Musk Offers Amends for Teslas Lacking the Ability to Self-Drive

Countless Tesla Inc. customers who paid thousands of dollars for autonomous-driving capability lack the necessary hardware in their vehicles, leading Elon Musk to outline options for redress that likely will be costly for the company.

The chief executive officer acknowledged during Tesla’s quarterly earnings call Wednesday that millions of cars were built with computers and cameras that aren’t up to the task of driving without human supervision. The shortcomings apply to an older set of equipment, called Hardware 3, that Tesla installed in vehicles from early 2019 through early 2023.

“I wish it were otherwise, but Hardware 3 simply does ...