Microfactories HW3 FSD Fix

[Outdoors]

From this evenings call regarding the HW3 issue.

Tesla said it would open up small "micro factories" to replace older vehicles' hardware or, alternatively, offer discounted trade-ins.

As expected the roadster revel was delayed again.

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[pricedm]

Most cost effective: financial incentives to owners of HW3 vehicles to trade in for HW4.

 

[Dvidhani]

I cant take advantage of discounted trade in as they are stopping production of Model X. Model S/X owners with HW3 should be given the option to retrofit

 

[Cayden Thompson]

Can someone explain the "discounted trade-in?"

 

[YDR37]

From this evenings call regarding the HW3 issue.

Tesla said it would open up small "micro factories" to replace older vehicles' hardware or, alternatively, offer discounted trade-ins.

Elon specifically indicated that the existing service centers would not be handling the HW3 upgrades. This means that there could be some delay while they set up a new "micro factory" network.

Elon Musk — Chief Executive Officer
So for customers that have bought fsd, what we’re offering is essentially a trade in, like a discounted trade in for cars that have AI4 hardware.

And we’ll also be offering the ability to upgrade the car to replace the computer and you also need to replace the cameras, unfortunately, to go to hardware for. So to do this efficiently, we’re going to have to set up like kind of micro factories or small factories in major metropolitan areas in order to do it efficiently. Because if it’s done just at the service center, it’s, it is extremely slow to do so and inefficient. So we basically need like many production lines to make the change.

 

[YDR37]

Can someone explain the "discounted trade-in?"

All we know is what Elon said today:

Elon Musk — Chief Executive Officer
So for [HW3] customers that have bought fsd, what we’re offering is essentially a trade in, like a discounted trade in for cars that have AI4 hardware.

My interpretation: if you bought an HW3 Tesla vehicle, and you bought FSD, you will be able to take it to a Tesla store and trade it in on a newer AI4 vehicle. In this situation, Tesla will provide a significant (but unspecified) discount on the AI4 vehicle, so you will be able to upgrade to an AI4 vehicle at a relatively low cost. That's my guess, but I could be wrong.

Alternatively, you could keep your old HW3 vehicle but upgrade to AI4 hardware after the new "micro-factory" network is established, as per the previous post. The cost of the upgrade is not clear. Maybe it is free if you own an HW3 vehicle and bought FSD. Maybe you have to pay if you own an HW3 vehicle, but did not buy FSD. We don't know, and Tesla has not provided much detail as yet.

 

[Cayden Thompson]

All we know is what Elon said today:

My interpretation: if you bought an HW3 Tesla vehicle, and you bought FSD, you will be able to take it to a Tesla store and trade it in on a newer AI4 vehicle. In this situation, Tesla will provide a significant (but unspecified) discount on the AI4 vehicle, so you will be able to upgrade to an AI4 vehicle at a relatively low cost.

Alternatively, you could keep your old HW3 vehicle but upgrade to AI4 hardware after the new "micro-factory" network is established, as per the previous post. The cost of the upgrade is not clear. Maybe it is free if you own an HW3 vehicle and bought FSD. Maybe you have to pay if you own an HW3 vehicle but did not buy FSD. Tesla has not provided much detail yet..

Maybe they will give me a discount on the fire sale AWD CT I ordered if I trade in our MY. I wonder if the FSD will transfer in this case

 

[That Beast Mode]

Their idea of "Significant" might be different than everyone else's. When I was looking at inventory model X's they had demos and repaired vehicles that were anywhere from $700-$3000 off msrp... Even at the end of that range, I don't really consider a $3k discount off buying a new car to replace one that can't deliver UFSD as significant, helpful yes but not a deal maker.

 

[AverageJoe]

Especially for those that paid the inflated $15k for fsd. It would have to be a substantial discount. Problem is I don't like the new look of the Y juniper

 

[REM]

I highly suspect that these "micro-factories" will be Robotaxi fleet service centers too, by the way. So nothing is lost on the development.

The good news is that Tesla believes they will need the surge capacity as soon as people realize they can have unsupervised FSD and distributed inference with an update to the hardware.

 

[YDR37]

Their idea of "Significant" might be different than everyone else's.

It would have to be a substantial discount.

Tesla should have an incentive to make the discount attractive. Their options are: (1) swap an HW3 vehicle for an AI4 vehicle, or (2) upgrade the hardware on an HW3 vehicle (including computer, power supply, and cameras) to AI4 standards.

Option (1) seems potentially simpler, easier, and faster than option (2). So even if Tesla has to subsidize the swap with a hefty discount, it could end up being less hassle and expense than the alternative of upgrading the old hardware.

 

[Cayden Thompson]

Tesla should have an incentive to make the discount attractive. Their options are: (1) swap an HW3 vehicle for an AI4 vehicle, or (2) upgrade the hardware on an HW3 vehicle (including computer, power supply, and cameras) to AI4 standards.

Option (1) seems potentially simpler, easier, and faster than option (2). So even if Tesla has to subsidize the swap with a hefty discount, it could end up being less hassle and expense than the alternative of upgrading the old hardware.

I'll take a heavily discounted SAWD please

 

[CyberGus]

Their idea of "Significant" might be different than everyone else's

If the retrofit cost is, say, $5k, then offering that much off for a trade-in is a no-brainer. If the FSD purchase does not transfer, then they owe that back, too.

Of course, Tesla will then have a glut of used cars to offload...

 

[YDR37]

Alternatively, you could keep your old HW3 vehicle but upgrade to AI4 hardware after the new "micro-factory" network is established, as per the previous post. The cost of the upgrade is not clear. Maybe it is free if you own an HW3 vehicle and bought FSD. Maybe you have to pay if you own an HW3 vehicle, but did not buy FSD. We don't know, and Tesla has not provided much detail as yet.

Another potential consideration: Tesla is apparently planning to introduce a more powerful version of AI4 in 2027, tentatively called "AI4.1" or "AI4+". Presumably if you traded in your HW3 vehicle in 2027, you would get a new 2027 vehicle with the latest AI4+, rather than today's AI4.

What happens if you upgrade your HW3 vehicle? Would Tesla give you AI4 or AI4+? We don't know.

Elon Musk — Chief Executive Officer
We are planning an AI4 upgrade to use newer generation RAM. So it will go from 16 gigabytes to, I think, 32 gigabytes per SoC. So a total of 64 gigabytes, and probably a 10% increase in compute in sort of into — trillions of operations per second and in memory bandwidth. So that’s AI4.1 or AI4+, probably goes into production middle of next year, I think, depends. It depends on — Samsung is doing the modifications for us. So it sort of depends on when they’re able to finish that — finish those modifications and bring it to production.

 

[Outdoors]

If they rolled it into a hefty Luxe package discount I would buy another S or X. Oh wait. They don't do that anymore.

I am actually hoping for conquest offerings from other OEM's. Mercedes EQS sounds yummy.

The updated 2027-2028 Mercedes-Benz EQS sedan features a significantly increased range, with the EQS 450+ now achieving an estimate 575 on WLTP thanks to a new 122 kWh (usable) battery and enhanced efficiency. The range upgrade includes 800-volt charging architecture, allowing a 350 kW charge to add roughly 200 miles in 10 minutes.

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