Tesla owners with vehicles on the Hardware 3 platform may have to wait for their dream of unsupervised Full Self-Driving (FSD) to come true. CEO Elon Musk, speaking during the Q1 2026 earnings call, confirmed that these millions of cars will not receive this feature unless upgraded.

Musk explained that Hardware 3 simply lacks the necessary memory bandwidth for unsupervised FSD, highlighting its limitations compared to the newer Hardware 4. Tesla’s solution is a discounted trade-in for AI4 hardware or an upgrade process that requires replacing cameras as well.

For efficiency, Tesla plans to establish microfactories in major cities for these upgrades. Musk hinted at the eventual conversion of all HW3 cars to HW4, saying it will enable them to enter robotaxi fleets and gain unsupervised FSD capabilities.

The confirmation comes as no surprise to some, given Musk’s admission last year that upgrades would be necessary for HW3 owners who purchased FSD. However, the news still dampens hopes among many eager Tesla users.