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Tesla owner upgrades Autopilot 2.5 to 3.0 Hardware: Cost, results, and more
Back in October 2018, Elon Musk stated on Twitter that Tesla owners with HW2.5 vehicles who purchased the Full Self-Driving suite will be receiving a free upgrade to the company’s custom-designed, homegrown HW3 Autopilot computer. Today, Tesla appears to be staying true to the CEO’s word, as recently shared by a Model X owner from Canada.
A Tesla Model X P100D owner who runs the Electric Dreams channel on YouTube recently received the company’s latest iteration of its V10 software. Being equipped with Hardware 2.5, the Model X was not able to take advantage of some new features that were rolled out by the electric car maker, such as the company’s updated driving visualizations improvements.
This was a bit disappointing for the Model X owner, especially since his vehicle was equipped with Tesla’s Full Self-Driving suite. With this, the owner-enthusiast opted to schedule a home visit from a Tesla Mobile Service technician. The request: to conduct a retrofit that would replace the Model X P100D’s HW2.5 computer with Tesla’s newer, more powerful, custom-designed HW3 FSD unit.
Commenting on the experience, the Tesla owner noted that he was not really expecting Tesla to respond to his request, but much to his pleasant surprise, an appointment was indeed processed. After signing some documents, it did not take long before a member of Tesla’s Mobile Service Team drove over to the Model X owner’s house to conduct a HW2.5 to HW3 retrofit on the all-electric SUV.
Unfortunately, the Model X owner was informed that no videos were allowed during the entire HW3 retrofit process. Nevertheless, images taken by the Electric Dreams host during the new Autopilot computer’s installation show that Tesla’s HW3 does seem more robust than the NVIDIA-powered HW2.5, with its large radiators and somewhat heftier look. It took around an hour and a half for the installation to be completed and an additional two hours for the necessary firmware to be loaded into the vehicle.
After this was completed, the Model X P100D was updated once more with Tesla’s latest software. And sure enough, features that were unavailable prior to the HW2.5 to HW3 retrofit, such as V10’s driving visualizations improvements, were now enabled. Overall, it appears that Tesla’s HW3 retrofits for Model S and Model X owners who purchased the FSD suite seem to be ongoing now, and true to Elon Musk’s words, the process is completely painless. The entire upgrade was free as well, as indicated by the $0 charge for the HW3 installation.
Yet, perhaps the best thing here really is the sheer convenience of the entire retrofit process. Back in September, Tesla owner-enthusiast Sofiaan Fraval noted on Twitter that his Model S received a HW3 retrofit when he paid a visit to the service center. If the Electric Dreams channel host’s video is any indication, it appears that retrofits are now being conducted by Tesla’s Mobile Service team, and they are also available on demand.
This ultimately bodes well for Tesla’s rollout of its Full Self-Driving suite. Musk, after all, has stated that the company will push HW3 retrofits when FSD features actually warrant the additional computing power of the custom-built Autopilot unit. This was explained by Musk in a tweet back in March. “Retrofits will start when our software is able to take meaningful advantage of the Tesla FSD computer, which is an order of magnitude more capable. For now, it’s slightly disadvantageous to have Tesla FSD computer as our software is more refined for HW2,” Musk wrote.
Considering the company’s rollout of new FSD features such as Smart Summon, it appears that HW3’s additional computing power is now becoming more useful for Tesla’s advanced capabilities.
Watch Electric Dreams‘ video about his Model X P100D’s HW2.5 to HW3 retrofit in the video below.
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Tesla stands to gain from Ford’s decision to ditch large EVs
Tesla is perhaps the biggest beneficiary of Ford’s decision, especially as it will no longer have to deal with the sole pure EV pickup that outsold it from time to time: the F-150 Lightning.
Ford’s recent decision to abandon production of the all-electric Ford F-150 Lightning after the 2025 model year should yield some advantages for Tesla.
The Detroit-based automaker’s pivot away from large EVs and toward hybrids and extended-range EVs that come with a gas generator is proof that sustainable powertrains are easy on paper, but hard in reality.
Tesla is perhaps the biggest beneficiary of Ford’s decision, especially as it will no longer have to deal with the sole pure EV pickup that outsold it from time to time: the F-150 Lightning.
Here’s why:
Reduced Competition in the Electric Pickup Segment
The F-150 Lightning was the Tesla Cybertruck’s primary and direct rival in the full-size electric pickup market in the United States. With Ford’s decision to end pure EV production of its best-selling truck’s electric version and shifting to hybrids/EREVs, the Cybertruck faces significantly less competition.
Credit: Tesla
This could drive more fleet and retail buyers toward the Cybertruck, especially those committed to fully electric vehicles without a gas generator backup.
Strengthened Market Leadership and Brand Perception in Pure EVs
Ford’s pullback from large EVs–citing unprofitability and lack of demand for EVs of that size–highlights the challenges legacy automakers face in scaling profitable battery-electric vehicles.
Tesla, as the established leader with efficient production and vertical integration, benefits from reinforced perception as the most viable and committed pure EV manufacturer.
Credit: Tesla
This can boost consumer confidence in Tesla’s long-term ecosystem over competitors retreating to hybrids. With Ford making this move, it is totally reasonable that some car buyers could be reluctant to buy from other legacy automakers.
Profitability is a key reason companies build cars; they’re businesses, and they’re there to make money.
However, Ford’s new strategy could plant a seed in the head of some who plan to buy from companies like General Motors, Stellantis, or others, who could have second thoughts. With this backtrack in EVs, other things, like less education on these specific vehicles to technicians, could make repairs more costly and tougher to schedule.
Potential Increases in Market Share for Large EVs
Interestingly, this could play right into the hands of Tesla fans who have been asking for the company to make a larger EV, specifically a full-size SUV.
Customers seeking large, high-capability electric trucks or SUVs could now look to Tesla for its Cybertruck or potentially a future vehicle release, which the company has hinted at on several occasions this year.
With Ford reallocating resources away from large pure EVs and taking a $19.5 billion charge, Tesla stands to capture a larger slice of the remaining demand in this segment without a major U.S. competitor aggressively pursuing it.
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Ford cancels all-electric F-150 Lightning, announces $19.5 billion in charges
“Rather than spending billions more on large EVs that now have no path to profitability, we are allocating that money into higher returning areas, more trucks and van hybrids, extended range electric vehicles, affordable EVs, and entirely new opportunities like energy storage.”
Ford is canceling the all-electric F-150 Lightning and also announced it would take a $19.5 billion charge as it aims to quickly restructure its strategy regarding electrification efforts, a massive blow for the Detroit-based company that was once one of the most gung-ho on transitioning to EVs.
The announcement comes as the writing on the wall seemed to get bolder and more identifiable. Ford was bleeding money in EVs and, although it had a lot of success with the all-electric Lightning, it is aiming to push its efforts elsewhere.
It will also restructure its entire strategy on EVs, and the Lightning is not the only vehicle getting the boot. The T3 pickup, a long-awaited vehicle that was developed in part of a skunkworks program, is also no longer in the company’s plans.
Instead of continuing on with its large EVs, it will now shift its focus to hybrids and “extended-range EVs,” which will have an onboard gasoline engine to increase traveling distance, according to the Wall Street Journal.
“Ford no longer plans to produce select larger electric vehicles where the business case has eroded due to lower-than-expected demand, high costs, and regulatory changes,” the company said in a statement.
🚨 Ford has announced it is discontinuing production of the F-150 Lightning, as it plans to report a charge of $19.5 billion in special items.
The Lightning will still be produced, but instead with a gas generator that will give it over 700 miles of range.
“Ford no longer… pic.twitter.com/ZttZ66SDHL
— TESLARATI (@Teslarati) December 15, 2025
While unfortunate, especially because the Lightning was a fantastic electric truck, Ford is ultimately a business, and a business needs to make money.
Ford has lost $13 billion on its EV business since 2023, and company executives are more than aware that they gave it plenty of time to flourish.
Andrew Frick, President of Ford, said:
“Rather than spending billions more on large EVs that now have no path to profitability, we are allocating that money into higher returning areas, more trucks and van hybrids, extended range electric vehicles, affordable EVs, and entirely new opportunities like energy storage.”
CEO Jim Farley also commented on the decision:
“Instead of plowing billions into the future knowing these large EVs will never make money, we are pivoting.”
Farley also said that the company now knows enough about the U.S. market “where we have a lot more certainty in this second inning.”
SpaceX employees, including its CEO Elon Musk, shaded American Airlines on social media this past weekend due to the company’s reported talks with Amazon’s Starlink rival, Leo.
Starlink has been adopted by several airlines, including United Airlines, Qatar Airways, Hawaiian Airlines, WestJet, Air France, airBaltic, and others. It has gained notoriety as an extremely solid, dependable, and reliable option for airline travel, as traditional options frequently cause users to lose connection to the internet.
Many airlines have made the switch, while others continue to mull the options available to them. American Airlines is one of them.
A report from Bloomberg indicates the airline is thinking of going with a Starlink rival owned by Amazon, called Leo. It was previously referred to as Project Kuiper.
American CEO Robert Isom said (via Bloomberg):
“While there’s Starlink, there are other low-Earth-orbit satellite opportunities that we can look at. We’re making sure that American is going to have what our customers need.”
Isom also said American has been in touch with Amazon about installing Leo on its aircraft, but he would not reveal the status of any discussions with the company.
The report caught the attention of Michael Nicolls, the Vice President of Starlink Engineering at SpaceX, who said:
“Only fly on airlines with good connectivity… and only one source of good connectivity at the moment…”
CEO Elon Musk replied to Nicolls by stating that American Airlines risks losing “a lot of customers if their connectivity solution fails.”
American Airlines will lose a lot of customers if their connectivity solution fails
— Elon Musk (@elonmusk) December 14, 2025
There are over 8,000 Starlink satellites in orbit currently, offering internet coverage in over 150 countries and territories globally. SpaceX expands its array of satellites nearly every week with launches from California and Florida, aiming to offer internet access to everyone across the globe.
Currently, the company is focusing on expanding into new markets, such as Africa and Asia.
Tesla stands to gain from Ford’s decision to ditch large EVs
Ford cancels all-electric F-150 Lightning, announces $19.5 billion in charges
