Musk Admits Tesla Needs Hardware Upgrades

Elon Musk revealed that millions of Tesla owners will require hardware upgrades for a future, more advanced Full Self-Driving (FSD) software version. This admission has significant financial and legal implications for the company. Tesla sold vehicles with the necessary Hardware 3 between 2019 and 2023, and now Musk suggests physical upgrades are needed, potentially requiring microfactories in major cities. This could add substantially to Tesla's expanded $25 billion capital expenditures budget. The news comes as Redwood Materials, founded by former Tesla CTO JB Straubel, announced layoffs and restructuring, impacting about 10% of its workforce to focus on its energy storage business.