Tesla said Wednesday that all vehicles being produced in its factory — including the Model 3 — will have hardware needed for full self-driving capability at a "safety level substantially greater than that of a human driver."

"It will take us some time to complete the validation of the software and get regulatory approval but the important thing is that the foundation is laid" for fully autonomous driving, said Tesla CEO Elon Musk on a call with reporters. Tesla spent a year testing the new hardware, and Musk said the company's goal is to do "a demonstration drive of full autonomy from LA to New York by the end of next year." Musk declined to answer a reporter's question about how the company will finance the cost of the upgrades.

Three cameras mounted behind the windshield provide broad visibility in front of the car, and focused, long-range detection of distant objects. There is a 120 degree fisheye lens for capturing traffic lights, obstacles, and objects at close range. Tesla says it is particularly useful in “urban, low speed maneuvering.” Tesla says it is particularly useful in “urban, low speed maneuvering.” The main camera has a broad range of use. A third narrow camera provides a focused, long-range view of distant features. Tesla says it is good for driving at high-speeds. Source: Tesla Motors

Tesla said the vehicles now being produced will have eight surround cameras that provide 360-degree visibility around the car at up to 250 meters of range. In contrast, cars produced before Wednesday only had one camera. The eight cameras will work with 12 updated ultrasonic sensors to allow for detection of both hard and soft objects at nearly twice the distance of the prior system, the company said.

To aid in seeing in heavy rain, fog, and dust, a forward-facing radar with enhanced processing was added to provide additional data about the world on a redundant wavelength. The computing power will also increase by a factor of 40, making the hardware capable of performing 12 trillion operations per second. "It's basically a supercomputer in a car," Musk said.

Two rear facing cameras monitor blind spots each side of the car, which Tesla says is important for safely changing lanes and merging into traffic. Source: Tesla Motors

"This hardware, combined with Tesla's existing over-the-air update capabilities, will allow the automaker to continue improving its self-driving capabilities with minimal inconvenience for owners," said Karl Brauer, executive publisher for Autotrader and Kelley Blue Book, said in comments sent to CNBC. "It's a big up-front commitment to self-driving technology that other automakers may not be willing to make at this point." However, Michael Harley, senior analyst for Kelley Blue Book, said it is "actually not a challenge to offer a full range of Level 4 autonomous hardware to any new vehicle — this is essentially a collection of cameras, sensors, radars and processors. The most critical piece of the puzzle, which is missing from Tesla's announcement, is the car-to-car communication that ensures full Level 4 autonomous riding is safe for passengers and pedestrians alike." Tesla cars made prior to the introduction of the new hardware will still see improvements based on such things as fleet learning and software updates, but their capability will ultimately be "limited by the fundamental hardware." This development follows a recent update to Tesla's Autopilot system where the technology was tweaked to make greater use of the car's on-board radar, and, among other things, included a warning system that will disable the feature if drivers ignore multiple warnings to keep their hands on the wheel. The Autopilot system has drawn both praise and criticism, especially since its alleged involvement in some high-profile crashes. Tesla has defended the technology, saying it is safe when used as directed.

Two 90 degree “redundant” cameras look forward, Tesla says for cars unexpectedly entering a driver’s lane and for additional safety when entering intersections with limited visibility. Source: Tesla Motors