In early 2023, Tesla launched its FSD Hardware 4.0 – now known as AI4 – an improved version of Hardware 3 with various advantages. This hardware launch initially came off to a rocky start with FSD and Autopilot not being available to freshly delivered vehicles.
Today though, AI4 is the next step as Tesla strides towards full autonomy. While Tesla hasn’t abandoned HW3 or declared it as legacy yet – and doesn’t seem to plan to, it’s still important to be able to figure out what hardware your vehicle has. This is especially true for those who have paid for, or are subscribed to FSD – as it seems that going forward, AI4 will receive major FSD updates before hardware 3, which will require optimization.
So, let’s go over what AI4 offers in terms of improvement, the fact that there is no retrofit path from Hardware 3, and finally, a few easy ways to tell FSD Hardware 3 from Hardware 4/ AI4.
HW4 / AI4 Improvements
AI4 brought along several improvements, including new cameras, new electrical and wiring harnesses, and most of all – improved processing power.
The new cameras bring improved resolution for better details. The rear camera on AI4 has a resolution of 1448x938 vs 1280x960 on Hardware 3. However, there’s a much larger differences in the front cameras. HW4/AI4 has a resolution of 2896x1876 while HW3 has a resolution of 1280x960. That’s a huge improvement in quality - additionally, that telltale red tint that they have ensures better performance in low-light conditions. The video below compares the difference between HW3 vs HW4.
Musk previously said that HW4 is about 3-5x faster than hardware 3, although all of that compute power isn’t being utilized yet. We’ll likely see the full power of HW4 come into play with the divergence of HW4 later this year.
How to Tell If You Have HW3 or HW4 / AI4
Not a Tesla App
If you have access to the inside of the vehicle, the easiest and surefire way of determining the FSD hardware of a Tesla is to check in settings. As of software update 2024.38, Tesla has added the ability to view the vehicle’s hardware version. To see simply go to Settings > Software and then tap Additional Vehicle Information.
In the list of options, you’ll see ‘Autopilot computer’, followed by the FSD computer hardware version. You’ll likely see version 2.5, 3 or 4.
If You Don’t Have Access to the Vehicle
Note the telltale red glint of the HW4 cameras
Not a Tesla App
You should still be able to tell what version of the FSD computer is in the vehicle even if you don’t have access to the inside of the car. There are a few several ways to tell if you have Hardware 3, or HW4.
Delivery Date
The first is based on your model and delivery date. If you purchased Model S or X, you’ll likely have AI4 if you purchased after March 2023. If you have a Model Y, it’s after late May 2023 for vehicles made in the United States. The updated 2024 Model 3 has HW4, but if you have a 2017-2023 Model 3, you’ll have Hardware 3.
Red Camera Lenses
Next, if you’re not sure of the delivery date of your vehicle, or want to confirm, take a look at the vehicle itself. HW4/AI4 has cameras with red lenses – the easiest place to see this is on the front cameras – where there will be 2 red lenses and one black (fake) lens. AI4 got rid of the 3rd front-facing camera since the cameras now have a higher resolution.
The repeater cameras are also slightly different, with the same red tint, but include a smaller and narrower turn indicator.
HW4 (top) and HW3 (bottom) repeater cameras
Not a Tesla App
No Retrofit to HW4
Elon Musk and Tesla have confirmed that unlike AP 2.5 or AP 2, Tesla does not intend to offer a retrofit for older vehicles. This isn’t a surprising move, especially given the fact that there is an entirely new wiring and cooling harness for the compute unit in AI4.
This, in turn, with AI4’s different form factor, means that upgrading HW3 vehicles to AI4 isn't feasible. A retrofit would be a complex and expensive task that would likely require building a custom solution that would fit into HW3 vehicles. It also comes with other complications, such as overwhelming Tesla Service. Instead, Tesla will continue to do it the software way – by optimizing and updating the FSD models to perform well on Hardware 3.
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Tesla is rolling out a fairly big update for its iOS and early-access-only Robotaxi app, delivering a suite of improvements that address user feedback from the initial launch last month. The update improves the user experience with increased flexibility, more information, and overall design polish.
The most prominent feature in this update is that Tesla now allows you to adjust your pickup location. Once a Robotaxi arrives at your pickup location, you have 15 minutes to start the ride. The app will now display the remaining time your Robotaxi will wait for you, counting down from 15:00. The wait time is also shown in the iOS Live Activity if your phone is on the lock screen.
How Adjustable Pickups Work
We previously speculated that Tesla had predetermined pickup locations, as the pickup location wasn’t always where the user was. Now, with the ability to adjust the pickup location, we can clearly see that Tesla has specific locations where users can be picked up.
Rather than allowing users to drop a pin anywhere on the map, the new feature works by having the user drag the map to their desired area. The app then presents a list of nearby, predetermined locations to choose from. Once a user selects a spot from this curated list, they hit “Confirm.” The pickup site can also be changed while the vehicle is en route.
This specific implementation raises an interesting question: Why limit users to predetermined spots? The answer likely lies in how Tesla utilizes fleet data to improve its service.
Here is the new Tesla Robotaxi pickup location adjustment feature.
While the app is still only available on iOS through Apple’s TestFlight program, invited users can download and update the app.
Tesla included these release notes in update 25.7.0 of the Robotaxi app:
You can now adjust pickup location
Display the remaining wait time at pickup in the app and Live Activity
Design improvements
Bug fixes and stability improvements
Nic Cruz Patane
Why Predetermined Pick Up Spots?
The use of predetermined pickup points is less of a limitation and more of a feature. These curated locations are almost certainly spots that Tesla’s fleet data has identified as optimal and safe for an autonomous vehicle to perform a pickup or drop-off.
This suggests that Tesla is methodically “mapping” its service area not just for calibration and validation of FSD builds but also to help perform the first and last 50-foot interactions that are critical to a safe and smooth ride-hailing experience.
An optimal pickup point likely has several key characteristics identified by the fleet, including:
A safe and clear pull-away area away from traffic
Good visibility for cameras, free of obstructions
Easy entry and exit paths for an autonomous vehicle
This change to pick-up locations reveals how Tesla’s Robotaxi Network is more than just Unsupervised FSD. There are a lot of moving parts, many of which Tesla recently implemented, and others that likely still need to be implemented, such as automated charging.
Frequent Updates
This latest update delivers a much-needed feature for adjusting pickup locations, but it also gives us a view into exactly what Tesla is doing with all the data it is collecting with its validation vehicles rolling around Austin, alongside its Robotaxi fleet.
Tesla is quickly iterating on its app and presumably the vehicle’s software to build a reliable and predictable network, using data to perfect every aspect of the experience, from the moment you hail the ride to the moment you step out of the car.
The massive legislative effort titled the "Big Beautiful Bill" is taking direct aim at what has become one of Tesla’s most critical and profitable revenue streams: the sale of US regulatory credits. The bill could eliminate billions of dollars from Tesla’s bottom line each year and will slow down the transition to electric vehicles in the US.
The financial stakes for Tesla are absolutely immense. In 2024, Tesla generated $2.76 billion from selling these credits. This high-margin revenue was the sole reason Tesla posted a profit in Q1 2025; without the $595 million from regulatory credits, Tesla’s reported $409 million in profit would have been a $189 million loss.
How the ZEV Credit System Works
Zero-Emission Vehicle (ZEV) credits are part of state-level programs, led by California, designed to accelerate the adoption of electric vehicles. Each year, automakers are required to hold a certain number of ZEV credits, with the amount based on their total vehicle sales within that state. Under this system, automakers that fail to sell a certain percentage of zero-emission vehicles must either pay a significant fine or purchase credits from a company that exceeds the mandate.
Automakers who fail to sell enough EVs to meet their quota have a deficit and face two choices: pay a hefty fine to the state government for each missing credit (for example, $5,000 per credit in California) or buy credits from a company with a surplus.
As an all-EV company, Tesla generates a massive surplus of these credits. It can then turn around and sell them to legacy automakers at prices cheaper than the fine, creating a win-win scenario: the legacy automaker avoids a larger penalty, and Tesla gains a lucrative, near-pure-profit revenue stream.
This new bill will dismantle this by eliminating the financial penalties for non-compliance, which would effectively make Tesla’s credits worthless. While the ZEV program is a state law, the Big Beautiful Bill will fully eliminate the penalties at a federal level.
A Multi-Billion Dollar Impact
The removal of US ZEGV credits would be a severe blow to Tesla’s financials. One JPMorgan analyst estimated that the move could reduce Tesla’s earnings by over 50%, representing a potential annual loss of $2 billion. While Tesla also earns similar credits in Europe and China, analysts suggest that 80-90% of its credit revenue in Q1 2025 came from US programs.
Why the Program Exists
While the impact on Tesla would be direct and immediate, the credit system has a wider purpose. It creates a strong financial incentive for legacy automakers to develop and accelerate their zero-emission vehicle programs, whether it’s hydrogen, electric, or another alternative.
Eliminating the need for these credits would remove that financial pressure. This could allow traditional automakers to slow their EV transition in the US without the fear of a financial penalty, potentially leading to fewer EV choices for consumers and a slower path to vehicle electrification in the country.
Big, But Not Beautiful
On Sunday Morning TV, Elon Musk was asked his thoughts on the Big Beautiful Bill. They were pretty simple. A bill could be big, or it could be beautiful - I don’t know if it can be both, Musk stated.
Elon Musk in new interview: "I was disappointed to see the massive spending bill, frankly, which increases the budget deficit and undermines the work the DOGE team is doing. I think a bill could be big, or it could be beautiful—I don't know if it can be both." pic.twitter.com/DnyjHN7xCY
The bill poses a threat to Tesla’s bottom line and to the adoption of EVs in the US market, where automakers will no longer have a financial incentive to transition to cleaner vehicles, a market they’ve regularly struggled in when competing against Tesla.
Tesla will have to work carefully in the future to cut expenses to remain profitable after the elimination of these regulatory credits.
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