Tesla, led by Elon Musk, must fix a critical error in 4 million vehicles, potentially resulting in a $10 billion expense.
Tesla, the electric car company led by Elon Musk, is facing a significant challenge.
A recent ruling could require the company to fix a mistake in about 4 million vehicles, which could cost Tesla around $10 billion.
Tesla’s self-driving technology faces significant challenges today.
The issue revolves around Tesla’s self-driving technology.
Back in 2016, Tesla claimed that all cars produced from that point onward would have the necessary hardware for full self-driving capabilities.
This means that the cars could eventually drive themselves without any human supervision.
Tesla even suggested that these vehicles could work as “robotaxis.” However, nearly ten years later, this promise has not been fulfilled.
Many customers are still waiting for the self-driving features that were promised.
In January 2023, Elon Musk admitted that the computers in some Tesla models are not powerful enough to achieve true self-driving capability.
Judge’s ruling impacts millions of Tesla vehicles.
A judge recently ruled that Tesla must upgrade the self-driving computers in certain vehicles.
This ruling is based on the fact that Tesla had previously claimed all cars made since 2016 would have the necessary technology.
The judge’s decision allows affected customers to access Tesla’s Full Self-Driving program without paying extra fees.
This ruling is crucial for the owners of the 4 million Tesla vehicles that are equipped with the HW3 computer.
Many of these customers expected their cars to be able to drive themselves, as promised by Tesla.
Now, they may have a path to getting the upgrades they need.
Huge costs of replacing self-driving computers
Replacing the self-driving computers in millions of vehicles will be a massive undertaking for Tesla.
Each replacement will require careful engineering to ensure the new hardware works properly with the existing systems.
Industry experts estimate that the total cost could reach as high as $10 billion.
Tesla has several models that use the HW3 computer, including the popular Model 3 and Model X.
The scale of this task is daunting, and it raises questions about how Tesla will manage the financial burden.
Compensation may be a viable alternative solution.
If Tesla chooses not to replace the computers, it could opt to compensate the affected vehicle owners instead.
However, determining fair compensation can be complicated.
Some customers bought the Full Self-Driving package years ago, and calculating the right amount for each owner could be a challenge.
This decision could also lead to additional issues. If Tesla does not handle the situation satisfactorily, it may face more lawsuits and damage its reputation.
Maintaining customer trust is vital for Tesla, especially as competition in the electric vehicle market grows.
Social media reactions
Users have mixed reactions on social media about Tesla’s situation.
Some users express concern over the reliability of self-driving technology, while others criticize the company for not delivering on promises.
One user said: I wish he would step away from Telsa. it’s a wonderful car company that make fantastic products.
They, and all the hard working people working there don’t deserve the hate. They fundamentally changed the car industry forever.
The second user wrote: It became profitable because of government subsidies. without them, it won’t survive
The third user commented: Buy a hybrid. Much better.
The fourth user added: Funny how hard the EV’s were pushed down our throats. Singing a different tune now.
Another user said: Even if gets cheaper, I won’t buy it. They are horrible, no style, and I like the run run noise from a gasoline car
