Tesla Talks FSD Hardware 4.0, but There Will Not Be Retrofits

Tesla's new hardware 4.0 is close, but don't expect retrofits

Tesla

Tesla's upcoming FSD hardware, hardware 4.0, is nearing completion, and although there is limited information about it, it sounds like it'll bring significant improvements. It's yet to be known when the new hardware will debut, but it is clear Tesla will not be retrofitting the existing fleet.

No Upgrades From FSD Hardware 3.0

Regarding upgrading hardware 3 to hardware 4, Elon Musk told investors:

"The cost and difficulty of retrofitting hardware 3 with Hardware 4 is quite significant. So, it would not be, I think, economically feasible to do so."

Musk said Hardware 3 is five years old but, "is still the most efficient inference computer in the world."

What Will Be In Hardware 4.0

It's believed that the new hardware will use 5-megapixel cameras; the current cameras are 1.2 megapixels. Also, some leaked pictures appear to reduce the amount of front-facing cameras from three to two and allow for heaters and fans.

The higher-resolution cameras will give Autopilot a significant advantage when trying to determine objects that are further away because of the additional pixels. An object that is 100 or 200 feet away may only be made up of a few pixels, but with almost 5x the resolution, the newer cameras will be able to more accurately determine what the object is. This is also true for everything else, such as the curvature of the upcoming turn.

In addition to the cameras, we know that there will be a new FSD computer which is expected to be about 4x more powerful than the current FSD computer in hardware 3.0. Part of this additional processing power will no doubt go toward processing the additional 32 million pixels that the newer cameras will provide.

However, hardware 4.0 will be about more than just a faster computer and better cameras. It is also expected to include an HD radar, which Elon Musk has talked about in the past and has been seen in Tesla's FCC filings. The addition of a high-definition radar could provide a significant advantage to FSD by sensing objects that cameras alone can't.

The difference between radar and HD imaging radars

fierceelectronics.com

When Musk talks about the upgrade from hardware 3.0 to hardware 4.0 not being feasible, that likely means there may be even more to it than we already know. This could just be due to the new radar, new power, or space requirements for the new computer, but it's also possible that there could be more to hardware 4.0 than we know.

We know that Tesla's Robotaxi is already in development and this is a vehicle that is expected to be completely driverless. Tesla won't have the convenience of having a driver behind the wheel here. This could mean that Tesla may need to add additional hardware that we haven't heard about it. This could be different camera placements, or something entirely different.

What we know for sure is that hardware 4.0 will include higher-res cameras, a faster computer and likely an HD radar, but there could be even more that makes it infeasible to retrofit older vehicles.

Elon Talking About Hardware 4

The video below is queued up to the part where Elon talks about FSD hardware 4.0 (segment begins at 30:10).

Hardware 3.0 Will Be Capable of FSD

Musk put the argument into perspective for those who may want to wait. "Hardware 3 will not be as good as Hardware 4, but I'm confident that Hardware 3 will so far exceed the average -- the safety of the average human." He then broke it down further, "let's say, for argument's sake, if Hardware 3 can be, say, 200% or 300% safer than human, Hardware 4 might be 500% or 600%." In fact, stats show that Teslas operating with Autopilot engaged at 10 times safer, and that is with Hardware 3.

Will Teslas With HW3 Really Be Autonomous?

Listening to Musk's choice of words is interesting, he seems to have steered away from words he may have used in the past, such as referring to level 5 autonomy, or using the words robotaxi, or autonomous driving. Instead, he chose to say hardware 3 would exceed the safety of an average human. That could mean that Tesla's current FSD implementation will always require a driver behind the wheel, but the combo of Tesla's FSD system and the driver as a backup would be multiple times safer than a human.

Tesla has to be Careful

The CEO had a tightrope to walk when talking about the existing hardware and what the future system will look like. You may recall in late 2022 when demand for Teslas started to slow down. Many observers believe it was due to the impending tax credits the Inflation Reduction Act would provide for buyers of electric vehicles. Tesla cut prices for the last few days of 2022 to match tax credits, but only for consumers who took delivery before the end of the year.

Now, a new dilemma, how many consumers will wait for the latest hardware? There is no timeline for it, the only vehicle we know it will be in is the Cybertruck, but the Cybertruck won't start production until this summer.

FSD Hardware 5.0

Musk has a point. Hardware 3 is fantastic, but with a new one that is twice as good on the horizon, it losses some exceptionality. Then there is this next line by Musk, "with Hardware 4 coming and then Hardware 5 beyond that where there are significant leaps." So yes, we already have talk of Hardware 5. However, this is not expected for several years.

Once again, mark your calendar for March 1, 2023. Tesla is hosting Investor Day, and along with more information on the next-generation vehicle, we may get more details on hardware 4.0 and what it will contain.

Tesla Expected to Offer FSD Transfers in Europe

Not a Tesla App

It has been a long wait for FSD for European customers, many of whom paid for the feature years ago on now legacy hardware. While the FSD transfer program has come and gone multiple times, there’s something to be said about having it available in North America, where it can be used, and in Europe or other countries, where it still just remains the same as Enhanced Autopilot (differences between Autopilot, EAP, and FSD).

FSD Transfer is a nice goodwill gesture from Tesla that in theory doesn’t cost them anything. Instead, it keeps customers, especially those who have been waiting for years, loyal and happy. It also incentivizes them to upgrade to a newer Tesla with HW4, where FSD will hopefully be achieved.

In a reply to a post on X, Elon agreed with the suggestion that offering FSD transfers in Europe would be a fair solution for those who have already purchased FSD but can’t use its capabilities.

Sounds fair

— Elon Musk (@elonmusk) July 13, 2025

A Fair Solution

FSD Transfer directly addresses a growing concern for many long-term European Tesla owners. Thousands of customers purchased the full package, often many years ago, with the expectation that FSD would eventually be capable and approved for use. However, the reality is that FSD, even as an advanced driver assistance system (ADAS), continues to be pushed back in Europe.

As the regulatory process continues at a snail's pace, many of these early supporters are now reaching or have already passed the point where they’re ready to upgrade to a new Tesla.

Without the transfer program, it's a difficult choice: either throw away your original investment in FSD and pay for the package a second time (FSD price history), or subscribe to it in the future.

Offering FSD transfers is a good way for Tesla to meet them halfway. It's a difficult situation, and one that’s being hindered by processes beyond the control of both the customer and Tesla. However, a transfer helps both parties. Tesla sells another vehicle, and the customer gets to keep FSD.

When Will it Be Available?

Based on how FSD transfers have worked in the past following Elon’s announcements, this feature is likely to become available for a limited time period in the coming days or weeks. If it happens, we should expect an announcement from Tesla Europe on X and emails being sent out to Tesla customers.

Once the program is in place, all you need to do is complete your vehicle purchase and then inform your Tesla sales advisor that you’d like to transfer FSD. You don’t even have to sell or trade in your old Tesla; FSD will simply be removed from it as a feature.

Hopefully, Tesla enables FSD Transfers for everyone, regardless of region. It should be an ongoing offer until at least FSD is approved in the given country or region.

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Tesla Increases Robotaxi Fare Fee, Up from $4.20

Not a Tesla App

The introductory price for Tesla’s Robotaxi Network has finally been updated. In a post on X, Elon Musk confirmed that the new fare would be rolling out to complement the new Robotaxi geofence expansion.

This change marks the first adjustment to Tesla’s fares since the initial $4.20 launch price 23 days ago. While the price increase may seem significant in terms of percentages, when compared to other options in the ride-hailing area, it is still drastically cheaper.

But the price is now a princely $6.90, as foretold in the prophecy 😂

— Elon Musk (@elonmusk) July 14, 2025

Context Matters

Robotaxi currently operates on a simple, flat-rate model. The new $6.90 fare gets you a ride to anywhere within the recently expanded geofence.

So far, this is the opposite approach compared to other services, such as Waymo or traditional ride-sharing options like Uber and Lyft. All these services use dynamic pricing based on distance, time of day, and demand. A comparable trip on any one of these services could cost anywhere from $30 to $65, and potentially even higher during peak hours.

That doesn’t even include the tip fees for human drivers either - another win for Robotaxi (can you tip a Robotaxi?).

Even with the adjustment, the flat $6.90 fare remains less than half the price of a typical competing ride, making Robotaxi the most affordable point-to-point transportation option in Austin, aside from mass transit, for now.

A “Maturing” Service

The price change, moving from one meme-worthy number to another, is a sign that Robotaxi is finally graduating from its initial pilot phase. Following the first major expansion of the service area, this adjustment is a logical next step towards finding a more sustainable flat price.

While the new fare is a 65% increase over the old fare, the key takeaway is that it is still far cheaper than other options, and still just as meme-worthy. Tesla is aiming to have its early access riders complete as many rides as possible during these early months, and this pricing is still very reflective of that.

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