Elon Musk’s Tesla forced

Tesla may face a multi-billion dollar cost after a judge ruled the company could be required to replace the self-driving computers in around 4 million vehicles. This issue stems from Tesla’s 2016 claim that all vehicles produced from then on had the necessary hardware for full self-driving. Elon Musk had promised that a future software update would turn these cars into autonomous ‘robotaxis’ capable of driving without human input. However, nearly a decade later, that capability has not materialized, and Tesla’s Full Self-Driving (FSD) still requires driver supervision.

In 2022, a judge ordered Tesla to upgrade a customer’s self-driving computer for free to allow access to the FSD program. This set a precedent that could benefit millions of owners whose cars use the older HW3 computer, which Musk admitted in 2024 isn’t powerful enough for full autonomy. Replacing the hardware could cost Tesla over $10 billion, especially as models like the Model 3 and Model X are affected. Alternatively, compensating owners poses challenges, such as calculating fair payments for those who paid for FSD years ago. Failure to address the issue could lead to further lawsuits and damage to Tesla’s reputation.