Tesla has finally revealed the reality about full self-driving capabilities in older vehicles, and it brings a glimmer of hope amid uncertainty.

      This marks a pivotal moment that highlights the disparity between years of ambitious commitments and the actual limitations of what software can deliver on its own.

      For several years, Tesla owners with Hardware 3 vehicles (produced between 2019 and 2023) have been anticipating a software upgrade that would enable fully autonomous driving. Yet, on April 22, 2026, during Tesla’s earnings call, Elon Musk provided an answer that was not what many had expected.

      Musk stated that the cars equipped with the company’s third-generation hardware cannot achieve unsupervised Full Self-Driving through software alone; they require hardware upgrades. This means that roughly four million vehicles sold worldwide cannot attain FSD (according to TechCrunch).

      What exactly did Musk say regarding FSD and Hardware 3 cars?

      “Hardware 3 simply does not possess the capability to achieve unsupervised FSD,” Musk explained during the call. Instead, Tesla’s Hardware 3 vehicles require a new computer and new cameras to fulfill the FSD promise (via over-the-air updates) that the company has been advocating for years.

      FSD has been a key selling point that led many buyers to choose these vehicles initially, making this announcement disappointing for those who acquired their Tesla EVs between 2019 and 2023.

      The following table lists the models that utilized Hardware 3:

      | Model Type | HW3 Period | Notes |

      |------------------|-----------------------|-----------------------------------------------------|

      | Model S & Model X| Retrofit | Oct 2016 – Mar 2019; initially shipped with HW2.0 or HW2.5; upgraded free to HW3 |

      | Model 3 | Retrofit | 2017 – mid-2019; early units shipped with HW2.5; retrofitted to HW3 |

      | Model S & Model X| Factory Built | Mar 2019 – Jan 2023; shipped standard with HW3 from factory |

      | Model 3 | Factory Built | Apr 2019 – late 2023; standard until the “Highland” refresh (Oct 2023 in most markets; Jan 2024 in US) |

      | Model Y | Factory Built | 2020 – May 2023 (US); US-made cars until May 2023; some China-produced models as late as Feb 2024 |

      So, what’s the status for Hardware 3 owners?

      Currently, they are not entirely left without options. Tesla plans to continue providing incremental FSD software updates for its Hardware 3 vehicles; however, achieving true autonomy necessitates the hardware upgrades mentioned previously.

      The scale of this undertaking is considerable enough that the company is considering establishing “micro-factories” in major urban areas to manage the workload, as existing service centers cannot handle the volume of upgrades on their own.

      Importantly, Tesla has not confirmed publicly whether the hardware upgrades will be free for buyers who paid for the FSD capability upfront or if additional costs will apply. There are speculations about a discounted trade program, suggesting that owners may be able to trade in their Hardware 3 vehicles for a discount toward newer Hardware 4 models, but Tesla has not verified these claims at this time.

      It appears that Tesla is aware of the reputational and legal implications of inaction, and the decision on whether owners will receive free upgrades or be subject to extra costs (after paying for the FSD add-on) could influence whether this acknowledgment becomes a gesture of goodwill from the company or leads to backlash from buyers.

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