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.
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I recently attended Strutt’s Demo Day to check out the company’s new EV1 mobility device, and even if you’ve never paid attention to electric wheelchairs before, you’ll still probably find this interesting.
The EV1 isn’t really a wheelchair in the traditional sense. It’s closer to an autonomous robot that just happens to take the form of a chair. Imagine a self-driving car fused with a humanoid robot, shrunk down to indoor-outdoor mobility scale. That’s the EV1. And after having spent some seat time in it, I can tell you that this technology is going to change lives.
This isn’t my normal scene – you’re much more likely to see me testing out wild new e-bikes or powerful electric motorcycles. But I was intrigued by the idea of a new type of electric mobility device that had the potential to change not just the way people get around, but the way they live. And I’m glad I followed that hunch and visited Strutt’s Demo Day.
If you want to experience the demos and live testing yourself, or rather vicariously through me, then check out my video below. It’s a fascinating experience.
Then keep reading for my complete thoughts.
At its core, the EV1 is a mobility device that can drive itself and think for itself. But the level of tech onboard goes far beyond basic autonomy. It uses a full suite of sensors – lidar, vision cameras, ultrasonic sensors, and more – to constantly map its environment.
As the engineers explained to us, it’s actually a much trickier problem to solve than a self-driving car like Waymo, since self-driving cars generally stick to the simplified world of car lanes. But a mobility device needs to be able to autonomously navigate everything from a packed shopping mall to a grassy park path to the livingroom – all without accidentally driving itself down the stairs or over the family dog. That means the EV1 gets an array of overlapping sensors that would make a Tesla jealous.
And despite all that tech, the entire machine breaks down into five major pieces without tools, without unplugging wires, and without any fuss. In about 30 seconds, it’s ready to be lifted into the trunk of a car. Or for those with a vehicle large enough, it can just drive itself up the ramp and park itself in a vehicle all by itself.
It also includes built-in AI navigation. You can literally tell it where you want to go, like asking it to take you into the kitchen to grab a drink, and it will plan the route and drive you to your fridge. That may sound like a demo-party gimmick until you consider how transformative it could be for people who currently have to navigate narrow, cluttered, or inaccessible spaces by carefully inching forward with both hands on a joystick. Hands-free indoor navigation could be a game changer.
You can even tap a location on the live-view map shown on the display and the EV1 will just start taking you there, completely hands-free. Or you can summon it from another room, for example if you’re sleeping in bed and need the chair to come pick you up in the bedroom. This is autonomous driving on another level.
There’s also a mode called Co-Pilot, which lets the user take control to navigate themselves, but will constantly monitor for obstacles and make corrections if the user is about to hit something. For example, you can drive right through a narrow doorway without worrying about precision steering, since it won’t let you graze the edges of the door frame (and if you’ve ever seen the doorframes in the home of a wheelchair user, you’ll know what a game changer that would be).
Strutt demonstrated this mode by having a user blindfolded while driving through a curved hallway. He was simply pressing forward on the controls, but the EV1 smoothly followed a curved path on its own instead of letting him run into the wall when it began to curve. I tried it myself, and it’s uncanny how natural it feels.
But the EV1 isn’t limited to indoor environments. Strutt built in several clever innovations that make it surprisingly capable off pavement. There’s real suspension. The front wheels are actually dual wheels, helping them roll over gaps and rails such as those found in city trolley systems. Those same front wheels aren’t passive casters; they each have their own motors, giving the EV1 proper power steering instead of relying on tank-turning from the rear wheels. It drives like something purpose-built rather than hacked together. And that allows it to handle terrain and inclines not possible from other devices, such as off-camber turns that would send others sliding sideways down an incline.
During the demo, I asked if I could take the EV1 outside the fancy exhibition hall to see how it handled the real world. As I approached the door, trying to figure out how to open it while driving through at the same time, one of the Strutt staff told me, “Just ram it.”
I hesitated, worried I’d scratch up their expensive prototype, but he assured me it would be fine. Turns out, it was very fine. Then I remembered the clip in the presentation they shared of the EV1 towing a Tesla with a tow strap, so I guess the power was never really going to be an issue.
Speed-wise, Strutt had the units limited to 12 km/h (7.5 mph), but even at that speed they feel legitimately fast. Fast enough, in fact, that I switched into manual mode to really get a feel for it.
With a bunch of YouTubers flying around in fancy electric mobility devices, you can imagine that a drag race pretty quickly materialized. I won’t tell you who won, you’ll have to watch the video above to see. But let’s just say that my putting it in manual override mode to remove all the safety features temporarily might have been a dirty trick that gave me an advantage.
All the while, though, I found myself ping-ponging emotionally. On one hand, I’m having a blast riding a futuristic robot-chair hybrid. On the other hand, I’m constantly reminded that for many people, devices like this aren’t toys – they’re essential tools that allow them to navigate a world that wasn’t built for them. Many of the very people who helped Strutt beta test the device during development were there at the presentation, EV1), it was also a stark reminder that while I’m goofing off racing these things, this is technology meant to help people that need it in order to navigate a world not designed for them.
But maybe those two feelings don’t have to be in conflict. Why shouldn’t a device that empowers people also be enjoyable to use? Why can’t a life-changing device like this bring more than just mobility? Why can’t it actually be… fun? I’ve never looked at a mobility chair and thought it looked like a blast to use. This one genuinely is!
But the last bit here that will be critical, and something we just don’t yet know yet, is what it will cost. Considering traditional powered wheelchairs already run a few thousand dollars for relatively clunky designs, this level of advanced robotics likely won’t come cheap.
Strutt says pricing will be revealed early next year, and has just launched an early reservation program offering 35% off the first 200 units (more info in their Facebook group here). Hopefully the final price ends up within reach for the people who most need it. And like many early-stage technologies, costs will likely come down over time as production scales.
For now, though, the EV1 represents something new in mobility: a device that’s powerful, capable, intuitive, and – unexpectedly – pretty darn fun.
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Environment
Putin says Russia is willing to supply ‘uninterrupted’ fuel to India, as U.S. pressures New Delhi to cut back
Russian President Vladimir Putin is welcomed by Indian Prime Minister Narendra Modi upon arrival at the Palam Air Base in New Delhi, India December 4, 2025.
Grigory Sysoev | Via Reuters
Russian President Vladimir Putin has underlined Moscow’s willingness to provide “uninterrupted shipments of fuel” to India, as the U.S. pressures New Delhi to give up importing their oil.
Putin made the offer during a joint address with Indian Prime Minister Narendra Modi on Friday, part of his first visit to the country since Russia’s full-scale invasion of Ukraine in 2022, which triggered widespread sanctions.
The sanctions forced Russia to seek new customers for its exports. India has become the second biggest buyer of Russian crude oil, after China, with a report Finland-based Centre for Research on Energy and Clean Air showing India bought 38% of Russian crude exports in October.
In October, President Donald Trump sanctioned two of Russia’s largest oil companies, Rosneft and Lukoil. This followed a tariff of 25% on India for buying Russian oil in August. But India has to walk a tightrope because it has close ties to the U.S. while also relying on Russia for fuel and access to military hardware.
Putin questioned U.S. pressure on India in an interview to an Indian television channel on Thursday.
The United States still buys nuclear fuel from Russia for its own nuclear power plants, Putin said in the interview, adding: “If the U.S. has the right to buy our fuel, why shouldn’t India have the same privilege?”
While Trump has acknowledged that India has cut back its Russian oil imports, experts told CNBC that this may be a temporary trend.
Apart from crude oil, Russia’s Rosatom is also delivering reactors and reportedly fuel for India’s Kudankulam nuclear power plant in Tamil Nadu, which has a combined capacity of 6000MW.
India and Russia have an energy partnership, the Russian president said, adding that Moscow had been is reliable supplier of “oil, gas, coal and everything that is required for the development of India’s energy”.
Last month, India announced a “historic deal” with Washington, in which Indian state-owned oil companies signed a one-year deal to import around 2.2 million tonnes per annum of liquefied petroleum gas from the U.S.
Yes, Virginia, there are still great EV lease deals to be had in December. Hyundai continues to offer EV leases for under $200 a month, and the BMW i4 can be leased for the same price it was when the federal tax credit was still in effect. With 2025 models disappearing fast, this might be your last shot to snag a year-end lease deal on an EV. Check out the standouts below.
2025 Hyundai IONIQ 6 lease from $189/month
The 2025 Hyundai IONIQ 6 remains a fantastic deal: the IONIQ 6 SE Standard Range can be leased from $189 per month for 24 months with a $3,999 due at signing (12,000 miles per year). Its effective cost is just $356, and this month’s IONIQ 6 SE lease includes $13,000 in lease cash that you can’t get elsewhere. The offer is good until January 2.
Our friends at CarsDirect report that the SEL trim is actually a better deal at $239 with $3,999 at signing, with an effective cost of $406. Even though its MSRP is over $7,700 higher than the SE, it’s just $50 more a month to lease. The SE Standard Range has a range of 240 miles, whereas other styles have a range of up to 342.
As usual, offers vary according to location, and this is a regional offer based in California.
Click here to find a local dealer that may have the Hyundai IONIQ 6 in stock. –trusted affiliate link
2025 Hyundai IONIQ 5 lease from $189/month
Believe it or not, the 2025 Hyundai IONIQ 5 SE Standard Range RWD, which starts at $44,200, can still be leased through January 2 for $189 a month for 36 months (10,000 miles per year) with $3,999 due at signing. That works out to an effective monthly cost of about $300.
The IONIQ 5 SE RWD Standard Range offers an EPA-estimated 245 miles of range, and this particular offer is available in the Los Angeles and greater California metro areas (I’ve seen it at dealers in Carlsbad and Santa Monica, for example). And if you’re tempted by an upgrade, the SEL RWD trim is just $50 more per month under the same terms.
Click here to find a local dealer that may have the Hyundai IONIQ 5 in stock. –trusted affiliate link
2026 Subaru Solterra 5 lease from $299/month
In several regions, the 2026 Subaru Solterra Premium can be leased for $299 per month for 36 months, with a down payment of $2,799 due at signing, resulting in an effective monthly cost of $377. That makes it $95 per month cheaper to lease than a 2026 Toyota bZ, which is $472. (These figures are for California.)
A $500 loyalty discount is available to returning lessees. It doesn’t require a trade-in and can be transferred to household members. If you factor in the loyalty discount, the Solterra’s effective cost drops to $363. The offer ends January 2.
Subaru’s advertised lease prices are based on 10,000 miles a year, but that’s changeable. However, a larger mileage allowance will lower the EV’s residual value, making it more expensive.
Click here to find a local dealer that may have the Subaru Solterra in stock. –trusted affiliate link
2025 Ford Mustang Mach-E from $219/month
The 2025 Ford Mustang Mach-E can still be leased for $219 per month for 24 months with a $4,499 due at signing (10,500 miles per year) until January 5. In this configuration, the Mach-E has a range of up to 300 miles.
This is a regional offer for California, but the great deal isn’t limited to just that state. The example includes a total of $8,750 in lease cash; however, the catch is that if you opt for the lease cash, you have to decline the free home charger with installation or Ford’s $2,000 public charging credit.
Click here to find a local dealer that may have the Ford Mustang Mach-E in stock. –trusted affiliate link
2025 BMW i4 from $399/month
Remarkably, the 2025 BMW i4 is still leasing for the same price as it was when the federal tax credit was still in effect. In many regions, the eDrive40 can be leased for $399 for 36 months with $4,999 due at signing (10,000 miles per year). Its effective cost is just $538 per month, which is impressive when you consider that the i4’s retail price is over $60,000.
The offer, available until January 2, includes a $7,500 lease credit, and a $1,000 loyalty discount is also available for returning lessees. With the loyalty bonus, the i4’s effective monthly cost could be as low as $510.
In this configuration, the i4 has an EPA-estimated range of 318 miles. As before, BMW’s lease includes two years or 1,000 kWh of free charging with Electrify America.
Click here to find a local dealer that may have the BMW i4 in stock. –trusted affiliate link
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.
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