Tesla Says Hardware 3 Lacks Capability for Unsupervised FSD, Offers Upgrade Path
CEO reveals memory bandwidth limitation, plans microfactory installations for Hardware 3 to Hardware 4 conversions
Quick Look
- Tesla executives acknowledged that Hardware 3 computers cannot achieve unsupervised Full Self-Driving due to having only one-eighth the memory bandwidth of Hardware 4.
- The company plans to offer discounted trade-ins for cars with AI4 hardware and computer upgrades, though camera replacement is also required.
- Microfactories will be established in major metropolitan areas to efficiently handle conversions, with the long-term goal of converting all Hardware 3 vehicles to enable robotaxi fleet entry.
AI-generated summary
Why It Matters
Tesla has been developing Full Self-Driving technology for years, with Hardware 3 being the previous generation computer. The company has promised unsupervised FSD capabilities for robotaxi services.
I wish it were otherwise, but Hardware 3 simply does not have the capability to achieve unsupervised FSD. We did think at one point it would have that, but relative to Hardware 4, it has only one-eighth of the memory bandwidth of Hardware 4. And memory bandwidth is one of the key elements needed for unsupervised FSD. For customers that have bought FSD, what we're offering is essentially a discounted trade-in for cars that have AI4 hardware. We'll also be offering the ability to upgrade the car to replace the computer. And you also need to replace the cameras, unfortunately, to go to Hardware 4. To do this efficiently, we're going to have to set up microfactories, or small factories, in major metropolitan areas in order to do it efficiently. If it's done at the service center, it's extremely slow to do so and inefficient. We basically need mini production lines to make the change. I do think over time it's going to make sense for us to convert all Hardware 3 cars to Hardware 4, because that's what enables them to enter the robotaxi fleet and have unsupervised FSD.
What to Watch
AI outlook — possibilities, not facts
Tesla will announce specific pricing for Hardware 3 to Hardware 4 upgrades
Likely · Within weeks
Microfactory locations will be announced for major metropolitan areas
Likely · Within months
Open Questions
- When will microfactories be operational?
- What is the exact cost for customers?
- How many Hardware 3 vehicles are currently on the road?
