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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Tesla’s recent focus on expanding and vertically integrating its battery production is beginning to take global steps, starting with a battery recycling and service center in South Australia. In Marion, a suburb of Adelaide, the council recently voted in favor of a proposal that would see contaminated public land developed and leased to Tesla.
The move promises local jobs and environmental remediation but has garnered a lot of public debate focused on Elon’s moves outside his role as CEO.
The proposal involves a site that’s currently unusable for recreation due to chemical contamination. A local developer plans to acquire and remediate the land, constructing a new facility specifically for Tesla. This site would reportedly serve two purposes: recycling old lithium-ion batteries and serving as a Tesla Service Center.
Tesla’s Commitment to Recycling
Tesla recently announced its intention to ramp up its battery recycling and repurposing efforts. During the Q1 2025 Earnings Call, Tesla’s executives highlighted substantial progress. Tesla had recycled enough materials in Q1 2025 to build approximately 21,000 Model Y RWD vehicles, representing a 136% year-over-year increase from Q1 2024.
Dedicated regional hubs like this one would be a logical next step in expanding the recycling loop and furthering Tesla’s vertical integration while also reducing its reliance on new materials. In addition, local sources also mentioned that Tesla could be repurposing older lithium-ion batteries for other purposes, including their inclusion in stationary battery storage systems like Powerwall or Megapack.
Of course, the facility also has major benefits for the local community, including creating around 100 local jobs, as well as injecting approximately $56 million into the local economy. Further, developing the contaminated land as a renewable facility is one of the safest ways to use the land that’s been sealed off from the public for nearly a decade.
Elon’s Image
The proposal isn’t without its critics. Local opposition was voiced during community consultations, with most of the negative sentiment directed towards Elon rather than the facility itself. Despite these complaints, the local council elected to proceed, arguing that tangible economic and environmental benefits far outweigh any perceived geopolitical or symbolic harm that shutting down the project could cause.
With the council’s endorsement on record, the proposal now moves to the South Australian state government for approvals regarding the change in land classification.
Tesla’s software updates often hide some undocumented features alongside the official release notes, and software update 2025.20 is no exception. With this update, Tesla has introduced a welcome quality-of-life improvement for the in-vehicle Dashcam Viewer. Users now have the ability to select and delete multiple clips at once (thanks, Max!). However, this addition is limited to the updated Dashcam Viewer for Ryzen-based vehicles.
While it may seem a small change, if you wanted to clear out your Dashcam clips, you’d have to either delete them one by one in the vehicle or remove your Dashcam USB drive and take it to a computer to erase all the clips at once. For those who frequently see Sentry Mode notifications or often record clips with their Dashcam, this is a useful addition.
This feature is currently limited to vehicles that have received the updated Dashcam viewer - which means vehicles equipped with AMD Ryzen processors (how to tell if you have Intel or AMD). This includes all Model 3 and Model Y vehicles with AMD Ryzen, as well as the 2021+ Model S and Model X vehicles.
Unfortunately, since the Cybertruck does not yet have access to the updated Dashcam viewer or support for the additional two cameras in Sentry Mode, it has not received this feature yet either.
This undocumented feature is a very welcomed addition for many users who carefully manage their Dashcam and Sentry Mode videos.
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