Musk pledges to fix 2019-2023 Teslas that can't fully self drive

Tesla still doesn’t have a solid pathway for how to give Hardware 3 cars Full Self-Driving (FSD) capabilities, based on what Elon Musk said during the company’s latest earnings call.

Tesla's inability to provide Full Self-Driving capabilities to its Hardware 3 cars has been a longstanding issue, with the company acknowledging the problem during its latest earnings call. Elon Musk stated that a solid pathway for giving these cars FSD capabilities has not been established. The affected vehicles were manufactured between 2019 and 2023, with the total number of impacted cars estimated to be in the hundreds of thousands. The cost of retrofitting these vehicles with the necessary hardware is expected to be substantial, potentially exceeding $1 billion.

The lack of FSD capabilities in Hardware 3 cars directly affects the resale value of these vehicles, as buyers are willing to pay a premium for cars with advanced autonomous features. As a result, owners of these cars may see a decrease in their vehicle's value, potentially losing thousands of dollars. This decrease in value can also impact the overall market for used Teslas, making it more difficult for owners to sell their cars. The financial impact of this issue will be felt by individual car owners and the broader used car market.

The issue with Hardware 3 cars is not an isolated incident, but rather part of a larger pattern of challenges faced by Tesla in its development of autonomous driving technology. The company has been working on FSD capabilities for several years, with numerous delays and setbacks along the way. Insiders know that the development of autonomous driving technology is a complex and difficult task, requiring significant advances in software, hardware, and testing. The company's struggles with FSD have been well-documented, with many experts questioning the feasibility of Tesla's ambitious goals for autonomous driving.

In the coming weeks, Tesla is expected to provide an update on its FSD development timeline, with a potential announcement on the company's plans for retrofitting affected vehicles. The update is expected to coincide with the company's annual shareholder meeting, scheduled for June. One surprising detail that reframes the whole story is that Tesla's competitors, such as General Motors and Ford, have been making significant progress in their own autonomous driving development, potentially closing the gap with Tesla and challenging the company's position as a leader in the field.