Technical

Srinivasa Reddy Kandi: Elon Musk acknowledges Tesla’s Full Self-Driving promise may require major hardware upgrades

April, 23, 2026-04:18

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Elon Musk acknowledges Tesla’s Full Self-Driving promise may require major hardware upgrades:

Tesla CEO Elon Musk revealed that millions of Tesla vehicles will need significant hardware upgrades to support a future version of the company’s Full Self-Driving (FSD) system that operates without human supervision. This marks a shift from earlier assurances that existing vehicles would achieve full autonomy through software updates alone.

During a recent earnings call, Musk explained that cars equipped with Tesla’s “Hardware 3” system — sold between 2019 and 2023 — will require new onboard computers and upgraded cameras to handle more advanced autonomous capabilities. He also noted that implementing these upgrades at scale would be challenging, prompting Tesla to consider setting up specialized “micro-factories” in major cities to speed up the process and reduce pressure on service centers.

For years, Tesla customers have sought clarity on whether their vehicles would be capable of running future versions of FSD. Musk had previously acknowledged in early 2025 that Hardware 3 would not be sufficient for the most advanced features, and reiterated that the company would need to replace key components for customers who had already purchased the FSD package.

The development could expose Tesla to potential legal scrutiny, as many buyers invested in the technology with the expectation that their vehicles were already equipped for eventual full autonomy through simple software updates.

Author: Kandi Srinivasa Reddy, Srinivasa Reddy Kandi, #KandiSrinivasaReddy, #SrinivasaReddyKandi