Tesla CEO, Elon Musk, has made a surprising admission that the hardware installed in millions of cars for Full Self-Driving (H3) cannot deliver on what customers paid for, stating that it does not have the capability to achieve unsupervised FSD. He identified the hardware’s “memory bandwidth” as the “chokepoint” for this admission. Musk proposed the solution to this issue: build “microfactories” in major cities to retrofit HW3 vehicles with a new computer and camera system. He also announced plans to convert all HW3 cars to HW4, and mentioned a discounted trade-in program but provided no further details on cost, timeline, or scope. The admission has reignited ongoing litigation, with multiple class action lawsuits filed by HW3 owners alleging years of misrepresentation. California regulators have previously argued that Tesla's vehicles could not perform what buyers were led to believe.