Why Is Tesla Stock Falling Thursday? - Tesla (NASDAQ:TSLA)
TeslaTesla(US:TSLA) Benzinga·2025-11-13 17:32

Core Viewpoint - Tesla Inc. is facing a nationwide recall of approximately 10,500 Powerwall 2 energy storage systems due to overheating and fire risks, as identified by U.S. safety regulators [1][2][3] Group 1: Recall Details - The recall affects specific Powerwall 2 AC battery systems that may pose overheating and fire hazards [1][2] - The U.S. Consumer Product Safety Commission reported that lithium-ion cells in these units could fail during normal operation, leading to overheating, smoke emission, or ignition [2][3] - A total of 22 overheating incidents have been documented, including five cases involving flames, although no injuries have been reported [3] Group 2: Affected Units and Actions - The affected batteries were sold online through Tesla's website and installed by certified providers between late 2020 and the end of 2022 [3] - Tesla has initiated a temporary measure by remotely discharging energy from impacted systems to prevent elevated temperatures [4] - The recall notice mandates that all affected batteries must be replaced, with the units manufactured in the United States [4] Group 3: Market Reaction - Following the recall announcement, Tesla's stock (TSLA) dropped by 6.25%, trading at $403.70 [4]