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Tesla (TSLA) has to replace the ‘self-driving’ computer inside about 4 million vehicles or likely compensate the owners of those vehicles.

The liability could be more significant than the largest automotive recall in terms of cost.

In 2016, Tesla claimed that all its vehicles in production going forward have “all the hardware necessary for full self-driving capability.”

Tesla’s use of the term “full self-driving” has changed over the years, but at the time and for years later, CEO Elon Musk claimed that it would mean Tesla owners would eventually receive a software update that would turn their vehicles into “robotaxis” capable of level-4-5 self-driving, which means unsupervised autonomous driving even with no one in the cars.

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Almost 10 years later, this has yet to happen and won’t happen soon in most of the cars Tesla has delivered over the last decade.

Tesla’s claim that its vehicles have “all the hardware necessary for full self-driving capability” quickly proved untrue.

At the time, Tesla was producing its vehicles with cameras, a front-facing radar, ultrasonic sensors, and a “self-driving” computer, called HW2.5.”

Tesla quickly started building new vehicles with a new “HW3 self-driving computer” and admitted that its HW2.5 computer was not powerful enough to achieve self-driving capability.

The automaker started retrofitting existing HW2.5 vehicles for free with new HW3 computers owned by drivers who bought Tesla’s ‘Full Self-Driving’ (FSD) software package.

In 2023-2024, Tesla transitioned to another new and more powerful “self-driving computer”, HW4, in its new vehicles.

Unlike when it transitioned from HW2.5 to HW3, this time, Tesla claimed it would still be able to deliver its robotaxi self-driving capability to HW3 vehicles.

Tesla Full Self-driving computer

Musk even claimed that FSD will get better on HW3 first, as Tesla’s “focus needs to be on getting FSD on HW3 working super well and provided internationally”. He went as far as claiming that FSD performance on “HW4 will lag at least 6 months behind HW3” because of this.

That didn’t last long.

In 2024, we started to report that Tesla was reaching the limits of the HW3 computer, while the capabilities were nowhere near the promised unsupervised robotaxi-level autonomous driving.

It took another 6 months, but in January 2025, Musk finally admitted that HW3 computers are not powerful enough to achieve unsupervised self-driving capability.

There are about 4 million Tesla vehicles in the world with HW3 computers:

Hardware Version Production Timeframe Estimated Vehicles Produced (Global) Rollout & Overlap
HW3 (FSD Computer) Apr 2019 – Late 2023 (phased out) ~4 million (approx.)​ Standard in all models from 2019–2022; remained in some cars through 2023. Overlap with HW4 during 2023.
HW4 (FSD Computer) Jan 2023 – Present (ongoing) ~2.5–3 million (approx.) Introduced Jan 2023 (S/X first)​; became standard across all models by early 2024​. Overlapped with HW3 in 2023.

When admitting the computer won’t support the promised self-driving capabilities, Musk said that Tesla would retrofit the computers of all HW3 car owners who purchased the FSD package:

I mean, I think the honest answer is that we’re going to have to upgrade people’s Hardware 3 computer for those that have bought full self-driving, and that is the honest answer and that’s going to be painful and difficult but we’ll get it done. Now I’m kind of glad that not that many people bought the FSD package.

Musk says that replacing all the computers will be “painful,” and he is “glad” that “not that many people bought the FSD package.”

Tesla never disclosed the official take rate of its Full Self-Driving (FSD) package, but it did disclose having 400,000 FSD beta testers in North America by the end of 2022.

The take-rate is believed to be much lower globally due to the limited value in other markets where Tesla offers fewer ADAS features under the FSD package.

Globally, it’s safe to assume at least another 100,000 HW3 vehicles with the FSD package, which should bring Tesla’s retrofit requirement to over half a million units.

Musk is right to say that replacing the computers in over 500,000 Tesla vehicles will be “painful.” It will strain its service capacity tremendously, on top of the cost, which will easily surpass $500 million.

But that might just be the beginning.

Tesla promised self-driving hardware in all cars

Musk and Tesla not only made promises to those who bought the FSD package, but they promised anyone buying Tesla vehicles since 2016 had “all the hardware necessary for full self-driving capability.”

As we previously reported, Tesla removed the claim from its website last year and changed the language around the FSD package, which was likely aimed at weakening claims for Tesla HW4 owners, but the case for HW3 owners is more straightforward.

In 2019, Musk claimed “Tesla vehicles are now appreciating assets” because of their future self-driving capabilities. Of course, this proved to be completely wrong.

But there’s one thing that’s true about the value of Tesla vehicles: they would be worth more if they had computers capable of supporting self-driving, which Musk just admitted is not the case. That’s regardless of whether they bought the FSD package or not.

Therefore, there’s a strong argument to be made that Tesla needs to replace computers in all HW3 cars or at the very least, compensate the owners for falsely claiming that the vehicles had “all the hardware necessary for self-driving.”

In fact, there’s already legal precedent for this.

In 2022, a judge ordered Tesla to upgrade a customer’s self-driving computer for free so that they can subscribe to Tesla’s Full Self-Driving program without any additional cost. It created a precedent for Tesla owners who don’t purchase the FSD package.

Based on Tesla’s statement that “all cars produced since 2016 have the hardware necessary for full self-driving capability,” the owners of those vehicles need to have all the hardware necessary to have access to these features.

It’s a clear case of false advertising. Tesla says, “Your car has all the hardware necessary for full self-driving,” and when an owner wants to try the features, Tesla tells them, “You have to pay $1,000 for us to upgrade your hardware.” Something doesn’t add up.

Electrek’s Take

I would be surprised if Tesla does as Musk claimed and replaces HW3 computers in any car, let alone over half a million cars, or as it should be, about 4 million vehicles.

It’s too complicated and costly. It would add hundreds of thousands of work hours to Tesla’s already ultra-busy service operations, and it may not even work.

After being wrong about HW2.5 and HW3, the level of confidence in Tesla achieving unsupervised self-driving on HW4 vehicles is not really high, despite HW4 vehicles not only having more powerful computers but also better cameras.

I don’t think it’s realistic to believe that Tesla will enable level 4 or 5 self-driving capabilities in what are, in some cases, almost 10-year-old vehicles through a computer retrofit.

My 2018 Model 3 Performance was originally a HW 2.5 vehicle, and I purchased the FSD package. Tesla upgraded my computer to HW3 in 2019. We are now in 2025, and Musk finally admitted that the computer I bought 6 years ago won’t enable the self-driving capacity I was promised.

My car will never be self-driving, and I don’t believe Tesla will ever offer a free computer upgrade.

I think Tesla will have to compensate every Tesla HW3 owner worldwide. That would mean about 4 million vehicles and a liability of several billion dollars.

At first, instead of the computer retrofit, I think Tesla will use this as an opportunity to encourage people to upgrade, like it did with the “FSD transfer windows.” Maybe it will offer buybacks at a higher rate to compensate owners.

As for those who didn’t buy the FSD package, I don’t think Tesla will offer anything based on Musk’s messaging. It will have to go through the courts.

There are already several lawsuits filed against Tesla over its self-driving claims, and that was before Musk’s admission that HW3 won’t support unsupervised self-driving. I believe that those lawsuits will ramp up this year.

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If you think electric bikes are bad, there’s a much bigger menace hitting our roads

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If you think electric bikes are bad, there’s a much bigger menace hitting our roads

Electric bikes are a menace. They go almost as fast as a car (if the car is parking), they’re whisper quiet (which makes them impossible to hear over the podcast playing in your headphones), and worst of all, they’re increasingly ridden by teenagers.

By now, we’ve all seen the headlines. Cities are cracking down. Lawmakers are holding emergency hearings. Parents are demanding bans. “Something must be done,” they cry at local city council meetings before driving back home in 5,000 lb SUVs.

And it’s true – some e-bike riders don’t follow the rules. Some ride too fast. Some are inexperienced. These are real problems that deserve real solutions. But if you think electric bikes are the biggest threat on our roads, just wait until you hear about the slightly more common, slightly more deadly vehicle we’ve been quietly tolerating for the last hundred years.

They’re called cars. And unlike e-bikes, they actually kill people. A lot of people. Over 40,000 people die in car crashes in the US every year. Thousands more are permanently injured. Entire neighborhoods are carved up by high-speed traffic. Kids can’t walk to school safely. But don’t worry – someone saw a teenager run a stop sign on an e-bike, so the real crisis must be those darn batteries on two wheels.

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It’s amazing how worked up people get over a few dozen e-bike crashes when many of us step over a sidewalk memorial for a car crash victim on the way to the grocery store. We’ve been so thoroughly conditioned to accept car violence as part of modern life that the idea of regulating them sounds unthinkable. But regulating e-bikes? Now that’s urgent.

To be clear, this isn’t about ignoring the risks that come with new technology. E-bikes are faster than regular bikes. They’re heavier, too. And they require education and enforcement like any other mode of transport capable of injuring someone, be it the rider or a pedestrian bystander. But the scale of the problem is what matters – and the scale here is completely lopsided. Let’s take New York City, for example. It’s got more e-bike usage than anywhere else in the US, and there are still only an average of two pedestrians per year killed by an e-bike accident. That number for cars? Around 100 per year in NYC. It’s not complicated math – cars are 50x more lethal in the city.

And yet, the person on the e-bike is the one getting the stink eye.

We’ve become so numb to the everyday destruction caused by automobiles that it barely registers anymore. Drunk driving? Distracted driving? Speeding through neighborhoods? It’s just background noise. But the moment someone on an e-bike blows through a stop sign at 16 mph, it’s front-page news and a city council emergency.

Here’s an idea: If we want safer streets, how about we start by addressing the machines that weigh two and a half tons and can hit 100 mph, not the ones that top out at 20 or 28 and are powered by a one-horsepower motor the size of an orange.

But we don’t. Because cars are familiar. Cars are “normal.” Cars are how we built our entire country. And so we turn our attention to the easy target – the new kid on the block. The same old playbook: panic, overreact, and legislate the hell out of it.

Sure, an e-bike might startle you on a sidewalk. But a car can climb that sidewalk and end your life. Which one do we really need to be afraid of?

This isn’t a strawman argument, either. Cars are literally used as mass casualty weapons. It happens all the time. It happened last night in Los Angeles when a disgruntled car driver deliberately plowed into a crowd outside a nightclub, injuring over 30 people. And that wasn’t the only car attack yesterday. Another car rammed into pedestrians on a sidewalk in NYC yesterday morning, leaving multiple pedestrians dead. These aren’t exceptions. This is the normal daily news in the US. It’s depressing, but it bears repeating. This is normal. These are everyday occurrences. Twice a day, yesterday.

While we’re busy debating throttle limits and helmet rules for e-bikes, maybe we should also talk about how tens of millions of drivers still routinely speed, blow stop signs, or scroll Instagram at 45 mph in a school zone. Or how car crashes are the number one killer of teenagers in America. Or we can continue to focus on the kid who forgot to put his foot down at a red light while riding an e-bike to school.

This isn’t satire anymore – it’s just sad. It’s a collective willingness to avoid a real, genuine threat to Americans while simultaneously scapegoating what is, by comparison, a non-threat.

The truth is, electric bikes aren’t the menace. They’re a solution. They’re one of the few glimmers of hope in a transportation system drowning in pollution, congestion, and daily tragedy. They make mobility cheaper, cleaner, and more accessible. And yet we treat them like an invasive species because they disrupt the dominance of the automobile.

It’s time to stop pretending we’re protecting the public from some great e-bike emergency. The real emergency is that we’ve accepted cars killing people as a fair trade for getting to Target five minutes faster.

So yes, let’s make e-biking safer. Let’s educate riders, build better bike infrastructure, and enforce traffic rules fairly. Those are all important things. We absolutely SHOULD invest in training programs to educate teens on safe riding. We absolutely SHOULD cite and fine dangerous riders who could threaten the lives of pedestrians. But let’s stop pretending that e-bikes are the problem when they’re clearly a symptom of a much bigger one.

If you’re really worried about the dangers on our streets, don’t look for the kid on the e-bike. Look for the driver behind them, sipping a latte and going 20 over the speed limit.

Now that’s the menace.

Image note: The first and last images in this article were both AI-generated, and represent everyday car/bike interactions

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The Dodge Neon deserves a comeback – and Stellantis could do it tomorrow

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The Dodge Neon deserves a comeback – and Stellantis could do it tomorrow

The first all-new compact Mopar since the malaise-era K-Car, the Dodge Neon was a revelation. Its fun, approachable face, its “Hi.” marketing campaign, all of it was pitch-perfect for the uncertain times it was launched into. Now, a generation later, Stellantis faces similarly uncertain times – and a new Neon could go a long way towards helping the old Chrysler Co. do what it does best: come back from the brink.

If they wanted to, Stellantis could make it happen tomorrow.

Today, Stellantis is in trouble. Much like it was in the early 90s, the company is hemorrhaging cash, fighting with the unions, and struggling to sell higher-end cars. Today as then, what the company needs is an affordable, simple new car to get people in the showrooms – and in 1994, that new car was the Neon.

In the mid-late 1990s, the Dodge Neon was everywhere. It was affordable, fun to drive, and more or less reliable. It was also economical and fuel-efficient, but it wasn’t that way. It was sold as a fun, smiling face with funky round lights. In R/T and ACR spec, it was sold as an even more fun, smiling face, and offered serious performance chops that still get the grizzled Gen X guys at the SCCA/NASA track days excited.

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Stellantis is selling a car right now, today, that meets all that criteria. It’s the right size, it’s reasonably affordable, and it’s got the right tech – available as both a PHEV and a pure EV – for its time.

It’s even got some funky round lights!

Lancia Ypsilon HF


Spec SOHC Neon DOHC Neon Hybrid Y EV Y HF Y
Wheelbase (mm) 2642 2642 2675 2675 2675
Overall Length (mm) 4366 4366 4080 4080 4080
Engine Size (L) 2.0 2.0 1.2 NA NA
HP 132–136 150 100 156 280
TQ (lb-ft) 129–133 133 129 192 255
0–60 mph (s) 7.6–8.5 7.6 9.3 8.2 5.6
MPG (comb.)/EV range 28 28 ~50 425 km 370 km

As you can see from the specs, above, the first-gen Neon is pretty close in terms of size and performance, with the modern Ypsilon offering significantly improved emissions, technology, and safety upgrades compared to the OG Neon, which didn’t even offer anti-lock brakes (ABS) as standard on its base or Highline models (it was standard on the Sport and, later, R/T trims).

There’s even a modern allegory for the ultra track-focused ACR version of the Neon, which shipped with its adjustable suspension, anti-sway bars, disc brakes, and close-ratio transmission. That’s the Lancia Ypsilon HF, a 280 HP sporty compact EV that made its debut last week and originally inspired this article.

Check out the original launch ad for the 1995 Plymouth Neon, below, and tell me they couldn’t do a shot-for-shot remake with a rebadged Ypsilon and make it immediately relevant to car buyers in 1995 in the comments.

Plymouth Neon launch commercial from 1994


Original content from Electrek.


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Does Faraday’s FX Super One show us how Chinese EVs will get into the US?

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Does Faraday's FX Super One show us how Chinese EVs will get into the US?

Faraday Future unveiled its upcoming FX Super One MPV on Thursday, which appears to be a rebadged Great Wall Motors Way Gaoshan.

Which brings us to the question: is this how we might see more Chinese EVs make their way to the US?

The EV market in China has grown rapidly in recent years, not just in terms of total sales and revenues for its largest companies, but also in terms of the hundreds of EV companies vying to survive the current highly competitive market there.

But despite massively rising EV sales in the country, EV production is still scaling even faster. This has led to a price war within China due to this glut of cars, and also to Chinese companies seeking more buyers overseas.

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These affordable EVs have been shipped around the globe, leading to rapidly rising EV sales in Europe and in the “rest of the world” – though, as of yet, not really in the US. Due to excessive tariffs, the US has made itself into an island where few Chinese EVs are allowed.

The ones that have made their way into the US are those built by Western brands that were bought up by a Chinese conglomerate, like Volvo and Polestar under parent company Geely. Some of their models are assembled in Chinese factories, but most of the ones making their way to the US are built in European or US factories (largely due to the domestic sourcing efforts in Biden’s Inflation Reduction Act, creating millions of US jobs which republicans are currently doing their best to send back to China).

BYD has also put out feelers about building a factory in Mexico, but those plans are on pause, ironically because BYD doesn’t want its technology to be stolen by the US (put that one on for some perspective about how far we have fallen behind on EVs, fellow Americans).

But we haven’t yet seen the kind of Chinese EV that the rest of the world is getting – one of those many eye-openingly cheap numbers that could finally bring true affordability to the US market (or bring it back, that is).

That’s due to tariffs, and it’s intentional. There are various arguments given for tariffs’ existence, but they boil down to: the US can’t make cars as cheap as China, and wants to protect its auto industry, and therefore making Chinese EVs more expensive will forestall their entry into the US while we try to get better at making them. I personally find these explanations wanting and consider these tariffs unwise (and they have only gotten more unwise).

But in a world where these tariffs exist, and depending highly on what final form they take, companies will look for ways to minimize their exposure to them and to still bring cars into the US. Much of the EV industry is sourced through China (again, one of the issues the Inflation Reduction Act tried to remedy), so parts will have tariffs on them, in various amounts.

This is where I speculate that the Faraday Future FX Super One could come in. At last night’s unveiling event, it became quite clear that the car is strikingly similar to the Great Wall Motors Wey Gaoshan.

This similarity is not coincidental – Faraday told us that it is working with “a Tier 1 Chinese automotive supplier,” one that we have heard of, to build the FX Super One. That supplier will send stamped bodies to Faraday’s US factory in Hanford, CA, where Faraday will take care of the final assembly.

Faraday didn’t let us take pictures of the interior, even from the outside, but what we saw of the interior on a short ride around the parking lot looked quite similar to the interior of a Wey Gaoshan, just with different controls (for example, the the pull-out fridge in the bottom of this photo is identical to the one I saw in the FX Super One).

Faraday said the interior hasn’t been finalized yet, but also said that it thinks it can have 100-150 cars built by the end of the year. Which is less than half a year away, for a company that has to date built 16 cars (though those it built on its own). So there’s not a lot of time for further changes at this rate.

So, here we have a company that intends to sell a car in the US, much of which originated in China. This seems like it would run afoul of tariffs.

But, depending on how (or if…) these tariffs get edited or finalized, they might be much lower for parts and/or for vehicles that undergo final assembly in the US. So Faraday might be able to get away with importing something very similar to a GWM, doing enough to it here to qualify its way past tariffs, and getting it on the market at a price that doesn’t incorporate the however-many-hundred-percent the US has ridiculously decided to tack on this week.

Faraday also mentioned during its presentations about the FX Super One that it has a US-based software team, which has been at work for some time.

The software in Faraday’s previous vehicle, the FF91, is pretty good, despite being such a low volume vehicle. And it’s gotten much better between the first time I sat in it and when I had a short demo this month of Faraday’s newly-upgraded voice recognition system (now supporting 50+ languages) and swipe gestures for setting volume and HVAC.

We didn’t get to interact with the software on the FX Super One at all, but we would be cautiously optimistic about it based on prior showings.

But more importantly for the purposes of this article, Faraday’s software team is based in the US. And given current US threats to ban any and all Chinese software from vehicles, this too would allow Faraday to swap out some chips and memory cards and make a car perfectly legal from a US perspective.

So it’s possible that Faraday is on to something here, and has found a reasonable way to get Chinese EVs into America, while complying with US law, and while giving the company a much easier way to increase its scale than trying to get numbers up for the slow-growing FF91 project. Faraday does not have the resources to build out mass market manufacturing currently, so this is another option.

Now… this is no $11k Dolphin Seagull, the Wey Gaoshan starts in the mid-$40k range in China, and is considered a luxury model. And here in the US, Faraday is positioning the car as a premium model as well, though hasn’t yet announced pricing or really gotten its messaging straight on whether it’s a mass market vehicle or a VIP/Cadillac Escalade competitor.

But if this is Faraday’s plan, and if the plan works, it could give the US a taste of the EVs that the rest of the world is getting access to, and could show a potential way of getting those cars across the border. There are both pros (competition good, cheaper prices good) and cons (race to the bottom for manufacturing, loss of important American industry) for the US auto market here, so you’ll have to decide which side of that equation you land on, but this could be a harbinger of one way cars from the now-biggest auto exporting country in the world could make their way out into markets that have exhibited hostility to that idea.


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