Tesla will allow owners a one-time transfer of FSD to another Tesla, but only third Q3
MKBHD/Twitter
In a landmark second-quarter earnings call, Tesla reported revenue of $24.9 billion and a net income of $2.7 billion, considerably surpassing Wall Street estimates. But catching many by surprise was the company allowing a one-time opportunity for customers to transfer their Full Self-Driving (FSD) package during the next three months.
This topic has dogged Tesla and Elon Musk for years, and rightfully so. The price of FSD has skyrocketed. Therefore any early adopters of the technology that got it for the bargain basement price of $5,000 would have to pay triple that fee if they wanted to update their Tesla. In May, the company posted on Twitter asking for improvement ideas. The ability to transfer FSD was high on the list.
Once again during the earnings call, a question about FSD transferability arose. Musk revealed that, in response to customer demand, Tesla would permit the one-time transfer of FSD for the duration of Q3. This opportunity would allow existing Tesla owners to upgrade to a new Tesla model without repurchasing the costly FSD package, which sells for $15,000 in the US.
Tesla Hints at Potential FSD Licensing Partnership
In the same earnings call, Musk indicated another groundbreaking initiative on the horizon. He revealed early talks of licensing Tesla's FSD technology to another major automaker, without disclosing specifics.
This prospective collaboration underscores Tesla's unique standing in the autonomous vehicle market. Musk emphasized the crucial role of Tesla's extensive road data, gathered through its Autopilot and Dojo projects, in its success. This invaluable pool of data, unmatched by any competitor, underpins Tesla's rapid progress in AI development and its leading position in the industry.
Listen to Tesla's Earnings Call
You can listen to a replay of Tesla's earnings call below.
FSD Transfers and Future Expectations
The decision to allow FSD transfers during Q3 is anticipated to drive a spike in Tesla sales. Owners have traditionally been reluctant to upgrade their Tesla vehicles, as the high cost of the FSD package — coupled with its non-transferability — made such upgrades financially unattractive. This unprecedented concession, combined with Tesla’s existing FSD monthly subscription service in the U.S., is expected to enhance Tesla's market appeal and profitability in Q3 significantly.
Tesla used the Q2 earnings call platform to share another impressive milestone: vehicles equipped with FSD beta have driven more than 300 million miles. The significance of this achievement extends beyond its impressive scale. It represents a wealth of data collected for training Tesla's autonomous systems, further improving the safety and performance of FSD.
Requirements for FSD Transfer
Tesla has now posted the requirements for the transfer of FSD to another vehicle, according to Twitter user, @Kdahlenburg
The requirements are below:
We are pleased to inform you that as a loyal Tesla owner with Full Self Driving capability, you may be eligible to participate in our current transfer program. We appreciate your continued support and dedication to sustainable transportation.
Program: Receive Full Self Driving capability on any new Tesla vehicle delivered between July 20, 2023 and September 30, 2023 when you forfeit the Full Self Driving capability on your current Tesla vehicle.
Subject to the below terms and conditions. Tesla does not guarantee delivery within the program's end date.
Terms and Conditions:
In order to be eligible for this program, you must:
1. Be the legal and registered owner of Tesla vehicle that currently has Full Self Driving capability included at the time of delivery of the new Tesla vehicle. The vehicle cannot be the subject of a pending cancellation or buyback request. For EMEA only: Those on an Operational Lease with third-party Lease and Fleet Management companies are ineligible, unless they first purchase the vehicle from the leasing company.
2. Take delivery of your new titled Tesla vehicle between July 20, 2023 and September 30, 2023.
3. Accept the forfeiture of the Full Self Driving capability on your current Tesla vehicle.
Alternatively, you can choose to trade-in your current Tesla vehicle altogether directly with Tesla when you purchase your new Tesla vehicle. Tesla will remove Full Self Driving capability from your current Tesla vehicle up to one week before your scheduled delivery day for your new Tesla. During this process, your current vehicle will automatically reboot for a few minutes after put in park.
4. The Full Self Driving capability can only be transferred once and so cannot be transferred to another vehicle or to another person even if the vehicle is privately sold. This offer cannot be combined with any other promotion, and is not redeemable for cash.
5. Tesla reserves the right to change, modify, or terminate this offer at any time without prior notice.
6. The forfeiture of Full Self Driving capability on your current vehicle is non-reversible after you take delivery of the new Tesla vehicle, or we remove Full Self Driving capability from your current vehicle, whichever occurs first. This remains non-reversible even in the event that you cancel or reverse your purchase after you have taken delivery.
7. Used vehicles and vehicles for commercial purposes are not eligible for this program.
8. Tesla may remove the Full Self Driving capability from your new vehicle if it determines in good faith that you have breached any of these terms or made any misrepresentations about Full Self Driving on your current vehicle.
9. This offer cannot be applied retroactively after the new Tesla vehicle is delivered.
Please read the terms and conditions above carefully. By signing this binding acceptance letter, you acknowledge that you understand and agree to the terms and conditions outlined above.
To accept this offer, please complete the information below, sign, and return this letter to your Tesla Sales Advisor before delivery of your new Tesla vehicle.
Vehicle Identification Number (VIN) of the Tesla vehicle with forfeited Full Self Driving capability: ...
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For Tesla owners with vehicles equipped with Hardware 3 (HW3)—once hailed as the key to unlocking autonomy, Robotaxi functionality, and unsupervised Full Self-Driving—the landscape is quickly changing. FSD updates were previously available for HW3 and HW4, but now, HW3 is often excluded from newer FSD updates due to compute and memory constraints. While HW3 vehicles still run a capable version of FSD, they are considerably less smooth than HW4 vehicles.
This has many HW3 owners curious about Tesla’s plans to upgrade these older vehicles, which were once promised to be capable of true autonomy. Let’s take a look at everything Tesla has said and what we should expect.
The HW3 Predicament
Introduced around April 2019, HW3 was a big leap over HW 2.5 and HW 2, with Tesla billing it as the computer that would eventually deliver true self-driving. For a long time, it powered the FSD Beta program. However, as FSD Supervised becomes more complex and data-intensive, particularly with neural networks moving towards an end-to-end AI approach, questions about HW3’s long-term lifespan have grown.
While HW3 vehicles are still receiving FSD updates, with the latest version, V12.6, launching in January 2025, the latest improvements in FSD v13 appear to be stretching even the more modern capabilities of AI4 hardware. This has understandably led to concerns that HW3 will not support Robotaxis and true autonomy.
Tesla’s HW3 Upgrade Promise
To address these concerns, Elon Musk has made increasingly definitive statements. After initially suggesting an upgrade would happen "if needed," he confirmed at the Q4 2025 Earnings Call that Tesla will upgrade HW3 computers for customers who purchased the FSD package.
Musk stated, “That's going to be painful and difficult, but we'll get it done. Now I'm kinda glad that not that many people bought the FSD package, haha.”
While Musk initially stated that Tesla would offer a hardware upgrade if needed, he gave more details this time, stating that the complimentary upgrade would be available for those who purchased the FSD package. Subscribers and non-subscribers will likely need to pay a fee similar to the HW 2 / HW 2.5 upgrade. Interestingly, Tesla was later sued for charging a fee to upgrade to HW3 and had to waive the cost.
When Will the HW3 Upgrade Be Available?
Despite Musk’s confirmation of an upgrade, Tesla hasn’t provided any timelines or estimates for HW3 retrofits. The prevailing logic, and one that aligns with Tesla’s approach to engineering challenges, is that the company is unlikely to initiate a mass upgrade program until FSD is significantly closer to being “solved,” meaning it has achieved true, unsupervised autonomy where a driver is not needed.
Until Tesla knows the final, stable computing power and architectural requirements needed for that level of autonomy, rolling out an interim upgrade wouldn’t make sense. It would risk needing yet another upgrade down the line. Therefore, HW3 owners are in a waiting game - will they wait it out, or will they take one of Tesla’s FSD transfer deals?
What to Expect With the HW3 Upgrade
One thing is clear. The upgrade will not be a simple swap to the current generation of HW4 hardware. AI4, as found in newer Tesla vehicles, has different physical dimensions, power and cooling requirements, and connector configurations that make it incompatible as a direct retrofit into HW3-designed vehicles. It’d require a lot of effort and cost to adapt HW4 for HW3 vehicles.
This means Tesla will have to develop another custom-designed retrofit FSD computer specifically for HW3 replacements. This computer must fit within an existing and defined physical space and operate within the power and cooling budget of older vehicles.
Speculation naturally turns to Tesla’s next-generation FSD hardware, HW5 or AI5. Elon previously indicated that AI5 would appear in new vehicles near the end of 2025, initially citing a timeframe of 12-18 months back in mid-2023. However, it now looks like it’ll ship sometime in the first half of 2026.
Potentially, a variant of this new AI5 computer, perhaps a more power-efficient or underclocked version, could be engineered to form the basis of the HW3 retrofit solution. This is plausible, as newer chip architectures often bring considerably greater efficiency, potentially allowing a more powerful new design to operate within HW3’s constraints.
What About HW4 and HW5?
The current-generation FSD computer, HW4, is already facing some constraints with the latest FSD v13 updates. This means buyers and owners of AI4 vehicles are also starting to have this question creep into the back of their heads… “What about my vehicle?”
Based on Tesla’s official statements on AI5, it is poised to be a powerhouse of an upgrade. That means up to 10 times the processing capability of AI4. This is an immense increase in processing power, and over time, Tesla will likely use every bit of it to make FSD handle as many edge cases as possible. While AI4’s computing power was a modest increase from HW3, the leap from AI4 to AI5 is expected to be significantly larger.
Tesla’s executive team has stated that the existing cameras on HW3-equipped vehicles are “capable” and that the upgrade will be focused on the FSD computer. While the AI4 cameras offer a much higher resolution than HW3, Tesla says they’re not needed. This appears to contradict what Tesla is doing as of FSD v13.2. In that update, Tesla introduced processing FSD camera feeds at full resolution, suggesting that there is some advantage to the higher-resolution cameras.
Musk also stated that cameras would not be upgraded in HW3 vehicles.
As we’ve previously covered, the newer HW4 cameras offer several advantages over the HW3 camera generation, which include:
Higher Resolution: The AI4 cameras feature 5 megapixels, compared to the 1.2 megapixels on HW3 cameras, which allows the vehicle to see things further away and in sharper detail.
Improved Dynamic Range and Low-Light Performance: The improved dynamic range allows the system to see more clearly in low-light conditions, such as during sunrise or sunset, or at night.
Wider Field of View: The rear camera on AI4 features a significantly larger field of view, providing greater awareness of the vehicle's surroundings.
It's known that AI4 processes camera data at these higher resolutions, which undoubtedly contributes to its increased performance in decision-making, object recognition (especially at a distance or for small details, such as text on signs), and overall FSD smoothness.
Therefore, while a new, more powerful retrofit computer for HW3 vehicles will bring substantial improvements, it will still be processing input from the older-generation cameras. Another technical challenge that Tesla will need to address is how to maximize FSD performance using the existing HW3 cameras.
Infotainment (MCU) Upgrade?
Most HW3-era vehicles are equipped with the older Intel Atom-based infotainment computer, known as MCU 2. Newer Teslas, as well as newer HW3 vehicles, use the considerably faster AMD Ryzen-based MCU 3. Given that Tesla sometimes packages the FSD computer and infotainment computer together, it wouldn’t be too surprising to see an MCU upgrade as part of an FSD computer retrofit.
While this would be a welcome improvement, providing a snappier user interface and better media capabilities, Tesla has not confirmed any such plans. The FSD computer and the MCU are technically separate systems, but Tesla usually bundles them together to save on costs. While Tesla has offered paid MCU upgrades in the past (e.g., from the older MCU 1 to MCU 2), there is currently no official upgrade path from MCU 2 to MCU 3.
It’s best to assume that the promised free FSD computer upgrade will not automatically include an infotainment system upgrade as well, but it’s certainly possible, given that Tesla usually bundles these together.
Playing the Waiting Game
For Tesla owners who purchased FSD with their HW3 vehicles, the commitment for a free hardware upgrade is on the record. However, the "when" and "what" remain tied to the challenge of achieving true, unsupervised autonomy. Once Tesla understands the compute power required to solve FSD, we’ll likely hear more about this hardware upgrade. Until then, we’ll have to hold on tight with FSD v12.6.
In just 8 months, Tesla has gone from breaking ground to delivering electrons at its most ambitious Supercharger project to date, just in time to be ready for the busy Fourth of July holiday weekend. Project Oasis, the world’s largest Supercharger site, is now partially open to customers for its first phase in Lost Hills, California.
What makes this remarkable is the speed of execution. In just eight months, Tesla has constructed a site that will eventually feature 168 stalls (84 stalls are now open), supported by 11 MW of solar power and 10 Megapacks of battery storage. That construction speed is pretty impressive, but what is even more impressive is how this new station operates and what it means for future Supercharging infrastructure.
Self-Sufficient Energy Oasis
Not a Tesla App
The first 84 stalls at Lost Hills are now open, and according to the Tesla Charging team, they are currently powered solely by the sun and operate off-grid.
This makes it more than just a new Supercharger site. It serves as a proof of concept for a new type of Supercharger. Unlike nearly every other charging site in the world, which draws power from local utilities, this station generates its own clean electricity from its massive solar array and stores it in its array of on-site Megapacks.
Self-sufficient charging stations are something completely different than what we see today. They are highly resilient since they’re not reliant on the grid. That means that even if there is a local power outage, brownout, or blackout, one can always come to Lost Hills to Supercharge.
If you’ve got a Cybertruck, you could take advantage of the Cybertruck’s Powershare feature and charge up at Lost Hills to help keep your home powered during a blackout, utilizing the Cybertruck as a portable battery charger. Now that’s true independence and self-reliance.
The Future of Charging
Solar-powered Superchargers help avoid massive new loads on already stressed electrical grids, especially during peak afternoon and evening hours, when demand is the highest.
This is Tesla’s vision for the future of charging: a clean, fully closed-loop ecosystem that sustains itself. The sun’s energy is captured, stored, and delivered directly to vehicles on site at any time of day without relying on the electrical grid or fossil fuels.
Largest Supercharger in the World
This opening of 84 stalls is just the first phase of the project. Tesla says that the remaining stalls, as well as a new on-site lounge, are coming later this year. Once complete, the 168-stall site will be the largest Supercharger site in the world.
While the speed of building such a massive project in just eight months is a testament to Tesla’s execution, the true innovation is actually that self-sustainability. Let’s hope we see even more large, self-sufficient Supercharger sites across the world in the near future.
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