TEXAS – Tesla owners who expected to enjoy fully autonomous driving in their vehicles might be in for a disappointment. After years of promises, Elon Musk has finally admitted that models equipped with Hardware 3, which were sold as being ready for full self-driving, will need an upgrade.

This announcement is not going over well—especially among those who paid thousands of dollars for the Full Self-Driving (FSD) package.

Since 2016, Elon Musk has repeatedly claimed that Tesla cars had the necessary hardware for full self-driving. However, during a call with shareholders, the company’s CEO dropped a bombshell: vehicles equipped with Hardware 3 won’t be enough. To run the self-driving software currently in development, an upgrade to Hardware 4 will be required.

“I think the most honest answer is that we’re going to have to upgrade the Hardware 3 computer for people who bought Full Self-Driving,” Musk admitted, adding that it will be “painful and difficult.” His statement quickly set off a firestorm on forums and social media, with many customers calling it a major reversal.

A Costly Upgrade, but Covered by Tesla

For those who paid $12,000 for the FSD package in the U.S., this announcement is a shock. Many believed they had purchased a vehicle ready for full autonomy, only to now find out their hardware is obsolete before the technology is even available.

The silver lining? Tesla will cover the cost of the upgrade to Hardware 4. This decision is likely driven as much by the desire to ease customer frustration as by the company’s need to avoid legal trouble. In fact, Tesla was previously sued for false advertising after promising an upgrade from Hardware 2 to Hardware 3.

But this move will come at an enormous cost to Tesla, which is already facing intensifying competition from Chinese automakers and struggling with financial pressures.

An Admission That Doesn’t Surprise Everyone

While this announcement has shocked Tesla owners, some industry watchers see it as a predictable outcome of the repeated delays in Full Self-Driving. Since 2016, Elon Musk has continuously promised that full autonomy was just around the corner—only to repeatedly push back the timeline.

In 2019, owners of Hardware 2 and 2.5 were required to upgrade to Hardware 3 to keep their hopes alive for future self-driving capabilities. At the time, Tesla was forced to offer the upgrade for free after being accused of misleading advertising.

Now, history seems to be repeating itself. And The looming question is: will today’s Hardware 4 owners face the same issue in a few years?

Full Self-Driving: A Technology That Remains Out of Reach

Beyond the controversy over hardware, one harsh truth remains: Full Self-Driving is still not available. Despite years of development and real-world testing, the final version of the software has yet to be released.

Meanwhile, competitors are making progress. Waymo, Cruise, and Chinese firms like XPeng are pushing ahead in the race for autonomous vehicles, putting more pressure on Tesla.

The ultimate question is whether Tesla will ever fulfill its promise of full autonomy. For now, customers who paid for the feature are still waiting, and many are running out of patience.