News
Tesla FSD buyers in Europe request HW3 clarity after multiple retrofit delays
Austria-based Raffael Helmhart was one of the Tesla Model 3’s early adopters in his area. Placing his reservation for the all-electric sedan back in April 2016, Helmhart waited over three years before he could get behind the wheel of his Model 3. Such a wait was long, but it was somewhat expected considering Tesla’s challenges in producing and delivering the vehicle.
Helmhart ultimately took delivery of his 2019 Model 3 Long Range Dual Motor AWD in May 2019. His vehicle came loaded with the Full Self-Driving suite, which includes some features and the promise of more advanced automated capabilities over time. Perhaps due to his early reservation, Helmhart’s Model 3 came with Hardware 2.5, the iteration of the company’s Autopilot computer that preceded Hardware 3, a custom computer unveiled on Autonomy Day.
Similar to fellow Model 3 buyers in the United States who also purchased the Full Self-Driving suite, Helmhart and his fellow Tesla owners in Europe were promised a HW3 retrofit. Reports of initial Hardware 3 retrofits for Model S and Model X owners in the US were reported by members of the electric vehicle community in the third quarter of 2019. Model 3 owners with HW2.5 were provided the promised HW3 retrofit soon after.
For Model 3 owners in Europe, the story unfortunately turned out quite different. Initially, Tesla’s official website noted that HW2.5 to HW3 retrofits in Europe would be initiated in early March 2020. This date was eventually updated to the end of March 2020, before being moved once more to July 2020. Much to the chagrin of Tesla owners with HW2.5 Model 3s, the date on Tesla’s site for the promised retrofit was later updated to October 2020, and later, to the end of October 2020.
Recently, Tesla’s site was updated once more, and it noted that HW3 retrofits for Model 3 owners with HW2.5 in Europe were expected in Q2 2021.
Needless to say, Tesla Model 3 early adopters in the region who purchased the FSD suite are getting their patience tested. This became particularly notable in Autumn 2020, when Tesla owners in Norway, the Netherlands, and Switzerland received their HW3 upgrade. Model 3 owners in the rest of Europe only received an updated expected retrofit date.
https://twitter.com/tesla_adri/status/1370828412382760960?s=20
As for Helmhart, he eventually opted to sell his 2019 Model 3 to Denmark a few months ago. He opted to switch to a 2021 Model 3, which featured refresh elements like new headlights, a new center console, a heat pump, and of course, HW3. In a statement to Teslarati, the Tesla owner stated that while it is often claimed that the HW3 upgrade doesn’t really do anything in Europe considering the region’s regulations, his experience with his 2021 Model 3 suggests that this may not really be the case.
For one, there are already a number of key features requiring HW3 that are pertinent for Europe-based Tesla owners. One of these is traffic sign recognition, which works even with basic Autopilot. FSD-specific features such as Traffic Light and Stop Sign Control, a key Full Self-Driving feature and a pivotal part of Tesla’s inner-city driving system, is also allowed in Europe despite the region’s strict regulations. The FSD Preview visualizations are now accessible as well. Ultimately, it appears that the HW3 upgrade does provide a number of improvements to the Tesla ownership experience, and it is one that Tesla Model 3 owners with HW2.5 in Europe continue to wait for until today.
Hopefully, Tesla could straighten out its HW3 retrofit rollout strategy for the majority of Europe. Elon Musk, after all, has always maintained that Tesla’s success is in no small part due to the faith of early adopters who chose to take a chance on a company with little experience building cars. As Tesla grows into one of the world’s most formidable carmakers and the market’s dominating EV force, there is very little reason why perennial delays on after-sales programs such as the HW3 retrofit are still happening.
Don’t hesitate to contact us for news tips. Just send a message to tips@teslarati.com to give us a heads up.
Tesla has announced it has hit a major milestone with Full Self-Driving subscriptions, shortly after it said it would exclusively offer the suite without the option to purchase it outright.
Tesla announced on Wednesday during its Q4 Earnings Call for 2025 that it had officially eclipsed the one million subscription mark for its Full Self-Driving suite. This represented a 38 percent increase year-over-year.
This is up from the roughly 800,000 active subscriptions it reported last year. The company has seen significant increases in FSD adoption over the past few years, as in 2021, it reported just 400,000. In 2022, it was up to 500,000 and, one year later, it had eclipsed 600,000.
NEWS: For the first time, Tesla has revealed how many people are subscribed or have purchased FSD (Supervised).
Active FSD Subscriptions:
• 2025: 1.1 million
• 2024: 800K
• 2023: 600K
• 2022: 500K
• 2021: 400K pic.twitter.com/KVtnyANWcs— Sawyer Merritt (@SawyerMerritt) January 28, 2026
In mid-January, CEO Elon Musk announced that the company would transition away from giving the option to purchase the Full Self-Driving suite outright, opting for the subscription program exclusively.
Musk said on X:
“Tesla will stop selling FSD after Feb 14. FSD will only be available as a monthly subscription thereafter.”
The move intends to streamline the Full Self-Driving purchase option, and gives Tesla more control over its revenue, and closes off the ability to buy it outright for a bargain when Musk has said its value could be close to $100,000 when it reaches full autonomy.
It also caters to Musk’s newest compensation package. One tranche requires Tesla to achieve 10 million active FSD subscriptions, and now that it has reached one million, it is already seeing some growth.
The strategy that Tesla will use to achieve this lofty goal is still under wraps. The most ideal solution would be to offer a less expensive version of the suite, which is not likely considering the company is increasing its capabilities, and it is becoming more robust.
Tesla is shifting FSD to a subscription-only model, confirms Elon Musk
Currently, Tesla’s FSD subscription price is $99 per month, but Musk said this price will increase, which seems counterintuitive to its goal of increasing the take rate. With that being said, it will be interesting to see what Tesla does to navigate growth while offering a robust FSD suite.
News
Tesla confirms Robotaxi expansion plans with new cities and aggressive timeline
Tesla plans to launch in Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas. It lists the Bay Area as “Safety Driver,” and Austin as “Ramping Unsupervised.”
Tesla confirmed its intentions to expand the Robotaxi program in the United States with an aggressive timeline that aims to send the ride-hailing service to several large cities very soon.
The Robotaxi program is currently active in Austin, Texas, and the California Bay Area, but Tesla has received some approvals for testing in other areas of the U.S., although it has not launched in those areas quite yet.
However, the time is coming.
During Tesla’s Q4 Earnings Call last night, the company confirmed that it plans to expand the Robotaxi program aggressively, hoping to launch in seven new cities in the first half of the year.
Tesla plans to launch in Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas. It lists the Bay Area as “Safety Driver,” and Austin as “Ramping Unsupervised.”
These details were released in the Earnings Shareholder Deck, which is published shortly before the Earnings Call:
🚨 BREAKING: Tesla plans to launch its Robotaxi service in Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas in the first half of this year pic.twitter.com/aTnruz818v
— TESLARATI (@Teslarati) January 28, 2026
Late last year, Tesla revealed it had planned to launch Robotaxi in Las Vegas, Phoenix, Dallas, and Houston, but Tampa and Orlando were just added to the plans, signaling an even more aggressive expansion than originally planned.
Tesla feels extremely confident in its Robotaxi program, and that has been reiterated many times.
Although skeptics still remain hesitant to believe the prowess Tesla has seemingly proven in its development of an autonomous driving suite, the company has been operating a successful program in Austin and the Bay Area for months.
In fact, it announced it achieved nearly 700,000 paid Robotaxi miles since launching Robotaxi last June.
🚨 Tesla has achieved nearly 700,000 paid Robotaxi miles since launching in June of last year pic.twitter.com/E8ldSW36La
— TESLARATI (@Teslarati) January 28, 2026
With the expansion, Tesla will be able to penetrate more of the ride-sharing market, disrupting the human-operated platforms like Uber and Lyft, which are usually more expensive and are dependent on availability.
Tesla launched driverless rides in Austin last week, but they’ve been few and far between, as the company is certainly easing into the program with a very cautiously optimistic attitude, aiming to prioritize safety.
Investor's Corner
Tesla (TSLA) Q4 and FY 2025 earnings call: The most important points
Executives, including CEO Elon Musk, discussed how the company is positioning itself for growth across vehicles, energy, AI, and robotics despite near-term pressures from tariffs, pricing, and macro conditions.
Tesla’s (NASDAQ:TSLA) Q4 and FY 2025 earnings call highlighted improving margins, record energy performance, expanding autonomy efforts, and a sharp acceleration in AI and robotics investments.
Executives, including CEO Elon Musk, discussed how the company is positioning itself for growth across vehicles, energy, AI, and robotics despite near-term pressures from tariffs, pricing, and macro conditions.
Key takeaways
Tesla reported sequential improvement in automotive gross margins excluding regulatory credits, rising from 15.4% to 17.9%, supported by favorable regional mix effects despite a 16% decline in deliveries. Total gross margin exceeded 20.1%, the highest level in more than two years, even with lower fixed-cost absorption and tariff impacts.
The energy business delivered standout results, with revenue reaching nearly $12.8 billion, up 26.6% year over year. Energy gross profit hit a new quarterly record, driven by strong global demand and high deployments of MegaPack and Powerwall across all regions, as noted in a report from The Motley Fool.
Tesla also stated that paid Full Self-Driving customers have climbed to nearly 1.1 million worldwide, with about 70% having purchased FSD outright. The company has now fully transitioned FSD to a subscription-based sales model, which should create a short-term margin headwind for automotive results.
Free cash flow totaled $1.4 billion for the quarter. Operating expenses rose by $500 million sequentially as well.
Production shifts, robotics, and AI investment
Musk further confirmed that Model S and Model X production is expected to wind down next quarter, and plans are underway to convert Fremont’s S/X line into an Optimus robot factory with a capacity of one million units.
Tesla’s Robotaxi fleet has surpassed 500 vehicles, operating across the Bay Area and Austin, with Musk noting a rapid monthly expansion pace. He also reiterated that CyberCab production is expected to begin in April, following a slow initial S-curve ramp before scaling beyond other vehicle programs.
Looking ahead, Tesla expects its capital expenditures to exceed $20 billion next year, thanks to the company’s operations across its six factories, the expansion of its fleet expansion, and the ramp of its AI compute. Additional investments in AI chips, compute infrastructure, and future in-house semiconductor manufacturing were discussed but are not included in the company’s current CapEx guidance.
More importantly, Tesla ended the year with a larger backlog than in recent years. This is supported by record deliveries in smaller international markets and stronger demand across APAC and EMEA. Energy backlog remains strong globally as well, though Tesla cautioned that margin pressure could emerge from competition, policy uncertainty, and tariffs.
Tesla hits major milestone with Full Self-Driving subscriptions
Tesla confirms Robotaxi expansion plans with new cities and aggressive timeline
