✅ Confirmed FSD FSD

Tesla has no concrete plan to upgrade Hardware 3 for promised FSD

📍 Electrek

During Tesla’s Q2 2026 earnings call, Elon Musk confirmed the company lacks a defined plan to upgrade Hardware 3 (HW3) vehicles to run the latest Full Self-Driving (FSD) software. Musk mentioned options like upgrading to Hardware 4, an improved AI4, or the future AI5, but without clear timelines or commitments. Tesla sold millions of cars with HW3 claiming they had the necessary hardware for FSD, but now acknowledges HW3 cannot achieve unsupervised FSD. The logistics and cost of a large-scale retrofit remain a significant unresolved challenge.

🔎 Why it matters: The absence of a concrete plan to upgrade HW3 affects millions of vehicles sold with the FSD promise, with Musk specifically mentioning the AI5 version not yet in production.
📈 Upside: Not applicable.
📉 Risk: Mass retrofitting HW3 is logistically complex and could overwhelm Tesla’s service network.
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