Tesla CEO confirmed on a quarterly earnings call that millions of Tesla owners with Hardware 3 vehicles will need hardware upgrades — new computers and cameras — to run future unsupervised Full Self-driving software. This contradicts years of promises from Tesla and raises potential legal exposure. The scale of upgrades is so large Tesla is considering building dedicated 'micro-factories' in major cities to handle the volume. Tesla's CFO had said as recently as October 2025 that Hardware 3 might still work, but now the company is unequivocal: Hardware 3 cannot achieve unsupervised FSD.

3m read timeFrom techcrunch.com
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