News
Tesla FSD Beta 10.13’s improvements to be (especially) evident for non-CA users
Elon Musk recently provided some updates on the wide rollout of FSD Beta 10.13. The latest iteration of the company’s advanced driver-assist system began its initial release earlier this month, but its wide release has not been initiated yet.
In a recent post on Twitter, Elon Musk admitted that while Tesla is working extremely hard on FSD Beta 10.13, the system itself is not ready for wide release just yet. He estimated that FSD Beta 10.13’s wide release would likely be a week or so away, but when it does, drivers outside California will experience some very notable improvements.
As noted by the Tesla CEO, users “outside of California will notice improvements the most.” This is an interesting comment, especially considering that Musk has admitted in the past that FSD Beta “seems to work better in California” than in other areas such as Rhode Island. Musk admitted to this last year, noting that FSD Beta has been overfitted to the Bay Area.
As noted in a Benzinga report, overfitting in statistics suggests that a model relates to a specific set of data points far too closely, which may not translate well with different data points. In the case of FSD Beta, this could result in the advanced driver assist system working very well in areas like San Francisco but not as well in other areas of the United States.
Release notes of FSD Beta 10.13 leaked earlier this month have revealed that the update includes a number of key performance improvements.
Following are the partial release notes of FSD Beta 10.13 that have been shared thus far:
- Improved decision making for unprotected left turns using better estimation of ego’s interaction with other objects through the maneuver.
- Improved stopping pose while yielding for crossing objects at “Chuck Cook style” unprotected left turns by utilizing the median safety regions.
- Made speed profile more comfortable when creeping for visibility, to allow for smoother stops when protecting for potentially occluded objects.
- Enabled creeping for visibility at any intersection where objects might cross ego’s path, regardless of presence of traffic controls.
- Improved lane position error by 5% and lane recall by 12%…
- Improved lane position error of crossing and merging lanes by 22% by adding long-range skip connections and a more powerful trunk to the network architecture.
- Improved pedestrian and bicyclist velocity error by 17%, especially when ego is making a turn, by improving the onboard trajectory estimation used as input to the neural network.
- Improved animal detection recall by 34% and decreased false positives by 8% by doubling the size of the auto-labeled training set.
- Improved detection recall of far away crossing vehicles by 4% by tuning the loss function used during training and improving label quality.
- Improved the “is parked” attribute for vehicles by 5% by adding 20% more examples to the training set.
- Upgraded the occupancy network to detect dynamic objects and improved performance by adding a video module, tuning the loss function, and adding 37k new clips to the training set.
- Reduced false slowdowns around crosswalks by better classification of pedestrians and bicyclists as not intending to interact with ego.
- Reduced false lane changes for cones or blockages by preferring gentle offsetting in-lane where appropriate.
- Improved in-lane positioning on wide residential roads.
- Improved object future path prediction in scenarios with high yaw rate.
- Improved speed limit sign accuracy on digital speed limits by 29%, on signs with difficult relevance by 23%, on 3-digit speeds by 39%, and on speed limit end signs by 62%. Neural network was trained with 84% more examples in the training set and with architectural changes which allocated more compute in the network head.
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SpaceX’s massive investment in AI will make it a big winner, Argus Research said after the company’s successful earnings call last week.
The firm also upgraded shares to a Buy from Hold and set a $160 price target.
SpaceX (NASDAQ: SPCX) is currently recovering from its heavy AI infrastructure investments, as it spent nearly $16 billion in Q2 alone. The company did this primarily by monetizing high-demand GPU compute capacity at a much faster pace than traditional data center economics would suggest.
Company CFO Bret Johnsen said that SpaceX would be able to pay back anything on new deployments within a year.
There are plenty of ways the company can do this:
Leasing excess compute capacity through contracts
SpaceX has already built Colossus and Colossus II, largely for its own model training. However, much of that capacity is already rented out to third parties. It already has major deals with Anthropic, Google, and Reflection AI. These partnerships are adding billions per month to SpaceX’s spreadsheet.
High utilization driven by industry-wide scarcity
The demand for advanced AI training and inference capacity continues to exceed what is available for use. SpaceX can fill new racks quickly after they come online, so the capital deployed converts into revenue with minimal idle time.
Additionally, management and outside observers have described the new compute capital as behaving more like a cost-of-goods-sold than traditional multi-year capex, especially because of this rapid monetization pattern.
Capacity has already scaled from ~0.4 GW a year to 1.4 GW annually by the end of Q2. There are targets of more than 2 GW by year-end.
High incremental margins on the rental business once capacity is online
GPU cloud providers often operate at strong gross margins. SpaceX can monetize capacity that was already partially built or can be added efficiently. This means that incremental EBITDA margins on the rental revenue are usually high. This accelerates cash recovery relative to the gross capital outlay.
Parallel monetization of its own AI software and applications
Beyond pure infrastructure rental, SpaceX also generates revenue from Grok through subscriptions and usage, from X through ads, data, and other related services, enterprise APIs, and the planned integration of the Cursor coding tools acquisition.
These application layers ride on the same compute infrastructure and provide additional high-margin streams that could offset build-out costs. AI-segment revenue overall rose sharply to about $2.6 billion in Q2, according to Motley Fool. This was driven primarily by the infrastructure contracts, but the software side is also partially responsible.
Efficient, large-scale deployment and vertical integration advantages
SpaceX has emphasized the rapid construction of power and cooling infrastructure and favorable cost-per-megawatt economics relative to industry benchmarks in some disclosures.
Combined with its ability to scale capacity aggressively and the fact that many contracts start generating revenue within months of capacity coming online, the effective payback compresses dramatically compared with more conventional multi-year data-center projects.
SpaceX’s dominant near-term recovery path will turn the AI clusters into a hyperscale-style compute rental business for other leading AI companies while still using a portion for internal models.
Tesla headlights have caused a recall of over 20,000 of the company’s two most popular vehicles, the Model 3 and Model Y, due to the low-beam bulb exceeding the maximum allowed intensity according to federal standards.
Tesla initiated the recall with the National Highway Traffic Safety Administration (NHTSA) this morning, stating that the low-beam output “exceeds the maximum allowed intensity in the outer upper-right and outer upper-left areas of the 10U and 90U zone, as prescribed in FMVSS No. 108.”
Tesla sourced the impacted headlights from Marelli Automotive Lighting, a Mexico-based company. The recall impacts 2020-2023 Model Y vehicles and 2017-2023 Model 3 vehicles. It is estimated that every VIN in this recall is impacted by the defect.
🚨 Tesla is recalling 20,349 2020-23 Model Y vehicles and 2017-23 Model 3 vehicles due to an excessively bright headlamp low beam.
Currently, there is no remedy plan in place, as it is still being developed. pic.twitter.com/y34cIO2U0B
— TESLARATI (@Teslarati) August 11, 2026
Typically, Tesla would remedy recalls of this nature through an Over-the-Air software update, which has been a major focus of criticism by the company and its supporters because the NHTSA still refers to it as a “recall,” even though it requires no action by the vehicle owner. The fix is shipped over the internet and downloaded to the car.
However, there appears to be a potentially different solution for this problem. Tesla has not developed a remedy for this issue, so it could potentially be on the way. The big issue appears to be the fact that these recalled lamps are out of production, and this is an old body style for both vehicles. The headlights and front-end designs are completely different.
Tesla switched to another supplier when the affected headlight design was discontinued. It plans to begin notifying owners of their remedy options by September 15.
Tesla filed a petition protesting the recall to fix the vehicles’ headlight issue, but the NHTSA denied it. Now, Tesla will come up with a solution to fix it.
Elon Musk
Another Tesla SpaceX merger prediction by ARK Invest has Elon Musk talking
Elon Musk again denies a Tesla China split as new SpaceX merger speculation resurfaces quickly.
Elon Musk restated that Tesla has no plans to separate its China business from the rest of the company, responding to a new round of merger speculation from ARK Invest.
On the firm’s “Brainstorm” podcast, Cathie Wood’s team, including chief futurist Brett Winton and research director Nick Grous, argued a Tesla and SpaceX combination remains likely, with an announcement possible before the end of the year even if the deal itself would not close that quickly. Winton called Tesla’s Shanghai operations a “small ish wrinkle” for a merger rather than a real obstacle, since SpaceX’s national security work with the U.S. government sits uneasily next to Tesla’s manufacturing base in China.
Musk pushed back on the framing directly. “China is awesome. I strongly encourage people to visit,” he wrote on X. He also repeated language he first used in late July, when the Wall Street Journal reported that Tesla executives had been told to prepare for a possible spinoff, sale, or closure of the China business ahead of a SpaceX tie up. Musk called that report “absurdly fake news” at the time, adding that a separation had “never even come up in a discussion ever,” a line he echoed again this week.
The repeated denial has not settled the underlying question, because Shanghai’s role in Tesla’s business is exactly what makes a merger complicated. Gigafactory Shanghai still ships more than half of Tesla’s global deliveries and functions as the company’s main export hub for Europe and Asia. Teslarati previously reported on Musk’s initial denial, and the merger conversation itself has been building since SpaceX’s IPO gave it public shares to use as acquisition currency.
Wedbush’s Dan Ives has pegged the odds of a Tesla SpaceX merger at 80 to 90 percent by early 2027, and ARK’s prediction of a year end announcement adds another data point to that timeline, even as Musk keeps rejecting the specific mechanics reporters have described. Neither position rules out the other. Musk can deny a China spinoff was ever discussed while analysts still expect some form of combination to move forward, since ARK and Ives are both describing convergence at the corporate level, not necessarily the internal restructuring the Journal described in July.
For now, Tesla’s China business remains intact, and Musk’s comments this week make clear he has no interest in publicly walking that position back, no matter how often the merger question resurfaces.
SpaceX AI investment gamble will make it a big winner, firm says
Tesla headlights cause recall of over 20,000 Model 3 and Model Y
