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Tesla Model 3 gets Full Self-Driving HW3 upgrade: Full details with lessons learned

(Credit: Tesla Joy/Twitter)

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True to Elon Musk’s expectations on Twitter last month, it appears that Tesla is now looking to ramp Hardware 3 retrofits for owners who purchased the Full Self-Driving suite and whose cars are equipped with HW2 or HW2.5. A recent account involving a Tesla owner-enthusiast’s experience with her Model 3’s HW3 upgrade shows that there are still some areas in the retrofit process that can be improved. 

Tesla Model 3 owner-enthusiast TeslaJoy was looking to do a video on the company’s recent voice command update when she noticed that the feature on her vehicle was not working properly. This prompted her to make an appointment with Tesla to get her car checked in and fixed. During the troubleshooting process, she inquired if a possible HW3 retrofit could be done to her vehicle as well. Fortunately, a HW3 unit was available for her Model 3, and so, a rather eventful upgrade process began. 

Tesla Service Centers currently receive batches of HW3 units from the electric car maker, and each unit is assigned to a specific VIN. This is the reason why for now, at least, owners are not advised to call Tesla to schedule a HW3 retrofit. Fortunately for Joy, the Tesla Service Center opted to perform the HW3 upgrade at the same time as her appointment, since she would need to bring her Model 3 back for a retrofit anyway.

(Credit: TeslaJoy/Twitter)

Since the retrofit was estimated to take around 5 hours, Tesla asked the Model 3 owner to leave her car for the day and claim it the next business day. That was December 31, which meant that the vehicle should be ready the day after New Year’s. As it would turn out, the Service Center would end up encountering difficulties installing the necessary firmware on Joy’s Model 3. This resulted in delays, which culminated in the vehicle’s HW3 retrofit being completed on January 5, 2020, over five days after the Model 3 owner turned in her car. 

Hardware 3 retrofits are available for owners who have purchased Tesla’s Full Self-Driving suite, and whose cars are still equipped with the company’s HW2 and HW2.5 units. With Hardware 3 installed, owners will be able to utilize the full suite of FSD capabilities that the company is rolling out today. One of these is the FSD preview that Tesla rolled out for the holidays, as well as features like traffic cone recognition. 

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True to Elon Musk’s words on Twitter, the HW3 retrofit is free for owners who have purchased the company’s FSD suite. Joy, for her part, was able to get FSD last March at a discounted price of $2,000 on top of her Enhanced Autopilot. FSD currently costs $7,000 when it is included in a new vehicle’s order. 

Based on Joy’s experience, it appears that owners should expect to wait some time for their vehicles are set to be retrofitted. In the Model 3 owner’s case, her car’s upgrade ended up taking days since the first HW3 kit that was installed did not function properly. This resulted in the vehicle essentially getting retrofitted twice, causing delays. Tesla did give Joy a $500 Uber voucher due to the absence of loaner vehicles, but the whole experience showed notable points for improvement nonetheless. 

In a way, TeslaJoy‘s experience with her Model 3’s HW3 retrofit stands in stark contrast with the experiences of Model S owner Sofiaan Fraval, whose car was upgraded by a Service Center during a voluntary HEPA replacement. In Fraval’s case, his Model S was fully retrofitted within a matter of hours, and it was calibrated in pretty much the same day. A Tesla Model S owner who runs the Electric Dreams YouTube channel also received his vehicle’s HW3 retrofit without any issues, and it was performed by a mobile technician, not a Service Center. 

In the Electric Dreams host’s case, the entire HW3 retrofit was conducted from the convenience of his home, with a mobile service tech coming over in the morning, taking an hour and a half for the installation to be completed, and an additional two hours for the necessary firmware to be loaded onto the vehicle. This is in line with Elon Musk’s previous statement on Twitter, where he stated that HW3 retrofits should be possible through Tesla’s mobile service fleet

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Overall, there seems to be a variance with regards to the experience of owners when getting their vehicles retrofitted with Tesla’s FSD computer. Some owners seem to be experiencing a seamless, painless process, while some, like Joy, end up having to test their patience. Hopefully, as Tesla ramps its HW3 retrofits this quarter, the company could work in optimizing its upgrade process, so there are more experiences like the Electric Dreams host’s, and less like TeslaJoy‘s. 

Watch TeslaJoy‘s HW3 experience in the video below. 

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 Cybercab has one important piece that AI4 cars might need for FSD

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Credit: @tpgoebel | X

A close-up image of a Cybercab engineering vehicle in Peabody, Massachusetts, reveals a compact triangular side repeater camera housing equipped with an integrated washer mechanism.

This seemingly small hardware addition could prove to be one of the most critical components for achieving reliable, unsupervised Full Self-Driving (FSD) — not just for the dedicated Robotaxi but potentially for existing AI4-equipped vehicles as well.

The washer system’s importance cannot be overstated in Tesla’s vision-only autonomy approach. Cameras are the sole sensory input for the neural networks powering FSD, constantly interpreting the environment for safe navigation. In real-world conditions, however, lenses quickly accumulate rain, snow, mud, dust, or road spray.

Many of us Tesla owners, especially those who deal with any sort of winter weather at all, know the all-too-common alert that pops up when cameras are obstructed:

Even brief obstructions can drop perception confidence, trigger safety disengagements, or force the vehicle to pull over, although these are relatively rare. Instead, most of the time, the camera will need a wipe from the owner next time they stop the car.

But unlike human drivers who can manually clear their view, a Robotaxi operating 24/7 without a steering wheel or mirrors must maintain pristine vision autonomously. The Cybercab’s side repeater washer delivers targeted cleaning bursts precisely where needed for merging, lane changes, and blind-spot monitoring — functions that demand uninterrupted visibility from the external cameras:

This hardware directly tackles a known pain point in current FSD deployments. Owners frequently report camera-related alerts during inclement weather, which is understandable, but needs to be solved for a true autonomous experience.

For a production Robotaxi fleet aiming for high utilization and minimal downtime, robust washer systems represent a foundational reliability upgrade; essentially, they’re a must-have. Early sightings suggest the design may extend to rear cameras as well, creating a comprehensive cleaning architecture that keeps the entire vision suite operational in harsh environments.

Without it, even the most advanced neural nets struggle when their “eyes” are compromised.

What Does This Mean for AI4 Cars?

This Cybercab detail raises timely questions for AI4 cars already on the road. While Hardware 4 delivers superior compute and camera resolution compared to earlier versions, production models typically lack dedicated side and rear washers. Tesla has included them on Model Y robotaxis that it is using in the fleet:

Tesla Robotaxi has a highly-requested hardware feature not available on typical Model Ys

As Tesla refines unsupervised FSD for broader release, the gap in environmental resilience becomes evident. Software improvements can help mitigate issues, but they cannot fully replace physical cleaning in heavy rain or muddy conditions. Analysts and owners increasingly speculate that AI4 vehicles may eventually require similar washer retrofits — or a future AI4.5 variant — to match the Cybercab’s all-weather readiness and support the same level of autonomy.

As testing progresses, the Cybercab’s washer mechanism highlights Tesla’s pragmatic focus on real-world robustness. It may well become the hardware piece that determines how quickly and reliably FSD scales from prototypes to everyday vehicles.

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Elon Musk just upped his Tesla stake further fueling SpaceX merger conversation

Elon Musk just collected a $116 billion Tesla payday and the timing is eye-opening

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Elon Musk quietly collected one of the largest single-transaction paydays in corporate history on Monday. A Form 4 filed with the SEC on June 17, 2026 disclosed that Musk exercised 303,960,630 Tesla stock options from his 2018 compensation package, with the transaction dated June 16. No shares were sold on the open market.

The numbers are straightforward but striking. Musk exercised the options at a split-adjusted strike price of $23.34, with Tesla closing at $404.66 that day, putting the spread at $381.32 per share and generating roughly $115.9 billion in paper gains in a single transaction. To cover the exercise cost, Tesla withheld 17,531,857 shares through a net share settlement, meaning Musk paid nothing out of pocket.

For perspective, in 2018, Elon Musk’s award was originally approved by Tesla shareholders on March 21, 2018, and structured entirely around performance milestones that many analysts at the time called unreachable. Every tranche eventually vested. The original grant covered 20,264,042 shares at $350.02, which after Tesla’s 5-for-1 split in 2020 and 3-for-1 split in 2022 adjusted to 303,960,630 shares at $23.34. A Delaware court rescinded the award in January 2024, ruling the board was conflicted. As Teslarati reported, Tesla shareholders voted to ratify the package anyway in June 2024 by a wide margin. The Delaware Supreme Court reversed the decision in December 2025, finding full cancellation too extreme, and Tesla’s board signed an Implementation Agreement on April 21, 2026 to formally deliver the shares.

The Tesla and SpaceX merger everyone is talking about is quietly building

The timing and structure of the Form 4 filing carries more weight than a routine stock option exercise typically would. Musk exercised his 2018 Tesla award on June 16, a week into SpaceX completing its IPO and trading publicly, and giving SpaceX a public market valuation and share currency for the first time in the company’s history. A stock-for-stock merger between two companies requires the acquiring entity to have tradeable shares it can offer to the target’s shareholders, and SpaceX now has exactly that. At the same time, Musk just increased his direct Tesla voting power to approximately 20%, giving him greater influence over any shareholder vote that a merger would require. The restricted shares he received cannot be sold until 2033, which removes any near-term incentive to cash out and instead positions this stake as long-term structural collateral in a deal. Additionally, Musk’s two companies are already deeply intertwined through shared semiconductor fabrication at their joint TERAFAB facility in Austin, cross-company supply chain transactions, and Tesla’s $2 billion investment in xAI prior to the SpaceX-xAI merger.

Wedbush analyst Dan Ives has publicly placed the odds of a Tesla and SpaceX combination at 80% to 90% by early 2027. The Implementation Agreement that made Monday’s exercise possible was signed on April 21, 2026, roughly two months before the SpaceX IPO closed. That sequencing, building Musk’s Tesla ownership to its highest point ever immediately before SpaceX gains the public currency needed to acquire it, is either an extraordinary coincidence or a carefully staged foundation for the largest corporate merger in history.

Elon Musk’s TERAFAB project: Everything you need to know

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Tesla Full Self-Driving is getting a major parking upgrade, Elon Musk says

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Credit: Tesla

Tesla Full Self-Driving is going to be getting a major parking upgrade. That’s according to CEO Elon Musk, who detailed a crafty new feature that will improve parking preferences, removing a layer of human input.

Musk said that upcoming releases of Full Self-Driving will “remember your parking preferences.” It will go to the location you prefer, based on where you’ve parked in the past, instead of taking the first spot available, which is where the suite is currently.

The CEO went on to explain that destination parking is “by far” the biggest reason for intervention during FSD operation. We’d have to believe this is true; many takeovers in my Model Y, which runs the latest version of FSD as it is in the Early Access Program, are due to parking because it chooses a spot I do not want to be in.

Many times, as soon as I enter a parking lot, I take over and park manually. I prefer to park away from the entrance of wherever I am, away from cars. Too many lessons learned over the years from people with free-swinging doors.

We’d imagine these new updates will also solve things like parking orientation. Let’s say when you arrive at work, you always park in the third spot in the third row, and you prefer to back in. It seems as if Musk is implying that your car will now do this, learning from takeovers and aiming to eliminate the need to manually park whenever possible.

This is a major upgrade because parking is a major shortcoming of FSD currently. We’ve requested things like manual input of parking preferences, choosing to park far away, first available, or away from cars, for example.

However, some have used the option of dropping a pin at the location you’d like to park at your destination. This has worked some of the time, but FSD will still choose to park in whatever it sees first.

Musk did not give a timetable for when the improvements would be released, but it is likely to come soon. Tesla has been releasing a new FSD version every few weeks, so we may not have to wait long to test it.

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