Tesla Inc. (NASDAQ:TSLA) CEO Elon Musk on Wednesday confirmed that vehicles equipped with Tesla’s Hardware 3 (HW3) chip would not achieve Unsupervised Full Self-Driving (FSD).
HW3 Won’t Achieve Unsupervised Autonomy
During the company’s first quarter 2026 earnings call, Musk confirmed the news, while sharing that Tesla would offer “discounted trade-in for cars that have AI4.”
He also shared that Tesla would offer customers the choice to upgrade the chip and cameras on HW3 vehicles. “We’re going to have to set up micro factories in major metro areas,” he said, adding that it would make sense to “convert all HW3 cars to HW4.” Tesla also confirmed during the earnings call that it will offer a “distilled” version of the FSD v14 to HW3 owners.
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Ross Gerber Criticizes Move
Following the announcement, investor Ross Gerber of Gerber Kawasaki took to the social media platform X, expressing his disappointment. “Not a good conference call for current tesla owners,” he said, adding that all HW3 “screwed” by Tesla. “They sold about 3 mil of these teslas and about 285k have FSD,” he said, adding that the liability could be in “billions.”
Not a good conference call for current tesla owners. Basically HW3 customers are screwed. They sold about 3 mil of these teslas and about 285k have FSD. So the liability is in the billions. $TSLA
— Ross Gerber (@GerberKawasaki) April 22, 2026
It’s worth noting that Gerber had earlier sounded out calls for Tesla to reimburse customers for the lack of self-driving features despite customers paying for them. He had demanded a $10,000 refund if the latest v14.3 FSD system failed to offer unsupervised autonomy.
Tesla’s Earnings Call
Tesla reported its earnings after the market close on Wednesday, recording first-quarter 2026 revenue of $22.71 billion, up 16% YoY and beating analyst consensus of $22.39 billion. Tesla also reported earnings per share of 41 cents, beating market estimates of 37 cents per share.
According to Benzinga Edge Rankings, Tesla offers satisfactory Momentum, but poor Value. It provides a favorable price trend in the Long term.
Price Action: TSLA declined 0.31% to $386.30 in the after-hours trading session on Wednesday.
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