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Tesla Owners May Need to Visit New Microfactories to Update Full Self-Driving

Musk said millions of owners will need discounted upgrades because Hardware 3 lacks the computing power for unsupervised Full Self-Driving.

  • On Wednesday, CEO Elon Musk confirmed that vehicles with Hardware 3 require new computers and cameras to achieve unsupervised Full Self-Driving, contradicting years of company promises.
  • Musk explained that Hardware 3 lacks capacity for unsupervised FSD, possessing only '1/8 of the memory bandwidth of Hardware 4,' a critical element for autonomous operation.
  • To manage this 'painful and difficult' upgrade, Tesla plans to build 'small factories in major metropolitan areas' rather than relying on inefficient service centers to install the new parts.
  • Customers who purchased Full Self-Driving expecting future autonomy face a complex transition, as Musk announced a 'discounted trade-in' program for vehicles equipped with newer AI4 hardware.
  • While Tesla will still release slightly more advanced software to Hardware 3 owners, Musk admitted that achieving the 'as-yet unrealized dream' of fully autonomous driving remains impossible.
Insights by Ground AI

16 Articles

Right

The billionaire admitted defeat, but promised a solution.

·Budapest, Hungary
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Lean Left

For years, paying customers have been waiting for promised features, but the on-board computer is too weak.

·Vienna, Austria
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TechCrunch broke the news in United States on Wednesday, April 22, 2026.
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