Tesla Breaks Hardware Compatibility Promise, Will Require Millions of Owners to Pay for Upgrades

Tesla acknowledged that millions of vehicle owners equipped with Hardware 3 compute platforms (2019–2023 sales) cannot run future Full Self-Driving iterations without costly hardware upgrades. The admission reverses Tesla's prior promise of lifetime HW3 compatibility. The company plans city-based microfactories to handle retrofits, allocating part of its $25 billion 2026 capital budget to the operation. Pricing and timeline remain undisclosed.