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Tesla to Retrofit HW3 Cars, Revenue Up 16% Amid Lawsuits

4/23/2026

Summary

Story summary

Tesla CEO Elon Musk said the company will retrofit millions of HW3 cars with HW4 computers and cameras in city micro-factories, offering discounted trade-ins.
He said HW3’s memory bandwidth is one-eighth that of HW4, making unsupervised Full Self-Driving impossible.
HW3 owners have sued Tesla, alleging the promised autonomous capability was not delivered.
Tesla reported Q1 revenue of $22.38 billion, a 16 % rise, and said capital spending will increase for the upgrades.

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Story summary

Tesla CEO Elon Musk said the company will retrofit millions of HW3 cars with HW4 computers and cameras in city micro-factories, offering discounted trade-ins.
He said HW3’s memory bandwidth is one-eighth that of HW4, making unsupervised Full Self-Driving impossible.
HW3 owners have sued Tesla, alleging the promised autonomous capability was not delivered.
Tesla reported Q1 revenue of $22.38 billion, a 16 % rise, and said capital spending will increase for the upgrades.