TechCrunch Mobility: Elon’s admission

TechCrunch Desktop Logo TechCrunch Mobile Logo LatestStartupsVentureAppleSecurityAIAppsDisrupt 2026 EventsPodcastsNewsletters SearchSubmit Site Search Toggle Mega Menu Toggle Topics Latest AI Amazon Apps Biotech & Health Climate Cloud Computing Commerce Crypto Enterprise EVs Fintech Fundraising Gadgets Gaming Google Government & Policy Hardware Instagram Layoffs Media & Entertainment Meta Microsoft Privacy Robotics Security Social Space Startups TikTok Transportation Venture More from TechCrunch Staff Events Startup Battlefield StrictlyVC Newsletters Podcasts Videos Partner Content TechCrunch Brand Studio Contact Us Image Credits:Arda Kucukkaya/Anadolu / Transportation TechCrunch Mobility: Elon’s admission Kirsten Korosec 9:03 AM PDT · April 26, 2026 Welcome back to TechCrunch Mobility — your central hub for news and insights on the future of transportation. To get this in your inbox, sign up here for free — just click TechCrunch Mobility! Tesla earnings came and went, and much of it fell into the “we expected this” category.

Investors seemed surprised by the $1.4 billion in free cash flow, which gave shares a brief bump, and revenue met or slightly exceeded expectations, depending on which batch of analysts you reviewed. The earnings call, however, did deliver one eyebrow-raising moment that prompted readers (including some ex-Tesla engineers and other founders in the industry) to reach out to me with some schadenfreude-tinted prose. CEO Elon Musk admitted that millions of Tesla owners will need hardware upgrades to run a future, more capable version of its Full Self-Driving software that doesn’t require human supervision.

There are financial and legal implications for Tesla. As senior reporter Sean O’Kane wrote, Tesla owners with Hardware 3 cars have spent years bugging the company and Musk for a straight answer about whether they would be able to run this advanced version of Full Self-Driving — which, it should be noted, Tesla has not yet released or even proven it is capable of releasing. Tesla sold these Hardware 3 cars between 2019 and 2023.

Now, here is the kicker and it made me guffaw. Musk said the company would need to physically upgrade each of these vehicles, a feat that would require Tesla to set up microfactories in several major cities to service potentially millions of vehicles. Yes, you heard correctly.

This is not going to be cheap, and it could be one of the line items in Tesla’s capital expenditures budget, which it expanded to a whopping $25 billion this year. A little bird Image Credits:Bryce Durbin Senior reporter Sean O’Kane obtained (and verified) an internal memo sent by Redwood Materials founder and CEO JB Straubel that announced layoffs and a restructuring. (Thanks to the little bird who shared it.) Straubel is a former CTO of Tesla. var playerInstance_jwplayer_6a7e062357555 = jwplayer( "jwplayer_6a7e062357555" ); playerInstance_jwplayer_6a7e062357555.setup(); The company laid off around 135 employees, or roughly 10% of its workforce, as it restructures to better accommodate its growing energy storage business. O’Kane later learned several executives have also recently left.

Chief operating officer Chris Lister is retiring, and at least three other VPs have left in recent months, with the company telling TechCrunch there has been a focus on reducing layers of management. Last week, I shared that a new autonomous hauler startup (think a cabless autonomous big rig) backed by Eclipse was about to break cover and announce a seed round, thanks to a little bird. Welp, it happened just days later.