Tesla breaks FSD promise: Customers demand refunds

For Tesla models with Hardware 3 sold from 2019 onward, customers could purchase an FSD package for $6,800 or $10,000. Tesla had promised that these vehicles were equipped with the necessary hardware for autonomous driving and could simply be updated once the software was ready. The US automaker now has to backtrack on that promise.

Older vehicles with Hardware 3 apparently cannot become fully autonomous through software updates alone. Elon Musk acknowledged this during a conference call on the company’s quarterly results. The reason: the older hardware simply does not offer enough performance. Memory bandwidth in particular is said to be a problem. In this area, HW3 reportedly reaches only around one eighth of Hardware 4’s performance.

Tesla offers two solutions

Tesla is outlining two potential solutions for affected owners: a discounted switch to a newer vehicle with Hardware 4 or a possible retrofit. Whether that retrofit would be free remains unclear. What is clear, however, is that the conversion would be complex. According to Musk, not only the computer but also the cameras would have to be replaced. He even mentioned special “microfactories” for such retrofits. So far, however, there is no concrete timetable.

Community demands free retrofit or refund

On Reddit, the mood is extremely tense. Many Tesla owners feel strung along, while some even feel deceived. The idea of a discounted trade-in is particularly unpopular – after all, many owners want to keep their cars and not spend more money because of an old promise. The most common demands: a free retrofit or a refund.

For Tesla, the issue could also become legally tricky. In the US, one Tesla driver has already been awarded a full refund of the FSD fee in court. In Europe, Dutch Tesla owner Mischa Sigtermans is currently rallying disgruntled Tesla drivers to take action against the company.