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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.
Tesla stock (NASDAQ: TSLA) closed at an all-time high on Tuesday, jumping over 3 percent during the day and finishing at $489.88.
The price beats the previous record close, which was $479.86.
Shares have had a crazy year, dipping more than 40 percent from the start of the year. The stock then started to recover once again around late April, when its price started to climb back up from the low $200 level.
This week, Tesla started to climb toward its highest levels ever, as it was revealed on Sunday that the company was testing driverless Robotaxis in Austin. The spike in value pushed the company’s valuation to $1.63 trillion.
Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing
It is the seventh-most valuable company on the market currently, trailing Nvidia, Apple, Alphabet (Google), Microsoft, Amazon, and Meta.
Shares closed up $14.57 today, up over 3 percent.
The stock has gone through a lot this year, as previously mentioned. Shares tumbled in Q1 due to CEO Elon Musk’s involvement with the Department of Government Efficiency (DOGE), which pulled his attention away from his companies and left a major overhang on their valuations.
However, things started to rebound halfway through the year, and as the government started to phase out the $7,500 tax credit, demand spiked as consumers tried to take advantage of it.
Q3 deliveries were the highest in company history, and Tesla responded to the loss of the tax credit with the launch of the Model 3 and Model Y Standard.
Additionally, analysts have announced high expectations this week for the company on Wall Street as Robotaxi continues to be the focus. With autonomy within Tesla’s sights, things are moving in the direction of Robotaxi being a major catalyst for growth on the Street in the coming year.
Elon Musk
Tesla needs to come through on this one Robotaxi metric, analyst says
“We think the key focus from here will be how fast Tesla can scale driverless operations (including if Tesla’s approach to software/hardware allows it to scale significantly faster than competitors, as the company has argued), and on profitability.”
Tesla needs to come through on this one Robotaxi metric, Mark Delaney of Goldman Sachs says.
Tesla is in the process of rolling out its Robotaxi platform to areas outside of Austin and the California Bay Area. It has plans to launch in five additional cities, including Houston, Dallas, Miami, Las Vegas, and Phoenix.
However, the company’s expansion is not what the focus needs to be, according to Delaney. It’s the speed of deployment.
The analyst said:
“We think the key focus from here will be how fast Tesla can scale driverless operations (including if Tesla’s approach to software/hardware allows it to scale significantly faster than competitors, as the company has argued), and on profitability.”
Profitability will come as the Robotaxi fleet expands. Making that money will be dependent on when Tesla can initiate rides in more areas, giving more customers access to the program.
There are some additional things that the company needs to make happen ahead of the major Robotaxi expansion, one of those things is launching driverless rides in Austin, the first city in which it launched the program.
This week, Tesla started testing driverless Robotaxi rides in Austin, as two different Model Y units were spotted with no occupants, a huge step in the company’s plans for the ride-sharing platform.
Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing
CEO Elon Musk has been hoping to remove Safety Monitors from Robotaxis in Austin for several months, first mentioning the plan to have them out by the end of 2025 in September. He confirmed on Sunday that Tesla had officially removed vehicle occupants and started testing truly unsupervised rides.
Although Safety Monitors in Austin have been sitting in the passenger’s seat, they have still had the ability to override things in case of an emergency. After all, the ultimate goal was safety and avoiding any accidents or injuries.
Goldman Sachs reiterated its ‘Neutral’ rating and its $400 price target. Delaney said, “Tesla is making progress with its autonomous technology,” and recent developments make it evident that this is true.
Investor's Corner
Tesla gets bold Robotaxi prediction from Wall Street firm
Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.
Tesla (NASDAQ: TSLA) received a bold Robotaxi prediction from Morgan Stanley, which anticipates a dramatic increase in the size of the company’s autonomous ride-hailing suite in the coming years.
Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.
Percoco dug into the Robotaxi fleet and its expansion in the coming years in his latest note, released on Tuesday. The firm expects Tesla to increase the Robotaxi fleet size to 1,000 vehicles in 2026. However, that’s small-scale compared to what they expect from Tesla in a decade.
Tesla expands Robotaxi app access once again, this time on a global scale
By 2035, Morgan Stanley believes there will be one million Robotaxis on the road across multiple cities, a major jump and a considerable fleet size. We assume this means the fleet of vehicles Tesla will operate internally, and not including passenger-owned vehicles that could be added through software updates.
He also listed three specific catalysts that investors should pay attention to, as these will represent the company being on track to achieve its Robotaxi dreams:
- Opening Robotaxi to the public without a Safety Monitor. Timing is unclear, but it appears that Tesla is getting closer by the day.
- Improvement in safety metrics without the Safety Monitor. Tesla’s ability to improve its safety metrics as it scales miles driven without the Safety Monitor is imperative as it looks to scale in new states and cities in 2026.
- Cybercab start of production, targeted for April 2026. Tesla’s Cybercab is a purpose-built vehicle (no steering wheel or pedals, only two seats) that is expected to be produced through its state-of-the-art unboxed manufacturing process, offering further cost reductions and thus accelerating adoption over time.
Robotaxi stands to be one of Tesla’s most significant revenue contributors, especially as the company plans to continue expanding its ride-hailing service across the world in the coming years.
Its current deployment strategy is controlled and conservative to avoid any drastic and potentially program-ruining incidents.
So far, the program, which is active in Austin and the California Bay Area, has been widely successful.
Tesla stock closes at all-time high on heels of Robotaxi progress
Tesla needs to come through on this one Robotaxi metric, analyst says
