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Tesla MCU1 to MCU2 retrofit and FSD upgrade insights shared by Model S owner
Tesla recently started offering the option of upgrading the company’s older MCU1 units to an MCU2, which provides access to new features such as Sentry Mode and Tesla Theater. The process involved in this upgrade was recently shared by an owner of a 2017 Tesla Model S, who recently opted to purchase the MCU2 retrofit together with a Hardware 3 update.
Akikiki of the Tesla Motors Club forum gave details of the experience and the changes in his vehicle’s performance and features thanks to the hardware upgrades. The addition of MCU2 and Hardware 3 gave the Model S new features from the Full Self-Driving (FSD) suite’s Navigate on Autopilot feature, as well as the vehicle’s capability to visualize traffic lights, stop signs, and on-road markings.
The 2017 Model S “now has visualization that includes traffic lights, showing red, changing to green at the intersection,” Akikiki wrote. “As I drove under the light, they got larger showing green, until they disappeared as I went under them.”
The installation of the HW3 unit required for a recalibration of the Model S’ Autopilot system. The vehicle alerted Akikiki with a message on the vehicle’s Instrument Cluster (IC), stating, “CALIBRATION IN PROCESS.” The recalibration of Autopilot took ten miles total and allowed the driver to operate with Navigate on Autopilot, allowing the new visualizations to appear. The vehicle’s lane centering and steadiness while operating on Autopilot were reportedly improved with Hardware 3 installed.
Additionally, the Model S gained the ability to operate both Dashcam and Sentry Mode, both of which have been subjected to recent updates as recorded clips from both features can soon be viewed within the vehicle. Watching recorded clips in the car was previously not possible, but CEO Elon Musk and his team of engineers added the function with a recent update.
Additional features included a new WiFi card in the MCU2 that supports both 2.4 and 5GHz internet speeds, along with the vehicle’s internet browser, Tesla Theater, and Tesla Arcade.
The invoice states that the upgraded features of the Model S required Akikiki to pay a total of $2,500, all of which can be attributed to the MCU2 upgrade. The HW3 upgrade was free of charge because Akikiki purchased the FSD suite, qualifying him for a free HW3 retrofit, as per Elon Musk’s tweet back in October 2018.
Initially, Akikiki considered merely replacing the MCU1 chip, but he found that the upgrade would be just $1,000 less than the full MCU2 upgrade. “Although under warranty, the MCUs eMMC would still have the same size chip and would likely have another short life,” he said. “Out of warranty MCU1 repair would cost by today’s cost at least $1700+ including Tax. MCU2 cost is only $1,000 more than the MCU1 replacement and, in my opinion, is worth double that difference for longer life, better performance of AP and NAV plus the addition of Tesla Dashcam and Sentry.”
Older Tesla vehicles are being upgraded, so owners can experience the newest pieces of the company’s technology without having to buy a whole new car. For the Model S owner, his 2017 sedan now runs on the same hardware that Tesla’s latest vehicles operate on, giving it full range to drive and maneuver with the help of the company’s FSD suite. Not only does this increase the value of an older car immediately for owners, but it also contributes to safer driving conditions for Tesla owners and other vehicles on the road.
Tesla analyst Gary Black of The Future Fund claims that the company is making a big mistake getting rid of the Model S and Model X. Instead, he believes another vehicle within the company’s lineup should be discontinued: the Cybertruck.
Black divested The Future Fund from all Tesla holdings last year, but he still covers the stock as an analyst as it falls in the technology and autonomy sectors, which he covers.
In a new comment on Thursday, Black said the Cybertruck should be the vehicle Tesla gets rid of due to the negatives it has drawn to the company.
The Cybertruck is also selling in an underwhelming fashion considering the production capacity Tesla has set aside for it. It’s worth noting it is still the best-selling electric pickup on the market, and it has outlasted other EV truck projects as other manufacturers are receding their efforts.
Black said:
“IMHO it’s a mistake to keep Tesla Cybertruck which has negative brand equity and sold 10,000 units last year, and discontinue S/X which have strong repeat brand loyalty and together sold 30K units and are highly profitable. Why not discontinue CT and covert S/X to be fully autonomous?”
IMHO it’s a mistake to keep $TSLA Cybertruck which has negative brand equity and sold 10,000 units last year, and discontinue S/X which have strong repeat brand loyalty and together sold 30K units and are highly profitable. Why not discontinue CT and covert S/X to be fully…
— Gary Black (@garyblack00) January 29, 2026
On Wednesday, CEO Elon Musk confirmed that Tesla planned to transition Model S and Model X production lines at the Fremont Factory to handle manufacturing efforts of the Optimus Gen 3 robot.
Musk said that it was time to wind down the S and X programs “with an honorable discharge,” also noting that the two cars are not major contributors to Tesla’s mission any longer, as its automotive division is more focused on autonomy, which will be handled by Model 3, Model Y, and Cybercab.
Tesla begins Cybertruck deliveries in a new region for the first time
The news has drawn conflicting perspectives, with many Tesla fans upset about the decision, especially as it ends the production of the largest car in the company’s lineup. Tesla’s focus is on smaller ride-sharing vehicles, especially as the vast majority of rides consist of two or fewer passengers.
The S and X do not fit in these plans.
Nevertheless, the Cybertruck fits in Tesla’s future plans. Musk said the pickup will be needed for the transportation of local goods. Musk also said Cybertruck would be transitioned to an autonomous line.
In a groundbreaking new report from Reuters, SpaceX is reportedly discussing merger possibilities with xAI ahead of the space exploration company’s plans to IPO later this year, in what would be a blockbuster move.
The outlet said it would combine rockets and Starlink satellites, as well as the X social media platform and AI project Grok under one roof. The report cites “a person briefed on the matter and two recent company filings seen by Reuters.”
Musk, nor SpaceX or xAI, have commented on the report, so, as of now, it is unconfirmed.
With that being said, the proposed merger would bring shares of xAI in exchange for shares of SpaceX. Both companies were registered in Nevada to expedite the transaction, according to the report.
On January 21, both entities were registered in Nevada. The report continues:
“One of them, a limited liability company, lists SpaceX and Bret Johnsen, the company’s chief financial officer, as managing members, while the other lists Johnsen as the company’s only officer, the filings show.”
The source also stated that some xAI executives could be given the option to receive cash in lieu of SpaceX stock. No agreement has been reached, nothing has been signed, and the timing and structure, as well as other important details, have not been finalized.
SpaceX is valued at $800 billion and is the most valuable privately held company, while xAI is valued at $230 billion as of November. SpaceX could be going public later this year, as Musk has said as recently as December that the company would offer its stock publicly.
The plans could help move along plans for large-scale data centers in space, something Musk has discussed on several occasions over the past few months.
At the World Economic Forum last week, Musk said:
“It’s a no-brainer for building solar-powered AI data centers in space, because as I mentioned, it’s also very cold in space. The net effect is that the lowest cost place to put AI will be space and that will be true within two to three years, three at the latest.”
He also said on X that “the most important thing in the next 3-4 years is data centers in space.”
If the report is true and the two companies end up coming together, it would not be the first time Musk’s companies have ended up coming together. He used Tesla stock to purchase SolarCity back in 2016. Last year, X became part of xAI in a share swap.
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.
Tesla analyst claims another vehicle, not Model S and X, should be discontinued
SpaceX reportedly discussing merger with xAI ahead of blockbuster IPO
