Elon Musk admits that millions of Tesla cars will not undergo unsupervised FSD

For customers who have purchased an FSD, what we offer is essentially a discounted trade-in for cars with AI4 hardware. We will also provide the possibility of upgrading the vehicle to replace the computer. And you also need to replace cameras, unfortunately, to move to hardware 4. To do that efficiently, we’re going to have to set up micro-factories, or micro-factories, in major urban areas in order to do that efficiently. If this is done at a service center, it will be very slow and inefficient. We mainly need small production lines to bring about change.

I think that over time it will make sense for us to convert all Hardware 3 cars to Hardware 4, because that is what enables them to enter the robotaxi fleet and have unsupervised FSD.