New images and details surrounding Tesla’s most robust self-driving computer, or Hardware 4 (HW4), were shown today, revealing additional cameras, a reintroduction of potential radar systems, and more.
Tesla released some details about HW4 during last year’s AI Day event. Still, additional specifications were revealed today by Greentheonly, a Tesla hacker who said the computer came from a Model X vehicle. Green said that Tesla has already started building vehicles with the new computer, but they are not yet being delivered.
I am sure you are all eager to know more about HW4, so I am going to show you the refreshed car computer from a Model X. Just don’t tell anybody you saw it, because it’s really a secret still.
This unit made appearance at the EPC about a month ago, but the picture was hidden. pic.twitter.com/7AENqP6h2Z— green (@greentheonly) February 15, 2023
Right off the bat, green confirms what CEO Elon Musk said during the most recent earnings call: retrofits of HW4 into older vehicles will not be possible. While green shows the form factor of the new computer is completely different than past ones, even the most recent applications that were installed in Plaid vehicles, the new HW4 is simply not compatible.
Musk said during the Q4 Earnings Call in late January:
“But it is the cost and difficulty of retrofitting Hardware 3 with Hardware 4 is quite significant. So it would not be, I think, economically feasible to do so.”
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Many of the specifics of HW4 are extremely technical, but it appears Tesla aimed to simplify the infotainment system to void a GPU daughterboard. The entire unit is smaller and sleeker, but the RAM, NVMe (nonvolatile memory express), CPU, and GPU are all identical to past units.
Green adds:
“A lot less improvement than many hoped for. Still Samsung Exynos-IP based. Bumped CPU cores from 12 to 20 (5 clusters of 4 cores each), maxing at 2.35GHz, idle at 1.37GHz Number of TRIP cores increased from 2 to 3, 2.2GHz max freq All x2 since there are two SoCs per board.”
HW4:
A lot less improvement than many hoped for.
Still Samsung Exynos-IP based.
Bumped CPU cores from 12 to 20 (5 clusters of 4 cores each), maxing at 2.35GHz, idle at 1.37GHz
Number of TRIP cores increased from 2 to 3, 2.2GHz max freq
All x2 since there are two SoCs per board pic.twitter.com/eeHXg5x0aL— green (@greentheonly) February 15, 2023
Perhaps one of the most notable differences are there are now 12 “fully-populated camera connectors,” with one being utilized as a spare. The cameras are also labeled, and some seem to indicate that cameras will be added to the front and rear bumpers. “There’s a huge blindspot up front on legacy cars up front,” green notes.
What’s SVC you might wonder? According to EPC, SVC is bumper. So I’d guess these are bumper cameras. There’s a huge blindspot upfront on legacy cars up front (welcome to the legacy camp, Plaid owners!), so front bumper camera and two in the (rear?) bumper corners for x-traffic pic.twitter.com/sixzNo7qII
— green (@greentheonly) February 15, 2023
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This would make sense, considering Teslas currently utilize eight cameras, with the additional three connectors making way for the two rear and one front camera that will be added with the new hardware.
Another interesting detail found by green was Phoenix radar, which is a rumored 4-dimensional radar that will help extend current reach by double. Tesla wanted to move away from radar, opting for a completely camera-based approach, which it did with the introduction of its Vision model.
Musk said during the Q1 2021 Earnings Call:
“When your vision works, it works better than the best human because it’s like having eight cameras, it’s like having eyes in the back of your head, beside your head, and has three eyes of different focal distances looking forward. This is — and processing it at a speed that is superhuman. There’s no question in my mind that with a pure vision solution, we can make a car that is dramatically safer than the average person.”
However, radar and a radar heater were both seen in vehicle coding. The Phoenix radar appears to be a type of forward radar that will be installed in HW4 vehicles.
Perhaps more details will be shed regarding HW4 in the coming weeks, especially as Tesla’s Investor Day is approaching and will take place on March 1.
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In a new note to investors on Tuesday, Morgan Stanley analyst Andrew Percoco said that Tesla has one big financial question to answer for investors regarding its Robotaxi rollout, Full Self-Driving software, and Optimus.
Percoco said in the note that, for the most part, investors are still very positive about the direction the company is headed. However, there are some things the firm would like to see, and they have to do with financials.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla bulls are more than convinced that the company’s Full Self-Driving software is proof it can develop physical AI. Financially, however, there are still some questions, especially on elevated spending, which CEO Elon Musk said would occur as the company works to roll out Robotaxi faster and continue developing its Optimus robot.
The latter two are where Tesla will have to prove progress to investors, as Percoco writes that both projects “will require clearer evidence that Robotaxi is scaling and more tangible Optimus proof points to support the ROI on elevated capex.”
Percoco said the second quarter earnings call did not change his long-term thesis of where Tesla is positioned in the AI race, which is out in front. However, there are concerns that weaker gross margins and higher R&D spend will stress financials, and that has “sharpened our (and investors’) focus on measurable progress across Robotaxi and Optimus.”
Additionally, Robotaxi still needs to be proven with more operation in existing cities while maintaining safety but improving how many rides it gives in any given time, he said. For Optimus, Percoco wrote that he is “still looking for evidence beyond commentary around SOP.”
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Morgan Stanley put Percoco in charge of covering Tesla after long-time analyst Adam Jonas transitioned to the automotive side.
Currently, Morgan Stanley has a $415 price target on Tesla and a ‘Hold’ rating on the stock. It is trading at around $330 at the time of publication, which was 2:30 P.M. on the East Coast.
SpaceX’s massive investment in AI will make it a big winner, Argus Research said after the company’s successful earnings call last week.
The firm also upgraded shares to a Buy from Hold and set a $160 price target.
SpaceX (NASDAQ: SPCX) is currently recovering from its heavy AI infrastructure investments, as it spent nearly $16 billion in Q2 alone. The company did this primarily by monetizing high-demand GPU compute capacity at a much faster pace than traditional data center economics would suggest.
Company CFO Bret Johnsen said that SpaceX would be able to pay back anything on new deployments within a year.
There are plenty of ways the company can do this:
Leasing excess compute capacity through contracts
SpaceX has already built Colossus and Colossus II, largely for its own model training. However, much of that capacity is already rented out to third parties. It already has major deals with Anthropic, Google, and Reflection AI. These partnerships are adding billions per month to SpaceX’s spreadsheet.
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High utilization driven by industry-wide scarcity
The demand for advanced AI training and inference capacity continues to exceed what is available for use. SpaceX can fill new racks quickly after they come online, so the capital deployed converts into revenue with minimal idle time.
Additionally, management and outside observers have described the new compute capital as behaving more like a cost-of-goods-sold than traditional multi-year capex, especially because of this rapid monetization pattern.
Capacity has already scaled from ~0.4 GW a year to 1.4 GW annually by the end of Q2. There are targets of more than 2 GW by year-end.
High incremental margins on the rental business once capacity is online
GPU cloud providers often operate at strong gross margins. SpaceX can monetize capacity that was already partially built or can be added efficiently. This means that incremental EBITDA margins on the rental revenue are usually high. This accelerates cash recovery relative to the gross capital outlay.
Parallel monetization of its own AI software and applications
Beyond pure infrastructure rental, SpaceX also generates revenue from Grok through subscriptions and usage, from X through ads, data, and other related services, enterprise APIs, and the planned integration of the Cursor coding tools acquisition.
These application layers ride on the same compute infrastructure and provide additional high-margin streams that could offset build-out costs. AI-segment revenue overall rose sharply to about $2.6 billion in Q2, according to Motley Fool. This was driven primarily by the infrastructure contracts, but the software side is also partially responsible.
Efficient, large-scale deployment and vertical integration advantages
SpaceX has emphasized the rapid construction of power and cooling infrastructure and favorable cost-per-megawatt economics relative to industry benchmarks in some disclosures.
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Combined with its ability to scale capacity aggressively and the fact that many contracts start generating revenue within months of capacity coming online, the effective payback compresses dramatically compared with more conventional multi-year data-center projects.
SpaceX’s dominant near-term recovery path will turn the AI clusters into a hyperscale-style compute rental business for other leading AI companies while still using a portion for internal models.
Tesla headlights have caused a recall of over 20,000 of the company’s two most popular vehicles, the Model 3 and Model Y, due to the low-beam bulb exceeding the maximum allowed intensity according to federal standards.
Tesla initiated the recall with the National Highway Traffic Safety Administration (NHTSA) this morning, stating that the low-beam output “exceeds the maximum allowed intensity in the outer upper-right and outer upper-left areas of the 10U and 90U zone, as prescribed in FMVSS No. 108.”
Tesla sourced the impacted headlights from Marelli Automotive Lighting, a Mexico-based company. The recall impacts 2020-2023 Model Y vehicles and 2017-2023 Model 3 vehicles. It is estimated that every VIN in this recall is impacted by the defect.
🚨 Tesla is recalling 20,349 2020-23 Model Y vehicles and 2017-23 Model 3 vehicles due to an excessively bright headlamp low beam.
Currently, there is no remedy plan in place, as it is still being developed. pic.twitter.com/y34cIO2U0B
— TESLARATI (@Teslarati) August 11, 2026
Typically, Tesla would remedy recalls of this nature through an Over-the-Air software update, which has been a major focus of criticism by the company and its supporters because the NHTSA still refers to it as a “recall,” even though it requires no action by the vehicle owner. The fix is shipped over the internet and downloaded to the car.
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However, there appears to be a potentially different solution for this problem. Tesla has not developed a remedy for this issue, so it could potentially be on the way. The big issue appears to be the fact that these recalled lamps are out of production, and this is an old body style for both vehicles. The headlights and front-end designs are completely different.
Tesla switched to another supplier when the affected headlight design was discontinued. It plans to begin notifying owners of their remedy options by September 15.
Tesla filed a petition protesting the recall to fix the vehicles’ headlight issue, but the NHTSA denied it. Now, Tesla will come up with a solution to fix it.
Tesla has one big financial question to answer for investors: Morgan Stanley
SpaceX AI investment gamble will make it a big winner, firm says
