Tesla begins building Autopilot Hardware 3.0

Demonstrations will be held on April 19.

Tesla has announced hat its upgraded Autopilot Hardware 3.0 technology has entered production.

Powered by chips designed in-house and highly optimized for Tesla's own autonomous algorithms, HW3 is described as a Full Self Driving computer.

"Tesla is making significant progress in the development of its autonomous driving software and hardware, including our FSD computer, which is currently in production and which will enable full-self driving via future over-the-air software updates," the company wrote in a notice to investors.

The HW3 system will be demonstrated at an "autonomy investor day" later this month. Attendees will be able to take test drives and preview functionality that is still under development.

Notably, Tesla recently acknowledged that its "Full Self Driving" capabilities will initially roll out with a requirement that drivers keep their hands on the wheel and eyes on the road. The company expects government regulations to effectively require billions of miles of operation with such restrictions before the software can be proven safe enough for drivers to engage in other tasks while the car drives itself.