At this year’s Tesla shareholder meeting, Elon Musk announced a slate of changes for Tesla’s FSD hardware. For the first time, Musk talked openly about details of Tesla’s upcoming FSD Hardware 5, or “AI 5” and the differences between hardware 3 and hardware 4.
Hardware 4.0 Divergence
Currently, hardware 4.0 runs Hardware 3 in emulation mode, but with the completion of Tesla’s new AI-focused Supercomputer cluster, hardware 4 will eventually diverge from Hardware 3. Emulation mode simulates hardware 3, which means that today, hardware 4 is very similar to hardware 3. Elon Musk confirmed that the new cluster will be entirely focused on hardware 4 training, rather than hardware 3.
Hardware 4’s cameras are approximately 4-5x better in terms of resolution and fidelity than hardware 3, and hardware 4.0 is about 3-5x faster and powerful in inference capabilities. These are some pretty significant numbers, and Musk said he expects hardware 4.0 to eventually be about 5x better than hardware 3.0.
Hardware 3
While hardware 3 is no longer being produced, Tesla has said in the past that it will be capable of self-driving at a level that is safer than humans. Elon Musk confirmed on stage that hardware 3 would continue to receive training and would still have new FSD versions developed for it, however, hardware 4 would eventually be “about 5 times” better than hardware 3.
At some point hardware 3 will hit the end of its service life, but that’s not expected for at least several years.
Sadly, Tesla has previously confirmed that they do not intend to have a hardware 3 to hardware 4 retrofit, as the size of the MCU and electrical harnesses differ between vehicle hardware iterations.
Hardware 5.0 - “AI 5”
Elon Musk also officially announced Tesla’s FSD hardware 5.0, which he says Tesla is now calling “AI 5”. AI 5 is expected to hit the production lines for customer vehicles in approximately 18 months - around December 2025, with a massive slate of improvements. It is expected to be approximately 10x better than hardware 4.0, and up to 50x better in terms of inference power alone.
Of course, these massive improvements don’t come without a cost – AI 5 will consume up to 800 watts of power. In comparison, hardware 3 and hardware 4 use about 200 watts today, so don’t expect any upgrades from hardware 4. Like most modern processors, AI 5 can adjust its power efficiency. It’ll be able to ramp up or down its processing power depending on the complexity of the scene and the power needed.
We can expect that AI 5 will likely run in emulation mode when it arrives, and improvements between hardware 4 and AI 5 will take some time, similar to how hardware 4 is still in emulation mode today.
Musk Talking About AI 5
Musk talks about Tesla’s FSD hardware below during Tesla’s 2024 shareholder’s meeting, where he officially talked about Tesla’s upcoming hardware 5.0 for the first time.
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One of Tesla’s greatest weaknesses, as it has quickly become one of the world’s most ubiquitous cars on the planet has always been service. Escalating issues to managers and sometimes even reaching a Tesla Service employee can be a total coin flip, depending on your Service Center.
Tesla is continuing its push to integrate AI across its customer support channels in an effort to improve customer service. According to Raj Jegannathan, Tesla’s VP for IT, AI Infrastructure, Apps, Infosecurity, and Vehicle Service Operations (that’s a lot), Tesla is launching a pilot program for a new AI designed to improve customer interactions with Service.
Tesla Service’s new AI Agent detects comms delays, monitors sentiment, & auto-escalates to leaders. Starts tomorrow at 10 pilot locations. In 2 weeks, type “Escalate” in ‘message center’ to reach managers. Guardrails in place to prevent abuse. We’ll keep improving!
At 10 pilot service locations, this new AI agent will begin working behind the scenes at Tesla Service, to help with customer communications. It will provide three key features:
Detect Communications Delays: The AI will actively monitor service interactions to identify potential delays in communication or progress. These are often a key pain point for customers who reach out to Tesla Service and don’t receive a response for several days, as Service has nothing new to add. The AI can now step in and let the customer know Tesla is still waiting on parts or something else.
Monitor Customer Sentiment: By monitoring the tone and content of the messages between the customer and Service agents, Tesla will be able to identify situations where a customer might be dissatisfied or facing difficulties.
Auto-Escalate: If either a communications delay or negative sentiment is detected, the AI can automatically escalate issues to human managers for review. This helps to address problems before customers need to seek escalation themselves or become upset about an issue.
Customer Escalation Requests
Alongside the new AI tool, Tesla is also introducing a more direct way for customers to get higher-level attention. According to Tesla, within the next two weeks, customers can simply type “Escalate” in order to have their issue routed directly to management.
Raj’s team is currently working on implementing guardrails to prevent abuse, but this will soon make its way to improving Tesla’s service offerings. We’re glad to see Tesla taking steps to identify and correct deficiencies in the process - it has always been a sore tooth for Tesla in the last few years.
Over at 7000 Santa Monica Boulevard in Hollywood, Los Angeles, Tesla’s stainless steel-clad retro diner is really coming together. Most recently, we saw the gigantic 45-foot LED screens for the outdoor theater come to life, but there’s been more going on inside than we originally knew about.
Now, thanks to photos shared with us by Thomas Adamian, who ventured over to the site, we have our very first look inside the nearly completed Tesla Diner.
While we knew the concept aimed for a retro-futuristic theme, blending a diner with Superchargers and a modern open-air theater, the initial stages of the interior are well beyond a mere nostalgia project.
Interior Explored
Inside, we’ve got a seamless blend of classic circular diner-style seating accompanied by distinctly modern lighting and fixtures. This definitely brings to life that modernist art-deco feel and feels right at home alongside Tesla’s Robovan, rather than a period set-piece.
The facility is still clearly under active construction in these images, with materials and equipment visible, but they provide the best and most detailed glimpse so far of what the indoor dining experience will look like.
Front Door / Diner Logo
The circular spaceship-like entrance
Thomas Adamian
The circular entrance looks like something out of this world - and while we’re hoping the doors slide inside the walls, like a pocket door, they likely open in or out like a standard door.
This is also one of our first looks at the Tesla Diner sign, which hangs inside the doorway. The logo itself also has an art-deco look and feel. On the door, there’s also a sign confirming that the diner will be open 24/7.
Windows & Artwork
Shutters, Stealth Fighters, and Cybertrucks
Thomas Adamian
Tesla really nailed the style with the windows and shutters, matching the diner’s vibe. In the background, you can also see the concept art for the Cybertruck. We hope Tesla includes artwork for other vehicles as well, as they help tell the Tesla story and give diners an inside look at the company.
Exterior Seating
The exterior seating
Thomas Adamian
There’s also an exterior seating space, which seems to be in the early phases of being laid out. None of those pallets have been disassembled yet, but they likely have outdoor furniture, letting customers sit outside and enjoy a meal.
The Tesla Diner in Hollywood is shaping up to be much more than just a restaurant with chargers. It’ll have in-app functionality with the Tesla app and offer room for 200 diners inside, along with the ability to use a drive-in theater with in-car service. Tesla’s original plans also include rooftop seating, so there’s likely more to come once the construction phase continues.
The idea for a Tesla Diner began in 2023, when it was announced at Tesla’s Investor Day. While the diner has yet to open, it already seems like it’ll be an iconic establishment for the area. Amid recent brand turbulence tied to politics, this project has the potential to refresh Tesla’s image—offering a fun, memorable place to charge.
If there’s one thing we’re hoping for, it’s that the food matches the creativity of the design. Ideally, what Tesla is building in Hollywood becomes a blueprint for similar diners across North America—and eventually, the world.
With its unique concept and prime location, the Diner is poised to become a true LA landmark and a must-visit destination for locals and tourists alike.
![Exclusive: A Look Inside the Tesla Diner [PHOTOS]](https://www.notateslaapp.com/img/containers/article_images/2025/diner-seats.jpg/b0b4cb51b80d1f29298c9ca6b9ad2ae8/diner-seats.jpg)
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