Elon Musk Admits He Lied to Tesla Customers' Faces for Years About Self-Driving
Key Points:
- Tesla CEO Elon Musk admitted in January 2025 that the Hardware 3 (HW3) system installed in millions of Tesla vehicles since 2019 is insufficient for achieving fully autonomous driving, contradicting earlier promises.
- The HW3 limitation, specifically its "memory bandwidth" bottleneck, means a costly retrofit to Hardware 4 (HW4) is necessary for true unsupervised Full Self-Driving (FSD), disappointing many customers who paid extra for FSD capabilities.
- Musk announced plans to establish "microfactories" in major cities to facilitate the hardware upgrades, aiming to enable Tesla cars to join the Robotaxi fleet with unsupervised FSD, though details and timelines remain unclear.
- The delayed hardware upgrade and perceived misleading marketing have sparked multiple class action lawsuits from Tesla owners, while the financial strain of new production lines raises concerns amid Tesla's declining profitability.