The ACCC issued a product recall of a Tesla battery after reports they can overheat and catch fire.
The Tesla Powerwall 2 is a battery system for residential or light commercial use, and has a lithium-ion battery pack that is rechargeable and can store energy for solar use and backup.
However, Tesla said they have found some lithium-ion battery cells from a third-party supplier in some Powerwall 2 systems could fail and overheat.
Soem unites of the Tesla Powerwall 2 have been hit by a recall notice in Australia. (Fairfax Media)
Reports have been received of smoke being emitted and even bursting into flames.
There have been reports of some property damage, but no injuries have been reported as a result of the failures.
The recall notice said most affected units have already been remotely discharged, but there is still a risk of overheating that could cause serious injury or death if they catch fire.
The Tesla Powerwall 2 (ACCC)
Consumers have been told to check if their system is online and impacted by the defect, which they can do by accessing the Tesla app.
Tesla will automatically discharge affected units as a precautionary measure until a replacement can be found and installed.
These will be replaced free of charge to the customer, and Tesla said they will also consider compensation for any lost energy savings from discharged systems.
However, this will be done on a case-by-case basis.