The upgrade path for Tesla owners who purchased full self-driving software but have older cars is proving to be messy and complicated.
To take full advantage of the software package that some Tesla owners paid up to $15,000 for, some EV owners will need newer hardware that cannot be easily added. That could mean a trade-in or a computer and camera replacement at new microfactories across the country, according to Elon Musk.
Musk discussed the options during the Tesla Q1 2026 earnings call, telling investors that because of limitations in the hardware for Tesla vehicles labeled HW3 (Hardware 3), those who bought FSD will need a hardware upgrade. The company began transitioning away from HW3 to its next hardware version, AI4 (also known as HW4), in early 2023.
“Unfortunately, HW3 simply does not have the capability to achieve unsupervised FSD,” Musk said in the call. “For customers that have bought FSD, what we’re offering
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