Tesla Promises Upgrade for Customers Who Bought Cars That Can't Drive Autonomously

Tesla told investors that its older “Hardware 3” vehicles (built 2016–2024) lack the capability to achieve fully unsupervised Full Self-Driving, reversing earlier customer expectations. CEO Elon Musk said the hardware won’t support unsupervised FSD; the company will offer hardware upgrades or trade‑in discounts to affected owners. The admission raises legal and reputational risk (class‑action litigation noted) and could pressure Tesla’s stock and investor confidence, as reflected in a reported ~3.2% intraday drop. Markets may reassess the value of Tesla’s FSD roadmap and potential costs of retrofitting or incentives, with implications for near‑term cash outlays and longer‑term product credibility.