Elon Musk Confirms Tesla Cars With HW3 Chip Won’t Achieve Unsupervised FSD, Touts ‘Distilled’ V14 Instead—Ross Gerber Says Owners ‘Screwed’

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Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk on Wednesday confirmed that vehicles equipped with Tesla’s Hardware 3 (HW3) chip would not achieve Unsupervised Full Self-Driving (FSD).

HW3 Won’t Achieve Unsupervised Autonomy

During the company’s first quarter 2026 earnings call, Musk confirmed the news, while sharing that Tesla would offer “discounted trade-in for cars that have AI4.”

He also shared that Tesla would offer customers the choice to upgrade the chip and cameras on HW3 vehicles. “We’re going to have to set up micro factories in major metro areas,” he said, adding that it would make sense to “convert all HW3 cars to HW4.” Tesla also confirmed during the earnings call that it will offer a “distilled” version of the FSD v14 to HW3 owners.

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