Overview

• Elon Musk stated during Tesla's earnings call that HW3 computers in vehicles with purchased Full Self-Driving (FSD) will need to be replaced to achieve unsupervised autonomy.
• The replacement will be provided at no cost to customers who bought the FSD package, which has ranged in price from $2,000 to $15,000 over the years.
• Tesla previously claimed all vehicles produced since 2016 were capable of Full Self-Driving, but the hardware limitations of HW3 have now been acknowledged.
• The newer HW4, introduced in 2023, has significantly greater capabilities but is not retrofittable to HW3-equipped vehicles, requiring Tesla to develop a new solution.
• The upgrade effort is expected to be logistically challenging and costly, adding to Tesla's growing operational expenses.