The director of it all, Elon Musk, has already said that it will be expensive when Tesla has to pay for new computers for 100,000 cars. But they have to pay.
Many Tesla owners with the Full Self-Driving package have outdated HW3 hardware. Elon Musk is now promising a replacement for HW4, but it will be an expensive affair for Tesla.
Elon Musk is facing a big task. Around 100,000 Tesla cars with the fully self-driving package called FSD will need to have their computers replaced.
The current hardware, known as HW3, is not sufficient for full self-driving technology. Tesla must now find a solution for affected car owners.
The problem lies in the cars' computers and cameras. Cars sold as recently as two years ago came with the older HW3 hardware.
To achieve full autonomous functionality, the newer HW4 computer is required. It has a faster processor and better, higher resolution cameras.
According to Electrek , there are around four million Teslas globally with the older HW3 hardware.
It is unclear exactly how many owners paid extra for the FSD package, but it is estimated that 100,000 Tesla customers may have paid for the technology based on the outdated computer.
Many Tesla buyers have paid a significant amount for the cap on future self-driving technology. In Denmark, the FSD package cost 50,000 kroner. Many may have paid that money without Tesla actually being able to deliver it.
Tesla CEO Elon Musk has acknowledged the challenge.
However, he promises that Tesla will replace the computers for customers who have purchased the FSD package.
"It will be painful and difficult, but we will get it done," Elon Musk said.
Financial consequences for Tesla
Replacing the hardware in 100,000 cars could be an expensive affair for Tesla. It is expected to cost the company billions of kroner. The extent of the expense depends on the final logistical and technical solutions.
However, Elon Musk is in a way relieved that we have now reached a point where the only way out is to replace the computers.
– Now I'm glad that not many people have bought the self-driving package.
Another option for Tesla is to compensate affected owners. This could involve refunding the price of the FSD package. This would avoid the logistical challenges of a large-scale hardware replacement.
The situation is further complicated by legal challenges. In the US, several lawsuits are currently being filed against Tesla, which could potentially create more problems for the automaker in the future.
Tesla has already lost a lawsuit that may be related to the current problem. It happened back in 2022.
A judge ruled that Tesla had to upgrade the computer in a car at no additional cost to the owner, even if the owner had not purchased the FSD package.
Tesla's promises about self-driving technology
The judge's decision was based on Tesla's previous statements. The company had said that "all cars manufactured since 2016 have the hardware required for full self-driving capability."
That promise was held up against Tesla in court.
Although Tesla has been marketing and selling "Full Self-Driving" (FSD) cars for years, the technology is still not fully developed or approved. The feature is in beta and requires constant monitoring. The promise of full autonomy from the cars has never been met.
The development of self-driving technology is central to Tesla's future strategy. Elon Musk sees it as a crucial part of the company's value.
However, the challenges with hardware upgrades demonstrate the complexity of realizing the vision.
The situation with Tesla's computers and self-driving technology is constantly evolving. At Boosted.dk you can find more news about Tesla and developments within electric cars and automotive technology.
Americans, on the other hand, are far from the only ones who have to replace otherwise brand new computers in newer or brand new cars. Volvo risks a similar billion-dollar bill. Read more about it here .
