For years, Elon Musk insisted that Tesla vehicles built since 2016 were equipped with the hardware needed to enable fully autonomous driving. It was a bold claim that many Tesla owners eagerly embraced, especially those who purchased the Full Self-Driving (FSD) package. However, in a surprising turn of events earlier this year, Musk admitted he had been wrong. Even vehicles that were sold with the promise of autonomous driving as soon as it was available will not be able to fulfill that promise without significant upgrades.
A Major Revelation During a Tesla Shareholder Call
During a recent call with Tesla’s major shareholders, Elon Musk made a stunning admission: the cars equipped with Hardware 3, the system installed in vehicles from 2019 to 2023, won’t be able to run the current autonomous driving software without an upgrade. Musk went so far as to say that the upgrade would be “painful and difficult,” but assured everyone that Tesla would bear the costs of this change.
“I think the most honest answer is that we’ll need to upgrade the Hardware 3 computers of those who purchased the Full Self-Driving option,” Musk said. For those who invested in the FSD package—which cost $12,000 in the U.S.—this news was nothing short of disappointing. After all, many of these buyers were under the impression that they were purchasing a vehicle that would one day handle the driving entirely, once the technology was ready.
Tesla Will Foot the Bill for the Upgrades
Musk has clarified that the transition from Hardware 3 to Hardware 4 will be covered by Tesla, though it’s clear that this will be an expensive undertaking for the company. Tesla is already facing financial pressures and is dealing with increasingly fierce competition, particularly from Chinese automakers. Despite these challenges, Musk remains committed to fulfilling the promises made to Tesla owners, even though it will cost the company millions of dollars to do so.
Musk’s Admission Was Not Entirely Unexpected
Though the announcement shocked some Tesla owners, it wasn’t entirely surprising. For years, Musk has been quick to make bold promises about autonomous driving, often setting timelines that he has failed to meet. Back in 2016, after Tesla ended its partnership with Mobileye and took control of its in-house Autopilot hardware, the company introduced Hardware 2.0. At the time, Musk promised customers that their vehicles would be capable of full autonomy as soon as the technology was ready.
However, it became clear that those promises weren’t going to be kept. When Hardware 3 was rolled out in 2019, owners of Hardware 2.0 and 2.5 vehicles were required to upgrade to Hardware 3 in order to access the autonomous driving software. This led to a legal battle, with one Tesla owner suing the company for false advertising. As a result, Tesla was forced to offer free upgrades to those affected.
Legal and Financial Fallout
Musk’s recent comments make it clear that Tesla is once again trying to manage the fallout from unmet promises. The company has learned from its previous legal issues, but it will still have to spend millions to keep customers satisfied. As of now, the newest Tesla vehicles come with Hardware 4, but the highly anticipated FSD software is still not available. Those who have already paid for the upgrade are left hoping that their vehicles will be ready for the software when it finally arrives.
The Road Ahead for Tesla’s Autonomy Vision
So, is the saga over? Not quite. While Hardware 4 is now available in new cars, Tesla’s promise of fully autonomous driving is still in limbo. FSD remains absent, leaving early buyers of the software package in a frustrating position. As with all of Musk’s ambitious projects, it’s clear that progress is a bit more complex than originally anticipated. While Tesla has made significant strides in autonomous driving technology, it’s still a long road to achieving fully self-driving cars.
As for those Tesla owners who have been patiently waiting for the dream of fully autonomous vehicles, they can only hope that the latest hardware will live up to the promises when the software finally arrives. In the meantime, Tesla remains committed to pushing the boundaries of self-driving technology, but it’s clear that the journey is far from complete.
