diff --git a/Tiltfile b/Tiltfile
index 8d5629e60..88e8064ec 100644
--- a/Tiltfile
+++ b/Tiltfile
@@ -144,7 +144,7 @@ def caph():
 
     # copy things from data directory to .tiltbuild 
     if not os.path.exists('.tiltbuild/installimage.tgz'):
-        local("cp data/hetzner-installimage-v1.0.3.tgz .tiltbuild/installimage.tgz")
+        local("cp data/hetzner-installimage-v1.0.4.tgz .tiltbuild/installimage.tgz")
 
     # Set up a local_resource build of the provider's manager binary.
 
diff --git a/data/hetzner-installimage-v1.0.3.tgz b/data/hetzner-installimage-v1.0.3.tgz
deleted file mode 100644
index b39e7dc6f..000000000
Binary files a/data/hetzner-installimage-v1.0.3.tgz and /dev/null differ
diff --git a/data/hetzner-installimage-v1.0.4.tgz b/data/hetzner-installimage-v1.0.4.tgz
new file mode 100644
index 000000000..65cd8eaba
Binary files /dev/null and b/data/hetzner-installimage-v1.0.4.tgz differ
diff --git a/images/caph/Dockerfile b/images/caph/Dockerfile
index 78607e79a..619ad301c 100644
--- a/images/caph/Dockerfile
+++ b/images/caph/Dockerfile
@@ -25,7 +25,7 @@ RUN --mount=type=cache,target=/root/.cache --mount=type=cache,target=/go/pkg \
 
 FROM --platform=${BUILDPLATFORM} gcr.io/distroless/static:nonroot
 WORKDIR /
-COPY data/hetzner-installimage-v1.0.3.tgz /installimage.tgz
+COPY data/hetzner-installimage-v1.0.4.tgz /installimage.tgz
 COPY --from=build /src/cluster-api-provider-hetzner/manager .
 # Use uid of nonroot user (65532) because kubernetes expects numeric user when applying pod security policies
 USER 65532