Chip crunch! Tesla quietly removes steering part from Australian-delivered Tesla Model 3 sedans built in China, preventing future Level 3 autonomy: report

Leading electric vehicle (EV) specialist Tesla wouldn’t be the first automotive brand to ‘decontent’ new vehicles to push past the ongoing global semiconductor shortage, but it didn’t tell buyers - including Australians - about a key change it recently made to Chinese-built Model 3 sedans and Model Y SUVs, according to a new report.

Citing two unnamed Tesla employees and an internal correspondence as its sources, CNBC claims the American company quietly removed one of the two electronic control units (ECUs) included in the steering racks of some Shanghai-sourced Model 3s and Model Ys in Q4 2021.

While the US media outlet says the second ECU was considered redundant – hence it’s removal – it did have a role to play in the future, when Tesla releases its long-promised Level 3 autonomous driving functionality for the Model 3 and Model Y via an over-the-air update.

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Now, without the additional ECU, CNBC suggests tens of thousands of Model 3s and Model Ys already delivered to buyers in Australia, China, the UK, Germany and other parts of Europe don’t have the hardware required to support Tesla’s next generation of so-called Full Self-Driving features.

Assuming Full Self-Driving does see the light of day, it’s not clear if affected Model 3 and Model Y owners will be eligible to have an extra ECU installed in the steering rack for free as part of a service. Either way, the process to go from Level 2 to Level 3 autonomous driving won’t be easy as for them as promised.

“My personal guess is that we’ll achieve Full Self-Driving this year at a safety level significantly greater than a person,” Tesla CEO Elon Musk said on an earnings call on January 26.

“So, the cars in the fleet essentially becoming self-driving via software update, I think, might end up being the biggest increase in asset value of any asset class in history. We shall see.”

But as CNBC reports, the real kicker is Tesla had an internal discussion about whether to notify buyers of the change, ultimately deciding not to as it does not impact the Model 3 and Model Y’s current Level 2 autonomous capabilities – although it does stand in the way of the move to Level 3.

Tesla is yet to publicly comment on this developing story.