Tesla (TSLA) Forced to Recall 10,500 Solar Panel Batteries—Fire Hazard Sparks Urgent Action

Tesla's solar ambitions hit a snag as regulators sound the alarm on overheating risks.

Flames over efficiency: The recall affects 10,500 Powerwall units after reports of thermal runaway—because nothing kills a green energy narrative like actual fire.

Wall Street shrugs: TSLA stock dips 0.3% pre-market, proving once again that Elon's companies get judged by different rules (see also: Dogecoin tweets moving markets).

Silver lining? At least crypto miners can't blame this one for their rigs catching fire.

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The recall comes after more than 20 reports of the systems overheating. The U.S. Consumer Product Safety Commission stated that the affected systems “may fail and overheat,” which poses a risk of injury or death. No injuries have been reported, though the defect has caused property damage in some cases, said the Safety Commission.

The Powerwall 2 is a residential energy-storage unit designed to work with solar-panel systems that are installed in homes. The system stores electricity for future consumption, helps users shift their energy usage to lower-cost periods of the day, and provides backup power during outages, similar to a generator.

Smoke and Ignition

According to the recall notice, certain lithium-ion battery cells used in the Powerwall 2 systems may overheat and lead to smoke or fire ignition. Tesla said that it is taking precautionary measures by remotely limiting the charge on Powerwall 2 battery systems to minimize risks.

The company run by CEO Elon Musk is also arranging free battery system replacements for impacted customers. This is not the first recall that Tesla has made due to a battery issue. Earlier this year, the company recalled nearly 13,000 Model 3 and Model Y electric vehicles due to a battery issue.

Is TSLA Stock a Buy?

The stock of Tesla has a consensus Hold rating among 34 Wall Street analysts. That rating is based on 14 Buy, 10 Hold, and 10 Sell recommendations issued in the last three months. The average TSLA price target of $382.54 implies 5.58% downside from current levels.