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Tesla owners who ordered Full Self-Driving will get free HW3 upgrade, says Elon Musk

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In a recent series of tweets, Elon Musk shared a number of updates on the upcoming rollout of Tesla’s homegrown HW3 chip, which would help the company’s fleet of vehicles achieve Full Self-Driving. According to Musk, the new chip would likely be installed in all new production cars in about 6 months. 

Musk noted that Software V9 saw a ~400% increase in useful ops/sec due to the enabling of the system’s integrated GPU and optimizations in the use of the discrete GPU. These numbers, while impressive, are set to be dwarfed by the improvements that Hardware 3 would bring. According to the CEO, the improvements that would be offered by Tesla’s custom chip to the company’s Neural Network would be “somewhere between 500% and 2000%” compared to the company’s existing hardware. 

Keeping Tesla’s tendency to continuously innovate, Musk later stated that HW3 would be equipped in all new production cars in around 6 months. Transitioning to the new hardware will not change any of the vehicle’s sensors or production, either, as it is simply a replacement of the Autopilot computer being installed on all vehicles today. As an added note, Musk pointed out that Tesla owners who purchased Full Self-Driving would be given the HW3 upgrade free of charge. Owners who have not ordered Full Self-Driving, on the other hand, would likely pay around $5,000 for the FSD suite and the new hardware. 

Elon Musk noted back in 2016 that all Teslas produced from the Fremont factory are equipped with the necessary hardware – cameras, ultrasonic sensors, and an onboard supercomputer – that would enable Full Self-Driving sometime in the future. Tesla has since rolled out improvements to its hardware since then, though, and in the past Q2 2018 earnings call, Musk and the company’s executives discussed its custom chip further.

During the call, it was revealed that Tesla’s custom chip, which will be specifically designed for self-driving, is being designed by a team led by Pete Bannon, who used to work at Apple, where he helped create the company’s first ARM 32-bit processor that went into the iPhone 5, as well as the first ARM 64-bit processor in the world which went into the iPhone 5S.

“It’s an incredible job by Pete and his team to create this, the world’s most advanced computer designed specifically for autonomous operation. And as a rough sort, whereas the current NVIDIA’s hardware can do 200 frames a second, this is able to do over 2,000 frames a second and with full redundancy and fail-over. It costs the same as our current hardware and we anticipate that this would have to be replaced, this replacement, which is why we made it easy to switch out the computer, and that’s all that needs to be done. All the connectors are compatible, and you get an order of magnitude, more processing and you can run all the cameras at primary full resolution with the complex neural net.”

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Tesla appears to be setting the stage for the rollout of its Full Self-Driving suite. At the end of Q3, for one, a leaked email from Elon Musk to Tesla workers revealed that the company is starting an incentivized Full Self-Driving beta test program for employees. In the email, Musk noted that employees who wish to be part of the program would be receiving Autopilot, Full Self-Driving, and the Premium Upgrades Package (PUP) on their vehicles for free, provided that they share 300 to 400 hours of real-world driving feedback. In his message, Elon Musk was optimistic that the ~100 slots for the incentivized beta tester program would be filled quickly.

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 confirmed HW3 can’t do Unsupervised FSD but there’s more to the story

Tesla confirmed HW3 vehicles cannot run unsupervised FSD, replacing its free upgrade promise with a discounted trade-in.

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Tesla has officially confirmed that early vehicles with its Autopilot Hardware 3 (HW3) will not be capable of unsupervised Full Self-Driving, while extending a path forward for legacy owners through a discounted trade-in program. The announcement came by way of Elon Musk in today’s Tesla Q1 2026 earnings call.

The history here matters. HW3 launched in April 2019, and Tesla sold Full Self-Driving packages to owners on the understanding that the hardware was sufficient for full autonomy. Some owners paid between $8,000 and $15,000 for FSD during that period. For years, as FSD’s AI models grew more demanding, HW3 vehicles fell progressively further behind, eventually landing on FSD v12.6 in January 2025 while AI4 vehicles moved to v13 and then v14. When Musk acknowledged in January 2025 that HW3 simply could not reach unsupervised operation, and alluded to a difficult hardware retrofit.

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The near-term offering is more concrete. Tesla’s head of Autopilot Ashok Elluswamy confirmed on today’s call that a V14-lite will be coming to HW3 vehicles in late June, bringing all the V14 features currently running on AI4 hardware. That is a meaningful software update for owners who have been frozen at v12.6 for over a year, and it represents genuine effort to keep older hardware relevant. Unsupervised FSD for vehicles is now targeted for Q4 2026 at the earliest, with Musk describing it as a gradual, geography-limited rollout.

For HW3 owners, the over-the-air V14-lite update is welcomed, and the discounted trade-in path at least acknowledges an old obligation. What happens next with the trade-in pricing will define how this chapter ultimately gets written. If Tesla prices the hardware path fairly, acknowledges what early adopters are owed, and delivers V14-lite on the June timeline it committed to today, it has a real opportunity to convert one of the longest-running sore subjects among early adopters into a loyalty story.

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Tesla 2026 Spring Update drops 12 new features owners have been waiting for

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Tesla announced its Spring 2026 software update, and it’s the most feature-dense seasonal release the company has put out. The update covers twelve named changes spanning FSD, voice AI, safety lighting, dashcam storage, and pet display customization, among other things.

The centerpiece for owners with AI4 hardware is a redesigned Self-Driving app. The new interface lets owners subscribe to Full Self-Driving with a single tap and view ongoing FSD usage stats directly in the vehicle.

Grok gets its biggest in-car upgrade yet. The update adds a “Hey Grok” hands-free wake word along with location-based reminders, so a driver can now say “remind me to pick up groceries when I get home” without touching the screen. Grok first arrived in vehicles in July 2025, but each update has pushed it closer to genuine daily utility. Musk framed the broader vision clearly at Davos in January, saying Tesla is “really moving into a future that is based on autonomy.”

On safety, the update introduces enhanced blind spot warning lights that integrate directly with the cabin’s ambient lighting, building on the blind spot door warning that arrived in update 2026.8.

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Dog Mode has been renamed Pet Mode and now lets owners choose a dog, cat, or hedgehog icon and add their pet’s name to the display.

Dashcam retention now extends up to 24 hours, up from the previous one-hour rolling loop, with a permanent save option for any clip. Weather maps now show rain and snow with better color differentiation and include the past hour of precipitation data along the route.

Tesla has now established a clear rhythm of two major OTA pushes per year. As with last year’s Spring update, that cycle started taking shape in 2025 with adaptive headlights and trunk customization. The 2025 Holiday Update then added Grok to the vehicle for the first time. This Spring follows that structure: the Holiday update introduces new architecture, and the Spring update broadens it across the fleet.

Two notable features still did not make it. IFTTT automations, which launched in China earlier this year, were held back from this North American release for unknown reasons, and Apple CarPlay remains absent, reportedly still delayed by iOS 26 and Apple Maps compatibility issues.

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Below is the full list of feature updates released by Tesla.

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Tesla mobile app shows signs of upcoming FSD subscriptions

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An autonomous Tesla Model 3 in action. (Credit: Tesla)

It appears that Tesla may be preparing to roll out some subscription-based services soon. Based on the observations of a Wales-based Model 3 owner who performed some reverse-engineering on the Tesla mobile app, it seems that the electric car maker has added a new “Subscribe” option beside the “Buy” option within the “Upgrades” tab, at least behind the scenes.

A screenshot of the new option was posted in the r/TeslaMotors subreddit, and while the Tesla owner in question, u/Callump01, admitted that the screenshot looks like something that could be easily fabricated, he did submit proof of his reverse-engineering to the community’s moderators. The moderators of the r/TeslaMotors subreddit confirmed the legitimacy of the Model 3 owner’s work, further suggesting that subscription options may indeed be coming to Tesla owners soon.

Did some reverse engineering on the app and Tesla looks to be preparing for subscriptions? from r/teslamotors

Tesla’s Full Self-Driving suite has been heavily speculated to be offered as a subscription option, similar to the company’s Premium Connectivity feature. And back in April, noted Tesla hacker @greentheonly stated that the company’s vehicles already had the source codes for a pay-as-you-go subscription model. The Tesla hacker suggested then that Tesla would likely release such a feature by the end of the year — something that Elon Musk also suggested in the first-quarter earnings call. “I think we will offer Full Self-Driving as a subscription service, but it will be probably towards the end of this year,” Musk stated.

While the signs for an upcoming FSD subscription option seem to be getting more and more prominent as the year approaches its final quarter, the details for such a feature are still quite slim. Pricing for FSD subscriptions, for example, have not been teased by Elon Musk yet, though he has stated on Twitter that purchasing the suite upfront would be more worth it in the long term. References to the feature in the vehicles’ source code, and now in the Tesla mobile app, also listed no references to pricing.

The idea of FSD subscriptions could prove quite popular among electric car owners, especially since it would allow budget-conscious customers to make the most out of the company’s driver-assist and self-driving systems without committing to the features’ full price. The current price of the Full Self-Driving suite is no joke, after all, being listed at $8,000 on top of a vehicle’s cost. By offering subscriptions to features like Navigate on Autopilot with automatic lane changes, owners could gain access to advanced functions only as they are needed.

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Elon Musk, for his part, has explained that ultimately, he still believes that purchasing the Full Self-Driving suite outright provides the most value to customers, as it is an investment that would pay off in the future. “I should say, it will still make sense to buy FSD as an option as in our view, buying FSD is an investment in the future. And we are confident that it is an investment that will pay off to the consumer – to the benefit of the consumer.” Musk said.

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