Tesla could fix millions of vehicles or pay up for broken promises
Nearly 10 years ago, Tesla CEO Elon Musk claimed that the brand’s then-new vehicles would have the necessary hardware for full self-driving (FSD). Here we are, in 2025, and the brand’s HW3 computers aren’t up to the task of enabling Tesla vehicles to achieve level four or five self-driving. Now, Musk says Tesla might have to upgrade the HW3 computers, a feature in around four million of the automaker’s vehicles from 2019 to 2023.
Tesla will replace the computer responsible for self-driving functions in 4 million vehicles– or compensate the owners
Elon Musk has made some ambitious claims over the years. One of those claims was that every new Tesla from 2016 on would have “all the hardware necessary for full self-driving.” Back in 2016, FSD suites functioned with Hardware 2.5 (HW2.5) computers. But it didn’t take long for Tesla to acknowledge that the HW2.5 wasn’t up to the task of full self-driving.
Today, most Teslas on the road use HW3 and HW4 computers for their self-driving functions. The hardware might be different, but the story remains the same. Musk walked back expectations that the HW3 would be sufficient for unsupervised full self-driving earlier this year. Around that same timeframe, Musk said that Tesla would update FSD-equipped HW3 vehicles.
“I mean, I think the honest answer is that we’re going to have to upgrade people’s Hardware 3 computer for those that have bought full self-driving, and that is the honest answer,” Musk said of the proposed HW3 retrofits. “And that’s going to be painful and difficult, but we’ll get it done.”
The Tesla CEO also expressed some gratitude that a limited number of buyers opted for FSD, per Electrek. “Now I’m kind of glad that not that many people bought the FSD package.” What’s more, the proposed retrofit will account for around 500,000 Tesla vehicles with the FSD package. Painful, indeed.
Still, the claim that Tesla will retrofit half a million HW3-equipped EVs is just that: another claim. The electric vehicle automaker can’t simply bury its head in the sand and pretend owners aren’t mad about the broken promises of full self-driving on HW2.5 and HW3 computers. After all, owners have already taken Tesla to court over FSD follies. Tesla may offer compensation in the form of buybacks or upgrades to make things right. But that won’t get the four million HW3 Tesla drivers any closer to unsupervised FSD.