What Ended

Tesla Hardware 3, the computational platform used in vehicles manufactured from 2019 to early 2023, is being phased out. Hardware 3 was intended to support Full Self-Driving (FSD) capabilities. Elon Musk confirmed that Hardware 3 lacks the capacity for unsupervised FSD due to insufficient memory bandwidth. Approximately 4 million Tesla vehicles are equipped with Hardware 3. Tesla's plan to upgrade these vehicles is not fully defined. Hardware 4 has been introduced as the successor.

Why It Mattered

Tesla Hardware 3 was a critical component in the company’s push towards autonomous driving technology. It was designed to facilitate FSD features but fell short of achieving the necessary operational capabilities. The limitations of Hardware 3 directly impacted the functionality of FSD in Tesla vehicles, leading to customer dissatisfaction and operational inefficiencies. The inability to achieve unsupervised driving undermined Tesla’s claims regarding the advancement of autonomous vehicle technology. Hardware 3's deficiency in memory bandwidth—measured at one-eighth that of Hardware 4—significantly restricted its processing power and effectiveness.

What Replaced It / What Gap Remains

Hardware 4 has been introduced as the new standard for Tesla vehicles, designed to support advanced FSD capabilities. This transition raises questions about the future functionality of vehicles equipped with Hardware 3. While Tesla has announced plans to upgrade these vehicles, the specifics of the upgrade process remain unclear. The company has not yet established microfactories or additional infrastructure necessary for efficient hardware replacement. The gap remains in the operational readiness of older models to meet evolving autonomous driving standards.