Tesla Faces Analyst Backlash and 3% Share Drop Over Costly HW3 FSD Upgrade Plan

Tesla requires owners of 3.5 million HW3-equipped vehicles to trade in cars at a discount or upgrade in yet-to-be-built microfactories for full self-driving access, drawing sharp criticism from analysts labeling it expensive and from early buyers mulling legal action. Elon Musk announced the plan on April 23, 2026, amid decade-old promises, with 285,000 such cars having purchased FSD. Shares fell roughly 3% intra-day on the backlash and concerns over costs, margins, and reputational risks, as Tesla eyes Version 14 software by June end.