Image: Tesla Australia and New Zealand via X
Among all the hype surrounding Tesla’s imminent launch of supervised full self-driving (FSD) in Australia, there is one group of loyal Tesla customers being left in the dark, and with financial regrets: The owners of older Tesla vehicles who purchased FSD long ago and have not heard anything at all from Tesla for years.
I should know, because I got sucked in by Elon Musk’s promises and hype around FSD and decided to purchase FSD for my Model 3 a month after getting it in September, 2019. I remember watching the original Model 3 reveal event in March 2016 and thinking to myself, one day I will be able to summon my car to pick me up from the train station. Ha!
They say hindsight is 20:20, and my FSD blunder is a great example of what could have been. The Tesla share price closed on October 28, 2019 at $21.85 USD ($31.62 AUD using ATO’s historical exchange rate), and the stock price at time of writing is $333 USD or $505 AUD with current exchange rates.
If I had taken my $A8,500 that I spent on FSD and invested instead in Tesla stock, I would currently have nearly $136,000 to cash in. Wow! If I was a stock market genius and cashed out at the 52-week high on December 2024 ($488 USD, $770 AUD) this figure would be a crazy $207,000 – which is pretty depressing to be honest.
At first the figures seemed unbelievable, but I triple checked everything and am certain they are correct. Just in case you were wondering like me, that is enough to order 2 brand new fully loaded Model 3 Performance with every single possible option ticked. I never use emoji’s in my articles, but 😱 perfectly describes how I feel about those numbers.
Thankfully, my initial $1,500 reservation fee paid on March 31, 2016 was not such a waste, as the share price only grew by 20% in the 3.5 years to September 2019.
I was one of those fans who lined up outside the Tesla St Leonards store at around 5am to pay my reservation without actually seeing the Model 3 yet. I was certainly not as keen as Andreas Stephens, who famously camped out for 48 hours to secure his place at the front of the line.
You can’t see me in the picture below, but I was standing roughly where the big red arrow is, in about 20th place. I headed to work afterwards and watched the global reveal event several hours later.
Trying to forget about the money aspect, Tesla has not sent me any information about when I might actually be able to use the full self-driving I paid for, ever. The first email mentioning FSD was February 2024, when they told me I could transfer my FSD package to a new Tesla.
Rather than Tesla, all information I have about FSD is from reading articles or listening to podcasts on the topic. What I know currently is that owners of older Tesla vehicles with hardware 3 (HW3) such as me are unlikely to ever receive a free hardware upgrade, leaving us in a predicament as this excellent article on the situation explains.
During Tesla’s Q3 2024 earnings call, Elon Musk did answer the question of HW3 capability by saying, “There is some chance that HW3 does not achieve a safety level that allows for unsupervised FSD,” and “We will make sure we take care of those who bought FSD on HW3.”
However, I find this hard to believe given all the FSD promises from Elon over the years that have turned out not to be true.
Instead of free upgrades, Tesla’s plan seems to rely on encouraging us to buy a new Tesla and transfer our FSD package, so they can ultimately ignore the problem and never have to offer the hardware upgrade we deserve.
I now take everything Tesla and Elon say about FSD with an Uluru-sized grain of salt, so I am definitely not planning to buy a new Tesla and fall into the same trap again.
My hope is that someone, maybe me, will initiate a class action lawsuit against Tesla to get them to offer us something. I have used the auto lane change feature on my car thousands of times, so perhaps a partial refund and downgrade to Enhanced Autopilot, which includes auto lane change, is the best I could hope for.
Someone in the UK successfully challenged Tesla on their full self-driving claims and was awarded a full refund with interest. I am also aware of an ongoing class action in Australia which includes concerns around phantom braking, inaccurate range and autopilot claims, but the lawsuit relates only to newer vehicles from 2021 equipped with Tesla Vision.
Tim has 20 years experience in the IT industry including 14 years as a network engineer and site reliability engineer at Google Australia. He is an EV and renewable energy enthusiast who is most passionate about helping people understand and adopt these technologies.
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FSD (Supervised) is currently released in the US for hardware 3 and 4. Why do you think it won't be released for hardware 3 in Oz?
3.5?
I presume they will eventually release FSD (Supervised) for HW3 here, but it's stuck on an older version and inferior to the HW4 experience. Tesla/Elon finally admitted during the Q3 2024 earnings call that HW3 won't achieve unsupervised FSD.
As impressive as FSD supervised is, it's not what we were promised all those years ago during the original Model 3 reveal and delivery events. They only started referring to it as "supervised" early last year.
At which point Tesla will upgrade your hardware for free.
Yes, Elon did talk about this during the Q3 2024 earnings call (article updated to include this too) but I personally think the chances of free upgrades actually happening are slim to none.
Oh well, it's already a sunk cost. For me I bought my FSD 2nd-hand thrown in with the vehicle, so I essentially got it free. And yeah, basically didn't use it for anything after I scraped another car trying to use Smart Summon (paid for their bumper repair and have a permanent dent in my side). In fact Dumb Summon is the feature I use more than anything - to get the car in and out of tight parking spaces.
Either way, if I get a free upgrade to AI4/5 I'd be happy. If I get a refund+interest I'd be happy too.
Not keen on any class action though - as everyone knows the only winners of those are the lawyers who pocket the lion's share of the winnings, while actual victims get only a pittance.
The only way I would lose out is if my car gets written off after a crash. So fingers crossed.
So why isn't this article an opinion piece?
Seriously ???.
Kind of hard to be sympathetic to anyone who still owns a Tesla at this point, given the CEO is a fascist responsible for hundreds of thousands of potential deaths in the developing world. It's a shame he has dragged the company down into the gutter, if they would ditch him and the sycophantic board, they could actually rebuild and become a world leading manufacturer again.
Responsible for hundreds of thousands of potential deaths?
Everybody is in a way.
I read the Ukrainian counter offensive was a complete failure because he cut off Starlink at the front when they launched it and they lost communication. So similar to when he did the same when the Ukrainians first sent their drone boats after Russian ships launching Kaliba missiles into Ukrain and the drone boats washed up on the Crimean shore. I believe he denied this tho' ( former?) friends/ associates of his said he said different to them.
Not fair. Back in 2019 Elon was regarded differently. It wasn't until the last few years (especially the last) that his true nature became clear.
I guess Volkswagen, Porsche, etc, are off the table too, right? Toyota has been pretty good a polluting the developing world with their sh*tbox diesels, could be some deaths there too. Both have long, documented histories of poor standards. Long story short, there are no saints anywhere here; there are countless CEOs who could be called out here if deaths were purely your focus vs US politics.
Elon recently received multiple billions from the board as an initial (1/2?) payment ( of the $50+ billion salary package they awarded him) to encourage him to spend more time on Tesla.
I suggest you contact the guys who have just finished the half billion settlement with the Oz gov over the Robodebt thing. Selling something not supplied I suspect would be classed as fraud though not being a lawyer IDK if you claim it will "eventually" be delivered leaves it open for debate.
My favourite part of the '$50 billion' salary package, is that it cost the company $5 billion.
In that same year, Ford and GM spent $5billion, EACH, just on advertising.
Why isn't there any discussion about those companies and the ROI they received for that $5 billion that they spent in comparison to Tesla's ROI?
Also, GM Mary is currently in stock shedding mode...
They definitely
needshould to do something about this.Just ask for a full refund of FSD Tim, plus interest. Under Australian consumer law it's a clear failure to deliver for a paid service within a reasonable time frame. If Tesla won't play ball, take them to small claims court. They'll either refund at that point, or refund under court order, and will be ordered to pay your costs into the bargain.
It's surely a financial liability overhang unrecognised in the share price.
Pointing THAT out will deliver "hater" status also.
Typical Musk - over promising and under delivering.