During its Q3 2025 earnings call, Tesla addressed concerns from Hardware 3 vehicle owners by promising continued support for their Full Self-Driving software. The company plans to release a lighter version of the software next year and is expanding trade-in options. This comes amid frustrations from early adopters waiting for updates compatible with their older hardware.
Tesla's Hardware 3 (HW3) vehicles, equipped with an older chip, have not kept pace with the latest Full Self-Driving (FSD) suite versions, which are optimized for the newer Hardware 4 (HW4), also known as AI4, found in models like the current Model Y. Tesla is also developing AI5 chips with suppliers TSMC and Samsung. Many HW3 owners, early adopters of the technology, have expressed frustration over delays in software access, despite repeated assurances from the company.
On October 23, 2025, during the Q3 2025 earnings call, Tesla's Chief Financial Officer Vaibhav Taneja, whose own daily commuter is a HW3 vehicle, emphasized the company's commitment. He stated: “We have not completely given up on HW3. These customers are very important. They are early adopters. We will definitely take care of you guys.”
Tesla's Head of AI and Autopilot, Ashok Elluswamy, provided a specific timeline, announcing plans for a v14 Lite version of the Full Self-Driving (Supervised) suite tailored for HW3 in Q2 2026. This lighter version aims to deliver improvements without requiring hardware upgrades, though it may not include all features available on HW4 due to processing limitations.
To ease the transition, Tesla is enhancing trade-in opportunities, allowing HW3 owners to upgrade to HW4-equipped vehicles and access the full FSD software. While this reassures owners of ongoing support, some may still face a wait for substantial progress unless they opt for a trade-in, highlighting the balance between innovation and loyalty to existing customers.