Tesla adjusts AI3 retrofit schedule, holding off until Full Self-Driving Unsupervised becomes available.
In a recent development, Tesla's Full Self-Driving (FSD) upgrade for HW3 vehicles, also known as AI3, remains on hold[1]. The automotive giant has confirmed that the hardware upgrade for existing vehicles will not begin until FSD Unsupervised is fully solved and deployable to customers[1].
This delay arises due to the power and cooling requirements of newer hardware exceeding what HW3 vehicles can support, making a retrofit complex and costly—potentially involving more than a simple computer swap[1].
Tesla's CFO, Vaibhav Taneja, stated that once FSD Unsupervised is complete on HW4 vehicles, they will evaluate the requirements for HW3 vehicles[2]. The company's current focus is to get FSD Unsupervised done on HW4 before addressing HW3 vehicles[3].
Elon Musk, Tesla's CEO, has hinted plans to upgrade the older self-driving computers, with the potential debut of HW4/AI4 and AI5 starting from October 2024[4]. He also mentioned plans to integrate elements of the Austin build into the general production release[5].
However, no new information has been provided on a timeline for the rollout of FSD Unsupervised[6]. Musk has a history of over-promising when it comes to achieving true Full Self-Driving[7], [8].
Meanwhile, Tesla's robotaxi launch in Austin has been successful[9]. The company has started launching unsupervised FSD as a paid service in Austin as of June 2025, but this rollout appears limited and supervised for now[9].
The earliest Model 3 vehicles equipped with AI3 are now approaching 8-9 years old[10]. Many AI3 vehicle owners may not benefit from an FSD upgrade if the rollout of FSD Unsupervised takes much longer.
On a positive note, HW5/AI5 is expected to debut in vehicles starting in late 2026[11]. Musk made those plans official in January 2025, stating that it would be "painful and difficult."
Tesla has offered incentives for owners to transfer their FSD package to a new vehicle, but it has not been made permanent[12]. There is a possibility that even HW4/AI4 might not fully support FSD Unsupervised, requiring retrofits or hardware upgrades[13].
In summary, if you own an HW3/AI3 vehicle, expect to wait until after Tesla finalizes FSD Unsupervised and develops a compatible upgrade solution—which may extend beyond 2025. The focus remains on getting FSD Unsupervised ready for HW4 vehicles before addressing HW3 upgrades.
The delay in the FSD upgrade for HW3 vehicles, which is crucial for the automotive industry's autonomous transportation approaches, is affecting the finance sector as well, as the potential cost of a retrofit may not be feasible for many vehicle owners. Furthermore, the progress in technology, with plans for HW4/AI4 and AI5 debuting in late 2024 and 2026 respectively, raises questions about the future of the finance and automotive industries' collaboration in the development of self-driving vehicles.
