Josefine Bagger Sommerlund
The case could have major consequences for both car owners and the future standards of the auto industry.
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A tech promise from 2016 is catching up with Tesla. A court ruling may now force the EV giant to upgrade millions of vehicles — or face a multi-billion dollar payout.
Tesla Must Deliver What It Promised
According to Connery, a judge has ruled that Tesla must either upgrade or compensate owners of older vehicles whose technology doesn’t match the promises of full self-driving capability.
The Case Dates Back to 2016
In 2016, Tesla claimed all future cars would come with hardware ready for full autonomy.
That claim turned out to be inaccurate.
Musk Promised “Robotaxis”
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Tesla owners were supposed to receive a software update enabling full self-driving — without human intervention.
The Technology Still Falls Short
Nearly a decade later, the goal still hasn’t been achieved.
The HW3 computer, installed in millions of Teslas, is not powerful enough to handle the task.
Musk Admitted the Flaw in January
In early 2024, Elon Musk publicly acknowledged:
HW3 cannot support full autonomy without supervision — according to Connery.
What Does the Ruling Actually Mean?
Tesla must:
- Replace the computer in up to 4 million vehicles
or - Compensate the affected owners
A Multi-Billion Dollar Bill
Connery reports that, according to industry estimates published by the International Business Times, the upgrade could cost Tesla up to 70 billion DKK (approximately $10 billion USD).
This includes hardware, labor, and logistics.
Complex Compensation
It remains unclear how compensation will be calculated.
Especially for customers who paid for Full Self-Driving years ago, questions of fairness are now emerging.
Tesla Faces More Than Just Financial Risk
If mishandled, the case could trigger:
- Additional lawsuits
- A trust crisis for Tesla as a tech company
A Global Issue
Vehicles equipped with HW3 have been sold worldwide, making this a global challenge for Tesla’s reputation and future business.
Conclusion
Tesla’s tech promises are now under scrutiny — and coming up short.
The ruling could have far-reaching consequences, both financially and strategically, for the world’s most famous electric carmaker.
