Tesla’s ‘Full Self-Driving Supervised’ enlargement is again firing because it exposes its shortcomings. Prospects left with out promised options are rising discontent and demanding to be compensated.
It’s turning right into a multi-billion-dollar iceberg of Tesla’s personal making.
In 2016, Tesla proudly introduced that each one its automobiles produced onward are geared up with “all of the {hardware} for full self-driving,” which might be delivered via future software program updates.
The automaker turned out to be considerably flawed about that.
On the time, it was producing its electrical automobiles with a {hardware} suite generally known as HW2, which it needed to improve to HW3 as a result of it couldn’t assist self-driving (FSD) functionality.
HW3 was produced in automobiles from 2019 to 2023 and Tesla switched to HW4 in 2024.
At first, CEO Elon Musk claimed that FSD software program updates on newer HW4 vehicles would lag roughly 6 months behind updates to HW3 vehicles to ensure to ship the promised self-driving functionality to those that have been ready and paid for the promised capabiltiy a very long time in the past.
That technique barely lasted just a few months. Tesla shortly began releasing new FSD updates to HW4 vehicles first and it now hasn’t launched a big replace to HW3 vehicles in near a yr.
Tesla solely admitted in January 2025 that HW3 gained’t be capable of assist unsupervised self-driving. Musk claimed that Tesla would retrofit the computer systems, however there was no phrase about it for 10 months.
Tesla prospects are beginning to be fed up.
The catalyst is Tesla’s present FSD enlargement in worldwide markets. Beforehand, Tesla’s FSD was restricted to North America, however during the last yr, the automaker has been increasing FSD to China and now Australia and New Zealand.
Nevertheless, the enlargement is back-firing as HW3 homeowners are beginning to notice that they are going to by no means get what they paid for.
In Australia and NZ, Tesla solely launched FSD on HW4 automobiles with no clear plan for HW3, which the automaker already admitted gained’t assist unsupervised self-driving. The automaker seems to have solely tailored its newest model of FSD for HW4 to the Australian market.
So as to add to the insult, with the launch of FSD in Australia, Tesla began to supply FSD subcriptions for $149 AUD a month for each HW3 and HW3 vehicles regardless of the software program not being accessible for HW3.
HW3 homeowners reached out to Electrek after seeing this of their app:
It’s unclear why would Tesla promote a subcription to one thing that doesn’t even exist, however it’s not serving to construct confidence with prospects.
To attempt to appease homeowners, Tesla began sending emails to Australia HW3 homeowners providing $5,000 reductions on new stock automobiles when transfering their FSD package deal:
Nevertheless, this supply is deceptive in itself, as it’s not really particular to HW3 homeowners as the e-mail leads folks to consider.
A go to on Tesla’s Australia stock web site exhibits that Tesla is providing a $5,000 disounct on all stock automobiles with FSD for any purchaser:
Due to this fact, it has nothing to do with “loyalty”.
As we just lately reported, 1000’s of Tesla homeowners have now joined a category motion lawsuit in Australia over Tesla deceptive prospects with its self-driving guarantees.
It provides to comparable ongoing lawsuits within the US and China.
With a whole lot of 1000’s of FSD prospects who paid as much as $15,000 for package deal, Tesla is on the hook for billions of {dollars} in compensations or retrofits within the best-case situation.
Electrek’s Take
We’re seeing extra folks shedding persistence and it’s only going to worsen.
There have been plenty of attention-grabbing interactions on this publish, which is fairly gentle for my part. And but, you see the standard Elon lemmings downplaying Tesla not delivering options it promised:
I don’t wish to burst anybody’s bubble, however we have to be real looking right here. In case you are a HW3 proprietor and nonetheless suppose that Tesla goes to retrofit your as much as 10-years-old automotive with a pc that’s going to make self-driving, you’re being delusional.
Tesla should find yourself compensating homeowners and at this level, I’ve critical doubts that it’ll do it by itself with out being compelled via courts.
Moreover, it shouldn’t be simply individuals who purchased FSD. Tesla stated that each one vehicles had the {hardware} able to self-driving whether or not folks purchased the software program package deal or not. If that’s not true, it impacts the resale worth of the automobile no matter if somebody bought the package deal.
I’ve a reasonably easy answer for Tesla to make it proper.
Tesla wants to supply all HW3 homeowners a $5,000 loyalty low cost, that goes on prime of all different incentive program, when upgrading to a brand new automotive.
As for HW3 homeowners who purchased FSD, which mainly turned out to be an curiosity free mortgage to Tesla for years, the automaker wants to supply free FSD switch and a $10,000 low cost on a automotive improve.
Whereas this would possibly sound like quite a bit, I feel it’s according to the unimaginable legal responsibility that Tesla is going through from all of the on going lawsuits.
On prime of it, it would go an extended option to regain the belief of long-time prospects, which Tesla swindled by promoting them options it merely can’t ship.
The principle purpose why I feel Tesla doesn’t wish to do that’s that it’ll possible need to do the identical factor to HW4 homeowners within the subsequent few years and that will be the loss of life of the corporate.
