

Evidence You Should Gather

  • Serial number or model plate showing “Powerwall 2”, purchase invoice, and installation record.
  • Photos or videos of the unit, smoke/fires, damage, and the surrounding installation site.
  • Correspondence from Tesla, notification from the Tesla app, or recall communication indicating your unit is affected.
  • Receipts for repairs, property damage, insurance claims or any injury-related medical bills.
  • Records of symptoms, personal injury treatment, or expert assessments of damage cause.

Damages You Can Recover

Possible recoverable damages include:

  • Property damage: Cost to repair or replace the Powerwall unit, damaged property or resulting cleanup.
  • Medical expenses: If a consumer suffered burns, inhalation injuries or related health care costs.
  • Lost wages: Time away from work, repair delays or diminished use of property.
  • Pain and suffering: Emotional distress, loss of enjoyment of home, long-term impact from injury or damage.

While there is no widely-publicized filed class-action lawsuit yet for the Tesla Powerwall recall, legal firms are beginning to accept investigations and inquiries as new incidents and data emerge.

Potential legal claims include:

  • Defective product: The Powerwall 2 entered the marketplace with battery cells prone to failure and fire risk.
  • Negligence: Tesla or its battery-cell suppliers may have failed to ensure safe design, manufacturing or quality control of the storage systems.
  • Failure to warn: Allegations may be made that Tesla did not adequately warn homeowners about risks of overheating or provide timely recall communication.
  • Strict liability: As a product placed into the stream of commerce, the system may be held liable for danger regardless of negligence.
  • Breach of warranty: The Powerwall system was marketed as safe for home energy storage yet posed a serious fire hazard contrary to express or implied warranties.

Statute of Limitations & Timing

Product liability and personal injury claims generally carry one to three-year deadlines, depending on the state and when the harm or damage was discovered. Because the recall was announced in November 2025, prompt action is advisable to preserve documents, warranty logs, installation records and other evidence.

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Frequently Asked Questions

  • Can I still file a case if my Powerwall did not catch fire but overheated?
    Yes — if you own one of the recalled units and experienced overheating, smoke or property damage linked to the unit, you may still qualify.
  • Is this a class action lawsuit?
    Not yet — but attorneys may consolidate individual claims into a multi-plaintiff case if further incidents arise.
  • What should I do if my unit is still installed?
    Do not disable the safety lock-out; follow Tesla’s guidance, retain installation and recall notices, and contact Tesla Support at 1-877-961-7652 or powerwallsupportna@tesla.com. [1]

Why You Should Act Now

The Tesla Powerwall recall represents a significant safety breach in home-energy storage systems: every affected unit is a potential fire hazard in a residential setting. If you own one of the recalled Powerwall 2 systems—and experienced overheating, damage or risk of injury—consulting a qualified attorney now helps protect your rights, preserve critical installation data and strengthen any claim.

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Have you or a loved one been unreasonably injured by a dangerous or defective consumer product?

References

  1. https://www.cpsc.gov/Recalls/2026/Tesla-Recalls-Powerwall-2-AC-Battery-Power-Systems-Due-to-Fire-and-Burn-Hazards-Risk-of-Serious-Injury-or-Death
  2. https://www.reuters.com/business/autos-transportation/tesla-recalls-10500-powerwall-2-batteries-us-over-fire-risk-2025-11-13/
  3. https://www.theverge.com/news/820123/tesla-recall-uscpsc-powerwall-2-batteries-overheat-fire-burn-hazard

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