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Tesla has been ordered to refund $10,000 to a customer after arbitration found the Full Self-Driving (FSD) system failed to deliver promised capabilities, highlighting ongoing issues with Tesla’s FSD program. Despite hardware upgrades from HW2 to HW4, true autonomous driving remains elusive, causing growing customer frustration and legal challenges. The case underscores Tesla’s lack of transparency on software access and hardware limitations, raising concerns about the company’s roadmap and customer trust. Tesla’s handling of FSD now faces increased scrutiny amid calls for clearer upgrade plans and accountability.

Tesla’s HW3 vehicles are receiving fewer updates and lagging behind in Full Self-Driving (FSD) capabilities compared to HW4 and newer platforms. While Elon Musk has acknowledged the need for hardware upgrades for FSD buyers, no official timeline has been set. Some HW3 users report positive experiences with FSD v12.5, but limitations persist and future support remains uncertain.

Tesla may face one of the largest product liability crises in automotive history after Elon Musk confirmed that its HW3 hardware cannot achieve promised full self-driving capabilities. This impacts approximately 4 million vehicles globally, many of which were sold under the assertion that they were “robotaxi-ready.” Tesla plans to retrofit only FSD package buyers, leaving others at legal odds. As lawsuits mount and public trust wanes, this development marks a major turning point in Tesla’s autonomous driving journey.