diff --git a/cloud/terraform/pods.go b/cloud/terraform/pods.go
index a5ee6b8111d7..63748e29c868 100644
--- a/cloud/terraform/pods.go
+++ b/cloud/terraform/pods.go
@@ -32,7 +32,7 @@ import (
 	"sigs.k8s.io/cluster-api/cloud/terraform/config"
 )
 
-var apiServerImage = "gcr.io/k8s-cluster-api/cluster-apiserver:0.0.1"
+var apiServerImage = "gcr.io/k8s-cluster-api/cluster-apiserver:0.0.2"
 var controllerManagerImage = "gcr.io/k8s-cluster-api/controller-manager:0.0.1"
 var machineControllerImage = "gcr.io/karangoel-gke-1/terraform-machine-controller:0.0.1-dev"
 
@@ -197,4 +197,4 @@ func deployConfig(manifest []byte) error {
 	} else {
 		return fmt.Errorf("couldn't create pod: %v, output: %s", err, string(out))
 	}
-}
\ No newline at end of file
+}