Tesla needs to come clean about HW3 before the word ‘fraud’ comes out
The walls are closing on Tesla’s claim that millions of its vehicles with Hardware 3 (HW3) computers will be capable of unsupervised self-driving.
Tesla needs to come clean before the word “fraud” comes out.
Making a mistake is not a fraud. If Tesla really thought that it could deliver unsupervised self-driving to vehicles equipped with HW3 and, at one point, it figured out that it couldn’t, it’s not fraud even though it used that as a selling point for millions of vehicles for years.
However, the moment Tesla figures out that it can’t, it needs to stop selling its Full Self-Driving package to HW3 vehicle owners and come clean to owners about what their vehicle will and will not be able to do, like a robotaxi service.
Has the moment come?
Delivering self-driving on Tesla HW3/self-driving computer
In 2016, Elon Musk announced that all future Tesla vehicles would come equipped with the necessary hardware for self-driving capabilities, even specifying “level 5 self-driving,” which implies the ability to operate autonomously under any conditions. However, shortly after, Musk acknowledged that Tesla might require more onboard computing power than initially thought, leading to the introduction of Hardware 3 (HW3), which Tesla also called its “self-driving computer”.
Musk assured that HW3 would enable full self-driving (FSD) capabilities, promising retrofits for earlier models that had purchased the FSD package. When I bought my own Tesla Model 3 in 2018, it was equipped with the original computer, but since I had purchased the FSD package, Tesla upgraded my car with the new “self-driving computer” in 2019.
Following this, Tesla introduced Hardware 4 (HW4), a more advanced onboard computer system, but did not offer retrofits for older models with HW3, maintaining that HW3 was sufficient for achieving self-driving through software updates.
Musk said that it wouldn’t be “economically feasible” to retrofit HW3 vehicles with HW4, which not only includes a more powerful computer but also better cameras.
Initially, Musk claimed that FSD improvements would first be optimized for HW3, suggesting that HW4 might lag behind by at least “six months”. However, Tesla reversed this approach with the release of FSD version 12.5, which was first deployed to HW4 vehicles. Musk explained that optimizing the software for the less powerful HW3 would take additional time.
This has raised a significant red flag hinting at the limitations of HW3 in handling the latest software advancements towards unsupervised self-driving, a capability Tesla promised to HW3 owners since 2016.
The concern is especially significant within the context that Tesla still has a lot of work to do to deliver its unsupervised self-driving capabilities.
Tesla has always gone out of its way not to release any data regarding its FSD program. Therefore, we have to rely on crowdsourced data, which shows Tesla is currently at about 122 miles between critical disengagement:
According to most experts, Tesla needs a ~1,000x increase in miles between disengagement to deliver on its unsupervised self-driving promises. As you can see, this data shows that Tesla achieved a ~2x improvement over the last 3 years.
On top of this situation, CEO Elon Musk got people even more worried during the launch of the Robotaxi last week.
While discussing his claim that “all Tesla vehicles will be capable of self-driving,” someone in the crowd asked him about the Cybertruck, which Musk quickly answered with a “yes.”
However, when someone asked him about HW3 vehicles, instead of simply responding “yes”, Musk said “Let’s not get nuanced here” and then quickly asked for the next slide:
Now, still at the Robotaxi event last week, some have been pointing to this interaction with Tesla executives Franz von Holzhausen and Lars Moravy saying again that robotaxi-level self-driving is coming to “all cars” after being asked more specifically about HW3 as evidence that Tesla believes it’s still possible to deliver FSD unsupervised on HW3:
With all due respect to von Holzhausen and Moravy, they wouldn’t be the best people to ask. The former is in charge of design and the latter of vehicle engineering, which you would think the FSD program would fall under, but no.
Ashok Elluswamy leads the program at Tesla and reports directly to CEO Elon Musk.
That’s evidenced by some mistakes made even in this short interaction like Moravy saying that Tesla announced its self-driving effort in 2014 when it was in 2016 and him asking if a 2018 Model 3 has HW4, which has never been available on early Model 3 vehicles.
Speaking of the Robotaxi event, Musk said that the new Robotaxi is equipped with a new hardware suite, especially a new on board computer called AI5. He didn’t elaborate on the capacity of the new computer. The vehicle also has a bumper camera, which only the Cybertruck has and no other Tesla vehicle on the road today. The onboard compute power is one thing, but it’s also not the only potential bottleneck for Tesla with older hardware.
Another important piece of evidence pointing to Tesla not being able to deliver unsupervised self-driving on HW3 vehicles is the fact that it doesn’t have any compute redundancy anymore.
Electrek spoke with a well-known Tesla hacker called ‘green‘ who often reveals information about Tesla through his deep dives into the automaker’s software. He actually released the first HW3 images back in 2019.
Green reports that starting in late 2023, Tesla started to use both nodes for its FSD program on HW3 – running some new neural nets on the extra node. Originally, the idea was to have one for redundancy, which is necessary for higher levels of autonomy like levels 4 and 5, but arguably also level 3.
Now, green says that if one of the nodes fails, FSD doesn’t drive anymore. It can still produce FSD visualizations, but that’s about it. That alone basically kisses goodbye to robotaxi-level self-driving on HW3.
It’s also worth noting that shortly after green noticed this change happened, Tesla started to shift its priority from releasing new software on HW4 first rather than HW3.
Tesla is reducing its liability
Tesla has been trying to actively reduce its legal liability regarding HW3 by encouraging people who bought FSD to upgrade to newer vehicles.
For years Tesla owners have been asking Tesla to allow them to freely transfer their FSD package to a new vehicle. It makes sense. Tesla hasn’t delivered the product they have paid for. It’s the bare minimum to allow them to transfer it to a new car.
After years of refusing, Musk eventually agreed to FSD transfer last year, but he called it a “one-time amnesty” and said to take advantage of it.
That turned out not to be true. Tesla brought back the FSD transfer twice more since – with last quarter Musk saying “one more time”. And then, sure enough, Tesla brought it back for a fourth time this quarter.
This fake incentive to upgrade your older car with FSD to a newer one now because it’s the “last time” has a positive effect on Tesla’s liability regarding HW3.
When Tesla resales those used HW3 vehicles with FSD, they use their new language called “(Supervised) Full Self-Driving”, which opens the door for Tesla to say that they are only selling you self-driving that needs to be “supervised” by a driver.
But interestingly, for HW2 vehicle owners who never purchased FSD, Tesla is still selling them a $1,000 HW3 computer upgrade and $2,000 FSD software package ($2,000 if you have Enhanced Autopilot) with still the old language in the upgrade page:
That’s where Tesla would be adding liability as it would be “upgrading” a car to a 5-year-old computer that is already lagging behind on updates to its newer 2-year-old computer (HW4).
Electrek’s Take
Let’s be honest. Tech is rarely supported with software updates after 5-7 years. Tesla Hardware 3 is entering that zone. It is becoming obsolete and normally, it wouldn’t be a problem, but Tesla sold a Full Self-Driving capability package for up to $15,000 based on this hardware that it never delivered.
At the minimum, it will have to reimburse that, but owners can even argue that they bought the car because Elon Musk told them it would become self-driving over time and become an “appreciating asset.”
This could quickly become a very large liability for Tesla, and the way it handles it is also important.
Musk said that retrofits are not economically feasible from HW3 to HW4. It’s true that it would be quite expensive and also likely create an insurmountable amount of work for Tesla’s already overworked service teams. The HW4 computer doesn’t have the same power harness or camera harnesses as the HW3, and it doesn’t share a form factor that fits in the exact same spot.
Also, the cameras have been upgraded with HW4, which raises the question, “Is the computing power the only problem, or does the camera also need to improve?”
If it’s just the computing power, Tesla could potentially design a new computer that could be more easily retrofitted in HW3 cars, but even then, that’s something that needs to be disclosed.
As I said, if Tesla knows that it can’t deliver unsupervised self-driving on HW3, it needs to let owners know right now and stop selling the software package to HW3 owners without a clear plan to make things right. Otherwise, this quickly becomes fraudulent.
The fact that Elon and Tesla have been wrong so many times about self-driving is already not a great confidence builder for them delivering on HW4 vehicles or even on the new AI5 (Robotaxi), but if they are also actively misleading owners, then Tesla becomes untrustworthy.
I am seriously concerned that Tesla is going to rely on the “corporate puffery” defense to frame Elon’s promises as “mere puff”.
After I first brought up the potential of Tesla reaching the limits of HW3 earlier this year, many Elon superfans started to make claims that Tesla and Elon never promised robotaxi-level self-driving capabilities on HW3 cars, which is plain ridiculous.
Tesla could also blame regulators as this is the new language that you have to agree with when buying what is now called “Full Self-Driving (Supervised)”:
The currently enabled Autopilot and Full Self-Driving (Supervised) features require active driver supervision and do not make the vehicle autonomous. Full autonomy will be dependent on achieving reliability far in excess of human drivers as demonstrated by billions of miles of experience, as well as regulatory approval, which may take longer in some jurisdictions. As Tesla’s Autopilot and Full Self-Driving (Supervised) features evolve, your vehicle will be continuously upgraded through over-the-air software updates.
On the very same day that Tesla presented its new Robotaxi, Former President Donald Trump, who Tesla CEO Elon Musk is financially backing to become the next president and who he says he is “all-in” on, said that he would “ban autonomous vehicles on American roads.”
This situation is quite a mess to say the least.
FTC: We use income earning auto affiliate links. More.
Solar is taking off across Africa in a big way. According to a new analysis of China’s solar panel exports data from energy think tank Ember, solar panel imports into the continent jumped 60% in the 12 months through June 2025, setting a record that could reshape electricity systems in many countries.
In that period, Africa imported 15,032 megawatts (MW) of solar panels, up from 9,379 MW the year before. While South Africa has dominated past surges, this wave is happening across the map: 20 countries set new import records, and 25 countries each brought in at least 100 MW, compared to just 15 a year earlier.
Nigeria overtook Egypt to become the second-largest importer with 1,721 MW, while Algeria surged into third with 1,199 MW. Growth rates in some countries were staggering: Algeria’s imports jumped 33-fold, Zambia’s eightfold, Botswana’s sevenfold, and Sudan’s sixfold. Liberia, the DRC, Benin, Angola, and Ethiopia all more than tripled their imports.
Still, import numbers don’t tell the whole story. It’s unclear how many of these panels have been installed yet. Muhammad Mustafa Amjad of Renewables First, an energy transition think tank in Pakistan, pointed out that countries risk losing valuable time and opportunities without proper tracking. “Africa’s transition will happen regardless,” he said, “but with timely data it can be more equitable, planned, and inclusive.”
If these panels do get installed, the impact could be massive. In Sierra Leone, the past year’s imports alone could cover 61% of the country’s 2023 electricity generation. For Chad, it’s 49%. Liberia, Somalia, Eritrea, Togo, and Benin could all boost generation by more than 10% compared to 2023, and 16 countries could see increases of over 5%.
The economic case is also strong. In Nigeria, solar savings from replacing diesel could repay panel costs in just six months, or even less in other countries. In fact, in nine of Africa’s top 10 solar panel importers, the value of imported refined petroleum outweighed solar imports by factors of between 30 to 107.
Ember’s chief analyst, Dave Jones, called the surge “a pivotal moment,” urging more research and reporting to keep pace with the rapid rise to “ensure the world’s cheapest electricity source fulfills its vast potential to transform the African continent.”
Read more: Batteries are so cheap now, solar power doesn’t sleep
The 30% federal solar tax credit is ending this year. If you’ve ever considered going solar, now’s the time to act. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
FTC: We use income earning auto affiliate links. More.
Hyundai and Kia vehicles are popping up on US roads more than ever, and a lot of it has to do with EVs. The South Korean auto giants just hit another milestone as they gear up to introduce several new models.
Hyundai and Kia bet on EVs, hybrids for growth in the US
After launching their first hybrid vehicles in the US in 2011, the Sonata and K5, Hyundai and Kia have come a long way.
Today, two out of ten Hyundai or Kia models sold in the US are considered “eco-friendly,” including electric (EV), hybrid, plug-in hybrid (PHEV), and fuel cell electric (FCEV) vehicles.
After 14 years, Hyundai and Kia announced on Monday that combined, they have now sold over 1.5 million eco-friendly cars in the US. In a statement, the company said it continues seeing strong demand for several models, including the Tucson Hybrid, IONIQ 5, and Niro Hybrid.
Although 14 years is a relatively long time, in the first few years, they only offered a few models. It took 11 years to reach the 500,000 mark in 2022, and in just three years, they’ve since tripled it.
Since reaching 100,000 in annual sales in 2021, brand sales of eco-friendly cars have grown rapidly. Hyundai and Kia sold 182,627 units in 2022, 278,122 units in 2023, and 364,441 units in 2024. This year, they sold over 221,500 in the first six months, up 20% from the same period in 2024.
Hybrids accounted for over 1.1 million, followed by electric vehicles with nearly 375,000, and FCEVs at just over 1,850 units sold.
The Hyundai Tucson Hybrid and Kia Niro Hybrid are the brand’s top-selling eco-friendly cars in the US. Hyundai’s Sonata Hybrid and IONIQ 5 ranked second and fourth. Meanwhile, the Kia Sportage Hybrid and Sorento Hybrid placed third and fifth.
Hyundai and Kia offer 19 eco-friendly vehicles in the US, including eight hybrid and PHEVs, 10 EVs, and just one FCEV.
Both brands sold more vehicles in the US in the first half of the year than ever. With Hyundai now building vehicles at its new EV plant in Georgia, including the 2025 IONIQ 5 and 2026 IONIQ 9, the automaker expects the growth to continue. Kia assembles the EV6 and EV9 at a separate plant in Georgia, and will introduce the EV4, its first electric sedan, in early 2026.
Based on the advanced E-GMP platform, Hyundai and Kia’s electric vehicles offer some of the longest driving ranges, fastest charging speeds, and remain surprisingly affordable.
With leases starting as low as $159 per month, the 2025 Hyundai IONIQ 5 is one of the most affordable EV lease deals in the US. Even the three-row IONIQ 9 is listed with monthly leases as low as $299. That’s pretty cheap for a nearly $60,000 three-row electric SUV.
Hyundai will continue to offer hybrids in response to the changing policies under the Trump Administration. It also plans to add hybrid production in Georgia, starting next year.
Looking to check one out for yourself? We can help you find vehicles in your area. You can use our links below to view Hyundai and Kia models near you.
FTC: We use income earning auto affiliate links. More.
Three years after the Inflation Reduction Act (IRA) became law, Rewiring America is rolling out a new effort to make sure homeowners don’t miss out on major savings.
The Save on Better Appliances campaign is designed to help families take advantage of federal energy tax credits before they expire at the end of 2025, while also showing how modern electric appliances can cut long-term energy costs.
With utility bills climbing, the group is highlighting the benefits of heat pumps, heat pump water heaters, rooftop solar, and other upgrades that can keep homes comfortable while protecting against future price spikes. For many households, energy-efficient appliances are one of the few ways to bring bills under control – and that value remains even after federal incentives are gone.
Right now, homeowners can still access the federal Energy Efficient Home Improvement Credit (25C) and Residential Clean Energy Credit (25D). On top of that, thousands of state, local, and utility-level incentives are available to help offset upfront costs.
Ari Matusiak, CEO of Rewiring America, pointed out that the IRA incentives were never meant to last forever:
Congress’s decision to repeal them prematurely means households should act fast. But the savings, comfort, and long-term value of these upgrades remain. For homeowners ready to act, we have the tools to help. And for those who need more time, we’re working to expand your options and ensure that these upgrades make financial sense whenever the moment is right.
What the campaign offers
The Save on Better Appliances campaign runs through October and includes:
- A central hub where homeowners can learn about the expiring credits, check out state, local, and utility incentives, and connect with vetted contractors.
- Weekly Zoom drop-in sessions with Certified Electric Coaches, starting September 3, to answer questions about home upgrades.
- Contractor tools, including Rewiring America’s Contractor Finder, soon to be integrated with the BetterHVAC directory for more trusted installer options.
- A new Single-Project Personal Electrification Planner to help homeowners map out common projects like heat pumps, energy audits, and electrical upgrades.
“I’ve been doing HVAC installations for the past 40 years, and I can tell you that I’ve seen firsthand how the 25C tax credit has made heat pumps, the most efficient HVAC technology, more affordable and accessible for homeowners,” said Scotty Libby, owner of Maine-based Royal River Heat Pumps. “Homeowners should talk to their local contractors now if they want to upgrade their HVAC, take advantage of the tax credit, and lock in the potential long-term energy savings a heat pump would provide.”
Beyond tax credits
Rewiring America is also working with manufacturers, contractors, and lenders to make upgrades more affordable, even without federal help. In Rhode Island and Colorado, families can already access specially priced heat pump packages, with more states on the way. These deals will expand in 2026 and beyond, lowering upfront costs no matter what happens in Washington.
Across the country, state agencies, utilities, and local nonprofits are already leading creative programs to help families save money, find trusted contractors, and begin electrifying their homes. Rewiring America says this campaign is about amplifying that work and making it easier for households to take the first step.
“Tax credits may expire, but the benefits of better HVAC – lower bills, healthier homes, and lasting comfort – are here to stay. That’s why we’re supporting Rewiring America’s campaign,” said Bill Spohn, Sr., president of the Better HVAC Alliance.
Read more: US EV sales stay strong, but looming tariffs threaten affordability
The 30% federal solar tax credit is ending this year. If you’ve ever considered going solar, now’s the time to act. To make sure you find a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage, a free service that makes it easy for you to go solar. It has hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20-30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.
Your personalized solar quotes are easy to compare online and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.
FTC: We use income earning auto affiliate links. More.
-
Sports3 years ago‘Storybook stuff’: Inside the night Bryce Harper sent the Phillies to the World Series
-
Sports1 year agoStory injured on diving stop, exits Red Sox game
-
Sports2 years agoGame 1 of WS least-watched in recorded history
-
Sports2 years agoMLB Rank 2023: Ranking baseball’s top 100 players
-
Sports4 years ago
Team Europe easily wins 4th straight Laver Cup
-
Sports2 years agoButton battles heat exhaustion in NASCAR debut
-
Environment2 years agoJapan and South Korea have a lot at stake in a free and open South China Sea
-
Environment11 months agoHere are the best electric bikes you can buy at every price level in October 2024