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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.
Elon Musk
Tesla CEO Elon Musk reminds everyone about Roadster’s true meaning
Tesla CEO Elon Musk took to his social media platform X on Sunday to remind everyone that the Roadster’s true meaning is not about company growth or adding dollars to shareholders’ pockets. Sometimes, you just do things because you can.
Following the Roadster’s epic unveiling event last Thursday, skeptics and critics of the company or the project itself came out to say that the vehicle is a pointless project because it is not geared toward growing the company, delivering supreme margins for profitability, nor does it contribute to the big picture of Artificial/Super Intelligence.
But that’s just the thing: Roadster is not meant to be some shareholder dream; it’s meant to be a vehicle that people buy just because it is something awesome, unique, and the first of its kind.
Tesla Roadster: Three configs, one can fly, 0-60 in 0.8 seconds
Musk had to remind those who are skeptical about the Roadster’s importance to the company mission that while it is not a major contributor to Tesla’s long-term goals, it is something that is being built just because it can be:
“Optimus and Cybercab will be the vast majority of Tesla’s value. The only things that will scale to incredible size (K2 and beyond) economically are super intelligence, robots, solar power, and mass to space. And, of course, if you have the first two, the rest will follow. But Roadster is super cool, so we’re doing it anyway.”
Musk has said on many occasions that Optimus would be the project that would make up the vast majority of Tesla’s value in the coming years.
Robotics will be a major focus of Tesla over the coming years, especially as Musk believes Optimus will enable work to be optional for humans and will enable what he calls “High Universal Income.”
Optimus and Cybercab will be the vast majority of Tesla’s value.
The only things that will scale to incredible size (K2 and beyond) economically are super intelligence, robots, solar power and mass to space.
And, of course, if you have the first two, the rest will follow.
But Roadster is super cool, so we’re doing it anyway.
— Elon Musk (@elonmusk) October 18, 2026
Cybercab will be a passive income opportunity for owners, Musk and Tesla have said for a very long time, as a fleet of self-driving vehicles will operate within a ride-hailing Robotaxi service that won’t require a human driver to be present.
Tesla investors are more than enthusiastic about the company’s future projects, at least from a general consensus perspective. However, it is important to note that the Roadster is a fun and cool project that pushes the boundaries of what people thought was possible for an automobile.
What we saw last week was the first true example of a flying car, and despite the backlash about how it might not contribute to Tesla’s grand ambitions, it’s okay to have fun sometimes, too.
Investor's Corner
SpaceX’s biggest earnings test yet lands Tuesday, and Tesla shareholders should be watching
SpaceX reports earnings Tuesday as Wall Street watches AI spending, Starlink growth and Tesla merger
SpaceX reports third quarter results after the market closes Tuesday, with a webcast at 4:30 p.m. ET streamed on X, and Tesla follows a day later. Bloomberg consensus, cited by Pepperstone, calls for revenue of $12.89 billion, adjusted EBITDA of $6.62 billion and adjusted EPS near $0.15. That would be about 65% growth from the second quarter and SpaceX’s first profitable quarter since its IPO. Analysts expect roughly $6.4 billion from AI and $4.9 billion from Starlink, which is projected to reach 14.3 million consumer subscribers. Capital spending is forecast at $19.6 billion, leaving free cash flow near negative $11.6 billion.
The numbers matter because SpaceX has spent months trying to win over a skeptical market. It priced its record IPO at $135, spiked to $225.64, then sank near $105 in early August. Friday’s close of $146.03 sits about 28% below the June high. The Q2 report beat on revenue at $7.8 billion and put Starlink at 12 million subscribers, but $18.4 billion of capex hurt the stock. Since then SpaceX reached orbit on Starship Flight 14 with 26 Starlink V3 satellites, agreed to buy 800 MHz spectrum for about $8 billion as part of its Starlink Mobile push, and signed a fourth compute hosting deal in four months worth roughly $13 billion a year from December. Management is targeting more than 2 gigawatts of compute by year end and a $100 billion annualized revenue run rate. Evercore ISI, which raised its target to $275, said the quarter may be judged more on those targets than the reported figures
All of this sits under the Tesla merger question. Barclays analyst Dan Levy expects an all stock deal in which SpaceX buys Tesla at a premium, using reference values of $2.1 trillion and $1.5 trillion, and said an announcement would need to come by late October or early November to be voted on at Tesla’s December 6 annual meeting. Barclays estimates Musk would hold about 37% of the combined company and 56% of the votes. Musk said in July that combining companies cannot be discussed on an earnings call, but an investor question asking when SpaceX will merge with Tesla is sitting on SpaceX’s Q&A platform, and Teslarati has tracked how the Roadster demo revived the talk.
If a deal happens, Tuesday’s result would effectively set the price Tesla holders would receive. Their shares would convert into SpaceX stock, along with exposure to a company with a heavy investment on AI, while Tesla itself expects 2026 capex above $25 billion. A strong quarter and calmer spending would make that exchange easier to sell. Another round of heavy capex and a falling stock would make it harder.
News
SpaceX’s Gwynne Shotwell just made a quiet gesture toward Tesla
SpaceX president Gwynne Shotwell quietly followed Tesla on X, and merger watchers noticed right away.
SpaceX President and COO Gwynne Shotwell has started following Tesla’s official account on X, a small change that landed in the middle of a very loud merger conversation. Whole Mars Catalog joked about it on Sunday.
A follow is not an announcement, and neither company has said anything about a deal. What gives the moment weight is the timing. Barclays analyst Dan Levy has told clients that an agreement could come before Tesla’s annual meeting, which must be held by December 6, with SpaceX as the buyer in an all stock deal, as we reported after the Roadster unveiling. Wedbush’s Dan Ives has stuck with a 2027 timeline.
“Shit, I better start following their X account if i’m gonna be helping run the company”
— Whole Mars Catalog (@wholemars) October 18, 2026
Shotwell is the executive most worth watching if the two companies do move closer. When Musk was asked at the All In Summit why Tesla and SpaceX remain separate, Shotwell sat next to him and said SpaceX personnel had already moved into xAI to fill leadership and engineering gaps. The businesses were integrating “faster than I thought,” she said, though “not fully integrated yet.” Her responsibilities have also grown since SpaceX absorbed xAI, and she now oversees operations that include Grok and the company’s AI compute buildout.
The financial links are already there. Tesla’s $2 billion xAI investment turned into a stake of less than one percent in SpaceX, the two share the Terafab chip project in Austin, and Musk exercised his 2018 Tesla options a week after SpaceX began trading, a sequence analysts flagged as giving SpaceX public shares to use in a deal. Musk holds about 20 percent of Tesla and controls 85.1 percent of SpaceX’s voting power, according to our earlier breakdown.
The next test is close at hand. SpaceX reports its second earnings as a public company on Tuesday after the close, and Tesla follows on Wednesday. Musk told analysts in July that “we can’t talk about combining companies and that kind of thing on an earnings call,” so a direct answer is unlikely from either stage. Tesla shareholders can still submit and vote on questions through the Say portal until 4 p.m. EDT on Monday, and the merger is a recurring theme in the queue.