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The Tesla MCU1 conundrum: How early FSD adopters were left behind in limbo

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5 years ago

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When Tesla started selling Full Self-Driving back in 2016, the company was in a far different place than where it is today. Back then, Tesla was not the most valuable carmaker by market cap, nor was it a tried and tested business that no longer needs credits to become profitable on a quarterly basis. Back then, believing in Tesla and its promises for innovative tech was not something that was done lightly. 

Back then, it took a leap of faith. 

And that was exactly what a number of Tesla Model S and Model X owners did. With Elon Musk and Tesla noting that every vehicle produced at the time had the necessary hardware to achieve autonomous driving, a good number of Model S and Model X owners decided to go all-in on the promise that achieving self-driving was just a matter of software. And if it turns out that it wasn’t, Tesla would ensure that early adopters would get the hardware necessary to make their vehicles on par with the company’s newer, more advanced cars. 

This promise has not been granted by Tesla — at least not fully — and a good number of early FSD adopters, who were the first to put their faith in the company and its autonomous driving program, have now found themselves in a limbo of sorts. A limbo that now involves an aging vehicle, a fully paid Full Self-Driving suite, and what is starting to seem like a path to FSD that is blocked by the company’s old MCU1 unit, which happens to be linked to a recall of about 130,000 Model S and Model X earlier this year.

An FSD Limbo

The Tesla Model S and Model X were still fitted with MCU1 units when the company started selling FSD. By this time, Tesla’s reputation as a producer of the best electric vehicles in the market was already established. It was then no surprise that when the company debuted its first FSD demo in 2016, numerous Model S and Model X owners were all too willing to support Tesla. 

“I bought my Model S in 2017 based on their advertising claiming that it had the necessary hardware for self-driving. Tesla advertised that I would get true L5 autonomy. (The ad) also stated ‘The person in the driver’s seat is only there for legal reasons. He is not doing anything. The car is driving itself,’” a longtime Tesla owner told Teslarati in a statement. The Model S owner added that he initially purchased Enhanced Autopilot for $5,000, but he later bought FSD for an additional $5,000 last year when Elon Musk noted that he was confident that complete autonomy was on hand. 

Tesla is a company built on rapid innovation. Over the years, Tesla has gained a reputation as a carmaker that rolls out improvements as soon as they are available. Unlike traditional automakers that typically wait a year before introducing minor updates to their vehicles, Tesla improves its electric cars through over-the-air software updates. But Tesla had also implemented hardware changes in the past, such as when the company started the rollout of its MCU2 units in March 2018. The company also updated its Autopilot computer from Hardware 2.0 to Hardware 2.5, and later, to Hardware 3.0. 

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Elon Musk, for his part, has assured FSD buyers that their vehicles would have the necessary hardware when Tesla achieves full autonomy. And to some degree, Musk has stayed true to his word. Owners of older vehicles that purchased FSD were provided a free upgrade to Hardware 3.0. Tesla, however, has introduced its MCU1 to MCU2 retrofit as a paid upgrade. Quite unsurprisingly, some early FSD adopters opted out of the optional infotainment system update. This has proven to be problematic. 

Apparent MCU1 Limitations

As Tesla started rolling out more advanced features, vehicles equipped with MCU1 units started getting left out of key functions like Sentry Mode and Tesla Theater. Enhanced driving visualizations were also available only on vehicles that were fitted with MCU2 units. It was over this period that early FSD adopters found themselves steadily getting left behind. New features would be introduced, but they would be focused on MCU2 cars. Software updates were frequently rolled out to the fleet, but not for MCU1 vehicles. This was highlighted by a Tesla Model S 75 owner who purchased FSD, and who shared a photo with Teslarati showing that his vehicle is still running 2020 firmware despite the car stating that its software was up to date. 

An early Model S equipped with FSD and an MCU1 unit. Note the vehicle’s 2020 software. (Credit: Teslarati)

The Model S 75 owner’s experience is not unique. Over the course of this article’s research, Teslarati has received similar stories from early FSD adopters. A longtime electric vehicle advocate who purchased a Model S 100D with Enhanced Autopilot and Full Self-Driving described his current ownership experience as similar to having a device that is no longer supported. 

“In the recent past, I have not even had 2021 firmware update as if my car is already unsupported before all the features promised are delivered. I was hoping to get FSD Beta, but that feature has not been demonstrated for my configuration by anyone, so far and no communication from Tesla on exactly when we can expect our car to participate in this to provide feedback,” the Model S 100D owner wrote. 

While Tesla may be quite silent on whether its older MCU1 units are indeed the culprit behind the less-than-stellar ownership experience of FSD’s early adopters, those who have owned multiple Teslas over the years have all but confirmed that the aging component seems to be a key issue. One Tesla owner who shared his story with Teslarati noted that his 2017 Model S — which has FSD and whose infotainment system was upgraded to MCU2 — received the “Request FSD Beta” button just fine, but his 2017 Model X — which is still equipped with an MCU1 unit — did not receive anything at all despite having FSD. 

“Now the beta button is finally coming. All the early adopters that paid for FSD were eager to get it. Most people had their computers upgraded by now to the FSD version and were told that is all they needed; it would work fine on MCU1. So the excitement for everyone grew, especially those that had waited the longest. After several delays, the button came. My Model S got the button right away, but it never came for the Model X with MCU1. There was no communication from Tesla at all. No email sent out in advance. All of those people found out through the disappointment of not getting it. Then searching through chat groups, (I discovered) that no one with MCU1 got it. Why can’t Tesla show some respect for these customers and at least communicate in advance?” the veteran Tesla owner told Teslarati. 

Transparency and Understanding

A Tesla Model S 100D purchased with Enhanced Autopilot and Full Self-Driving. The vehicle cost about $100,000 when it was bought. (Credit: Teslarati)

One prevalent theme among the early FSD adopters who contacted Teslarati with their stories was the lack of communication on Tesla’s part. This is something that has been reported by longtime Tesla owners for some time now. And while it is understandable that Tesla is juggling a lot of balls in the air as it expands its business to other countries and other segments, having a responsive communications team, or at least investing some of its funds into the creation of one, would definitely not hurt. 

Tesla owners, particularly early FSD adopters, are more than willing to be understanding of the company’s plight and challenges, after all. In this sense, Tesla would probably be better off behaving more like a company that truly cares for its customers and less like a traditional automaker that is just looking for the next sale. 

Unfortunately, this is something that became a reality for Tesla FSD adopters who purchased vehicles just before March 2018, when the company transitioned its vehicles to MCU2 units. As per a Tesla Model S 75D owner, his order initially had a March 2018 delivery date, but he was encouraged by the company to take an early delivery instead. As a result, he has missed out on numerous features, and he is yet to enjoy some key FSD capabilities that the company has been rolling out as of late. 

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“I have a December 2017 Model S 75D. I had placed an order for it in mid-December with a delivery date of March 2018. Tesla reached out to me just before the end of the year with a vehicle that someone canceled their order on. If I had known that March 2018 vehicles and not December 2017 vehicles would have MCU2, I would have never accepted the other car. I feel like they misled me on my order. 

“I told myself I was okay with it because my original order stated it would be fully capable of FSD. Unfortunately, as years passed, MCU2 vehicles had plenty of extra features, and figured I would eventually get my FSD capabilities anyways. Unfortunately, I am now seeing Model 3, Model Y, and Model S vehicles with orders placed years after me getting capabilities I should have received. Now they are getting FSD Beta, and I am left wondering if I will ever get it with MCU1. I do not wish to spend money on the MCU2 upgrade as they said my vehicle was already capable,” the Model S 75D owner wrote. 

What Elon Musk is Pledging Now

Elon Musk has been made aware of the issue surrounding FSD’s early adopters, and most recently, the CEO noted that early production vehicles would require some camera upgrades to get full access to the FSD Beta. Musk noted that the new cameras, just like HW3.0, were included in Full Self-Driving’s price so retrofits are all but assured. Yet even in the CEO’s recent statements, a reference to the complications that are seemingly caused by the company’s aging MCU1 units was absent.

Years ago, these Tesla owners put their faith in Elon Musk and his vision to achieve Full Self-Driving. And they were given a word. This promise has been met to some degree, but not fully. Details such as the absence of MCU2 units are severely hobbling the experience of Tesla owners that quite literally helped fund the development of Tesla’s growth into a mass market manufacturer and a key player in the autonomous driving sphere. And until the company decides to do something for its early FSD adopters, Tesla would continue to have some of its most loyal customers be subjected to a substandard ownership experience. 

Early Model S and Model X owners are a small fraction of Tesla’s fleet at this point. The number of owners who purchased FSD and are still stuck with MCU1 units is even smaller. The costs to upgrade these owners’ cars would undoubtedly be substantial, but they would likely be marginal for Tesla in the long run, especially with the way the company has been growing year-over-year. Perhaps Tesla could provide complimentary MCU2 retrofits to early FSD buyers when they get their cameras upgraded for free. By doing so, Elon Musk could prove that he is a man of his own word. 

Musk himself said it, after all. He may be late, but he pulls through. Now it’s time to stand by these words. With the rollout of the FSD Beta, Full Self-Driving is closer than ever. Tesla just has to pull through for a group of owners who took that leap of faith when the company announced its intentions to develop a self-driving system.  

Don’t hesitate to contact us with news tips. Just send a message to tips@teslarati.com to give us a heads up.

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Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla Full Self-Driving insurance program with heavy discount expands

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5 hours ago

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August 3, 2026

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Lemonade has expanded its innovative Autonomous Car insurance program to Tennessee, giving Tesla owners in the state a substantial discount on Full Self-Driving (FSD) miles. Announced on August 3, the product offers 50 percent off every mile driven with FSD activated, positioning the digital insurer as a leader in pricing insurance around autonomous technology.

The program, marketed as Lemonade Autonomous Car insurance, uses a direct connection via Tesla’s Fleet API (with customer permission) to automatically distinguish FSD-engaged miles from manual driving. Policyholders pay a low base rate when the vehicle is stationary and a few cents per mile when moving, with the 50 percent reduction applied specifically to FSD miles.

Coverage includes standard protections such as liability, collision, comprehensive, roadside assistance, and Tesla-specific benefits like access to certified repair shops and emergency crash services. Eligible vehicles require Hardware 4, as well as recent firmware.

Lemonade first unveiled the product on January 21 of this year, describing it as a first-of-its-kind offering designed for self-driving cars, starting with Tesla FSD. It began rolling out in Arizona on January 26, followed by Oregon about a month later. Subsequent expansions brought it to Indiana in early June 2026 and Colorado later that month.

Tennessee marks the fifth state.

Tesla Full Self-Driving gets outrageous insurance offer with insanely cheap rates

The discount rests on Lemonade’s strong belief in the safety of Tesla’s FSD system. The company cites Tesla’s data showing that FSD-driven miles are twice as safe as those driven manually, or associated with roughly a 50 percent crash reduction.

Lemonade Co-founder and President Shai Wininger has emphasized this distinction: “Traditional insurers treat a Tesla like any other car, and AI like any other driver. But a car that sees 360 degrees, never gets drowsy, and reacts in milliseconds can’t be compared to a human.”

He added that “Teslas driven with FSD are involved in far fewer accidents” and committed that as FSD software improves and becomes safer, Lemonade’s prices will drop further.

Tesla Full Self-Driving gets an offer to be insured for ‘almost free’

This approach leverages Lemonade’s existing pay-per-mile technology and AI-driven risk models, which analyze nuanced vehicle data including software version and sensor performance. The company expects the model to reward higher FSD usage with greater savings while supporting mixed households that include both Tesla and non-Tesla vehicles under one policy. Bundling with home, renters, or pet insurance can yield additional discounts.

As autonomous driving technology advances, Lemonade’s state-by-state expansion of usage-based pricing that directly reflects real-world safety data represents a notable shift in how insurers evaluate risk.

Tesla owners in the five available states – Arizona, Oregon, Indiana, Colorado, and now Tennessee – can obtain quotes quickly through the Lemonade app or website, potentially lowering the overall cost of ownership for vehicles equipped with advanced driver-assistance systems. Further states are expected as regulatory approvals progress.

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Cybertruck

Tesla quietly made the Cybertruck even stronger

Published

9 hours ago

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August 3, 2026

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Credit: Tesla

Tesla has continued to flex the strength, rigidity, and robustness of its all-electric pickup, the Cybertruck. In fact, since 2019, Cybertruck’s ability to avoid dents, dings, and even gunfire has been one of the main selling points Tesla has used to attract buyers who are looking for a vehicle that can handle the most intense challenges.

But that does not mean Tesla is not still actively trying to make it even better.

In a new hardware update, Tesla has decided to change the material of the Cybertruck’s underbody panels from aluminum to carbon fiber, a move that aims to not only increase pricing efficiency but also improve strength.

RELATED:

Tesla Cybertruck is officially the safest pickup, IIHS says

Cybertruck Lead Engineer Wes Morrill confirmed the change was made to the Cybertruck recently after it was spotted by Coleton Guerin of Out of Spec. This particular trim level was a Cyberbeast, but it is being applied to all trims to keep supply chain efficiency high and have less variance across trim levels.

Morrill said that Tesla tested different materials for the underbody panel protection, and carbon fiber performed better than aluminum, which is what the company was using since its first deliveries in 2023.

Additionally, there are some efficiency improvements because Tesla can better form the areas around the bolts to keep underbody airflow cleaner than previously.

Carbon fiber is traditionally lighter and more durable than aluminum, which is why it is such a popular material among luxury automakers, and EV makers will utilize some of the materials around battery packs to save weight.

This is the first instance of Tesla utilizing carbon fiber on the Cybertruck’s exterior to help with overall performance and strength. As previously mentioned, Tesla used aluminum to protect the underside of the body, but it is pretty typical for the company to continue making engineering changes that will improve the car in the future.

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Tesla Full Self-Driving v14.3.7 early review: FSD saved me from an accident

Published

1 day ago

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August 2, 2026

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Credit: Teslarati

Tesla released Full Self-Driving version 14.3.7 yesterday, and after about 90 miles of testing today, it is evident there are some definite fixes from version 14.3.6, which I wrote about last week and called a regression.

Within the first 40 minutes of my drive on v14.3.7, it saved me from getting into an accident with an unaware Dodge Charger driver, and some of the things Tesla seemed to miss in v14.3.6 were definitely improved. All in all, the release so far has some really great performance, and I’m looking forward to testing it further.

For now, here’s everything I noticed with v14.3.7:

Overall Improvement

Just generally speaking from a ride perspective, this was a really great experience. A lot of the hesitancy I experienced on v14.3.6 was gone. There were no instances of brake-stabbing, wheel-jerking, or any uncertain or unconfident movements. It was void of anything that I felt made it timid with v14.3.6.

The one thing I do hope to see down the road is a smaller need to adjust Speed Profiles so often. Because Tesla calls FSD “Supervised,” I’m okay with needing to hit the scroll wheel a few times a drive.

However, I hope that things can be incrementally improved upon with speed. Sometimes it’s too fast; other times it’s too slow. It’s a difficult thing to hone in and refine, but I hope it eventually gets there.

I didn’t notice any significant left lane camping or any behaviors that were completely out of line. I am hopeful that this opinion does not change, but after driving a few days with this version and putting it in a variety of different situations, you are exposed to more behaviors, some of which are not necessarily what I’d prefer.

The big things to notice, at least in my experience thus far, are that the major issues with previous versions — meaning the braking stabbing and wheel jerking — simply weren’t there. That’s enough to already consider this progress compared to .6.

Manual Signal Override is More Responsive

On .6, I had quite a few issues with FSD ignoring my manually input turn signals. If Tesla wants to call it “Supervised,” then the car should not ignore any input the driver gives. If I touch the accelerator on FSD, the car speeds up.

The car did a great job of obeying my turn signals when I wanted it to change lanes, which is welcome.

Parking Lot Performance

Before .6, I traditionally took over in nearly every parking lot my car entered, because I knew it would not park somewhere that I wanted, and usually, it was just a tad too timid in this setting.

The one bright spot of .6 was how well it handled parking lots. This continued with v14.3.7:

 

I’m always really happy to see progress at all, but once parking preferences come to FSD, as long as this performance is still around, that could potentially be the biggest improvement I’ve seen in FSD in the year I’ve been using it personally on a daily basis.

Full Self-Driving Averts Disaster

A Dodge Charger changed into my lane without checking if I was there, running me off the road. FSD made the initial avoidance maneuver; I grabbed the wheel out of instinct, looked in my side mirror to ensure I had nobody following closely behind, hit the brake, and straightened the car back up to avoid a curb:

There have been quite a few responses to this video stating that I should never have grabbed the wheel. To be honest, I really wish I had not done so, because I do believe FSD would have avoided any sort of collision with anything, including the car or the curb.

However, this was the first time I had ever been this close to being hit while using FSD. My natural reaction was to take over. I think if I had had something like this happen before, my reaction might have been different.

Hitting the brake avoided hitting the curb, while FSD swerved to avoid the car. My concern after the car was clear of my front end was the curb. All in all, I’m really happy with how things turned out, and I think anyone could be a critic of how I handled it. I only had a split second to really make a decision, and thankfully, any damage was avoided.

It is clear FSD managed to avoid the car coming down before I was able to. I truly credit FSD for avoiding the collision.

What Needs to Improve

Better Recognition of Potholes, Uneven Roads, Sharp Changes in Roadway/Bumps

On Friday, my Fianceè and I were in the car, and FSD was driving us. We crossed over a roadway that has a traffic light, and FSD was traveling at 40 MPH on Standard, 5 MPH over the speed limit. Everything was more than reasonable.

However, the road we were crossing at the light has a major bump both as you start and finish crossing it. Without a speed reduction, your car can go airborne. The Tesla did just this on Friday on v14.3.6; it was an uncomfortable bounce that pretty much confirmed I would not ever let FSD go over again unless we were sitting at that intersection when there is a red light.

I even tried scrolling down into Sloth quickly, but I ended up just taking over:

A few people have said it remains related to the vision-based approach and its difficulty comprehending 3D. This is a huge issue because this can cause serious damage at certain speeds.

Navigation

Nothing new here. I still turn off “Online Routing” quite frequently to get the car to take logical routes from time to time.

Auto Wipers

Auto Wipers are just plain bad. I really hope Tesla just uses a rain sensor. I thought they had improved at one point, but I still get dry wipes, Speed 4 on a drizzle, and Speed 2 on a steady rain. In reality, these should be switched.

You can watch our full review of Tesla Full Self-Driving v14.3.7 below:

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