Tesla FSD Owners Face Hardware 3 Limitations

Tesla CEO Elon Musk announced that vehicles equipped with previous-generation Hardware 3 computers, shipped before 2023, will not be capable of achieving fully unsupervised Full Self-Driving (FSD) [1]. This statement marks a significant shift for long-time Tesla owners who paid thousands for FSD under the impression their vehicles had the necessary technology for full autonomy, with some owners feeling misled by the company's prior assurances [1].

FSD Capabilities and Owner Reactions

Musk stated on an earnings call that "Hardware 3 simply does not have the capability to achieve unsupervised FSD" [1]. Tesla plans to offer Hardware 3 owners a "discounted trade-in" or a physical replacement of their car's computer and cameras at "micro factories" in major cities [1]. This contradicts earlier statements, including a 2016 marketing claim that all Tesla vehicles had the necessary hardware for "full self-driving capability" and a 2019 tweet from Musk that vehicles produced since 2016 were "trivially upgradeable" for FSD [1].

Some owners, like Andrew Apperley, who bought a 2018 Model 3 with FSD for $53,000 in 2023, described the situation as a "bait and switch" [1]. Rick Flashman, who paid $10,000 for FSD in 2022 for his Model 3, uses FSD for over 90% of his driving and is satisfied with its current limited capabilities, despite his car having 73,000 miles [1]. He is willing to wait for a promised overhaul, though he wishes it were sooner [1]. Conversely, Matt Simmons, who added FSD for $6,000 to his 2019 Model 3 Performance, rarely uses the feature, finding it "sucks" due to issues with speed control on highways [1]. Simmons was not surprised by Musk's comments, citing a history of ambitious self-driving predictions that have not fully materialized [1].

Hardware 3 vehicles in the US currently run a more limited version of FSD [1]. Tesla recently received approval to launch FSD in the Netherlands, marking its European debut, but this rollout excluded Hardware 3 owners [1]. This exclusion prompted Mischa Sigtermans, who paid 6,400 euros ($7,530) for FSD in 2019, to create a website to organize European Tesla owners for potential legal action, with nearly 4,000 verified owners signing up [1]. Sigtermans views Musk's admission as confirmation of long-held fears, arguing that a discounted trade-in would make owners "pay for the same broken promise twice" [1]. Tesla is already facing multiple lawsuits in the US from owners alleging misleading FSD marketing [1].

Driving Experience of the Model 3

The Model 3, first driven in 2017, was noted for its minimalist interior, featuring a single 15-inch display at the center of the car for all essential information, climate controls, and input mechanisms [2, 3]. The absence of traditional gauges behind the steering wheel creates an expansive view of the road [2, 3]. Controls are managed via the touchscreen or two scroll wheels on the steering wheel [2, 3]. The car accelerates from 0 to 60 mph in 5.6 seconds [2]. Reviewers described the driving experience as capable and fun for its price range, with confident braking and decent cornering [2, 3]. The car uses a phone app as a key, with a credit card key for valets [2].

What to watch

• Hardware 3 upgrade options: Monitor the details of Tesla's "discounted trade-in" and physical computer/camera replacement programs for Hardware 3 owners [1].
• FSD version 14 "lite" rollout: Tesla plans to release a "lite" variant of FSD version 14 for older vehicles in June [1].
• Legal actions: Observe the progress of existing lawsuits in the US and potential legal actions in Europe from Hardware 3 owners [1].

The divergence between Tesla's past FSD promises and current hardware limitations raises questions about customer trust and the company's strategy for autonomous driving development across its installed vehicle base.