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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 announces crazy new Full Self-Driving milestone

The number of miles traveled has contextual significance for two reasons: one being the milestone itself, and another being Tesla’s continuing progress toward 10 billion miles of training data to achieve what CEO Elon Musk says will be the threshold needed to achieve unsupervised self-driving.

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Credit: Tesla

Tesla has announced a crazy new Full Self-Driving milestone, as it has officially confirmed drivers have surpassed over 8 billion miles traveled using the Full Self-Driving (Supervised) suite for semi-autonomous travel.

The FSD (Supervised) suite is one of the most robust on the market, and is among the safest from a data perspective available to the public.

On Wednesday, Tesla confirmed in a post on X that it has officially surpassed the 8 billion-mile mark, just a few months after reaching 7 billion cumulative miles, which was announced on December 27, 2025.

The number of miles traveled has contextual significance for two reasons: one being the milestone itself, and another being Tesla’s continuing progress toward 10 billion miles of training data to achieve what CEO Elon Musk says will be the threshold needed to achieve unsupervised self-driving.

The milestone itself is significant, especially considering Tesla has continued to gain valuable data from every mile traveled. However, the pace at which it is gathering these miles is getting faster.

Secondly, in January, Musk said the company would need “roughly 10 billion miles of training data” to achieve safe and unsupervised self-driving. “Reality has a super long tail of complexity,” Musk said.

Training data primarily means the fleet’s accumulated real-world miles that Tesla uses to train and improve its end-to-end AI models. This data captures the “long tail” — extremely rare, complex, or unpredictable situations that simulations alone cannot fully replicate at scale.

This is not the same as the total miles driven on Full Self-Driving, which is the 8 billion miles milestone that is being celebrated here.

The FSD-supervised miles contribute heavily to the training data, but the 10 billion figure is an estimate of the cumulative real-world exposure needed overall to push the system to human-level reliability.

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Tesla Cybercab production begins: The end of car ownership as we know it?

While this could unlock unprecedented mobility abundance — cheaper rides, reduced congestion, freed-up urban space, and massive environmental gains — it risks massive job displacement in ride-hailing, taxi services, and related sectors, forcing society to confront whether the benefits of AI-driven autonomy will outweigh the human costs.

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Credit: Tesla | X

The first Tesla Cybercab rolled off of production lines at Gigafactory Texas yesterday, and it is more than just a simple manufacturing milestone for the company — it’s the opening salvo in a profound economic transformation.

Priced at under $30,000 with volume production slated for April, the steering-wheel-free, pedal-less Robotaxi-geared vehicle promises to make personal car ownership optional for many, slashing transportation costs to as little as $0.20 per mile through shared fleets and high utilization.

While this could unlock unprecedented mobility abundance — cheaper rides, reduced congestion, freed-up urban space, and massive environmental gains — it risks massive job displacement in ride-hailing, taxi services, and related sectors, forcing society to confront whether the benefits of AI-driven autonomy will outweigh the human costs.

Let’s examine the positives and negatives of what the Cybercab could mean for passenger transportation and vehicle ownership as we know it.

The Promise – A Radical Shift in Transportation Economics

Tesla has geared every portion of the Cybercab to be cheaper and more efficient. Even its design — a compact, two-seater, optimized for fleets and ride-sharing, the development of inductive charging, around 300 miles of range on a small battery, half the parts of the Model 3, and revolutionary “unboxed” manufacturing — is all geared toward rapid production.

Operating at a fraction of what today’s rideshare prices are, the Cybercab enables on-demand autonomy for a variety of people in a variety of situations.

Tesla ups Robotaxi fare price to another comical figure with service area expansion

It could also be the way people escape expensive and risky car ownership. Buying a vehicle requires expensive monthly commitments, including insurance and a payment if financed. It also immediately depreciates.

However, Cybercab could unlock potential profitability for owning a car by adding it to the Robotaxi network, enabling passive income. Cities could have parking lots repurposed into parks or housing, and emissions would drop as shared electric vehicles would outnumber gas cars (in time).

The first step of Tesla’s massive production efforts for the Cybercab could lead to millions of units annually, turning transportation into a utility like electricity — always available, cheap, and safe.

The Dark Side – Job Losses and Industry Upheaval

With Robotaxi and Cybercab, they present the same negatives as broadening AI — there’s a direct threat to the economy.

Uber, Lyft, and traditional taxis will rely on human drivers. Robotaxi will eliminate that labor cost, potentially displacing millions of jobs globally. In the U.S. alone, ride-hailing accounts for billions of miles of travel each year.

There are also potential ripple effects, as suppliers, mechanics, insurance adjusters, and even public transit could see reduced demand as shared autonomy grows. Past automation waves show job creation lags behind destruction, especially for lower-skilled workers.

Gig workers, like those who are seeking flexible income, face the brunt of this. Displaced drivers may struggle to retrain amid broader AI job shifts, as 2025 estimates bring between 50,000 and 300,000 layoffs tied to artificial intelligence.

It could also bring major changes to the overall competitive landscape. While Waymo and Uber have partnered, Tesla’s scale and lower costs could trigger a price war, squeezing incumbents and accelerating consolidation.

Balancing Act – Who Wins and Who Loses

There are two sides to this story, as there are with every other one.

The winners are consumers, Tesla investors, cities, and the environment. Consumers will see lower costs and safer mobility, while potentially alleviating themselves of awkward small talk in ride-sharing applications, a bigger complaint than one might think.

Elon Musk confirms Tesla Cybercab pricing and consumer release date

Tesla investors will be obvious winners, as the launch of self-driving rideshare programs on the company’s behalf will likely swell the company’s valuation and increase its share price.

Cities will have less traffic and parking needs, giving more room for housing or retail needs. Meanwhile, the environment will benefit from fewer tailpipes and more efficient fleets.

A Call for Thoughtful Transition

The Cybercab’s production debut forces us to weigh innovation against equity.

If Tesla delivers on its timeline and autonomy proves reliable, it could herald an era of abundant, affordable mobility that redefines urban life. But without proactive policies — retraining, safety nets, phased deployment — this revolution risks widening inequality and leaving millions behind.

The real question isn’t whether the Cybercab will disrupt — it’s already starting — it’s whether society is prepared for the economic earthquake it unleashes.

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Tesla Model 3 wins Edmunds’ Best EV of 2026 award

The publication rated the Model 3 at an 8.1 out of 10, and with its most recent upgrades and changes, Edmunds says, “This is the best Model 3 yet.”

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Credit: Tesla

The Tesla Model 3 has won Edmunds‘ Top Rated Electric Car of 2026 award, beating out several other highly-rated and exceptional EV offerings from various manufacturers.

This is the second consecutive year the Model 3 beat out other cars like the Model Y, Audi A6 Sportback E-tron, and the BMW i5.

The car, which is Tesla’s second-best-selling vehicle behind the popular Model Y crossover, has been in the company’s lineup for nearly a decade. It offers essentially everything consumers could want from an EV, including range, a quality interior, performance, and Tesla’s Full Self-Driving suite, which is one of the best in the world.

The publication rated the Model 3 at an 8.1 out of 10, and with its most recent upgrades and changes, Edmunds says, “This is the best Model 3 yet.”

In its Top Rated EVs piece on its website, it said about the Model 3:

“The Tesla Model 3 might be the best value electric car you can buy, combining an Edmunds Rating of 8.1 out of 10, a starting price of $43,880, and an Edmunds-tested range of 338 miles. This is the best Model 3 yet. It is impressively well-rounded thanks to improved build quality, ride comfort, and a compelling combination of efficiency, performance, and value.”

Additionally, Jonathan Elfalan, Edmunds’ Director of Vehicle Testing, said:

“The Model 3 offers just about the perfect combination of everything — speed, range, comfort, space, tech, accessibility, and convenience. It’s a no-brainer if you want a sensible EV.”

The Model 3 is the perfect balance of performance and practicality. With the numerous advantages that an EV offers, the Model 3 also comes in at an affordable $36,990 for its Rear-Wheel Drive trim level.

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