Tesla FSD version 10.69.2.3 rolled out shortly after AI Day. The latest update of Tesla’s Full Self Driving software delivers minor bug fixes. Some testers have received v10.69.2.3 and shared their observations with Teslarati.
As previously noted, 10.69.2.3 is a relatively small update that addresses some minor bugs in FSD Beta. As it sometimes goes with software bug fixes, some Beta testers mentioned a new issue in the latest version that appeared to be a step or two backward.
Road Obstacle Detection Issues
A few testers in Tesla’s FSD Beta Program reported experiencing road obstacle detection issues when their vehicles would not register particular objects in their path or directly ahead.
For instance, beta tester Jonathan shared that his vehicle did not recognize or avoid dead animals on the road. Another beta tester experienced similar issues with gates in his community.
“One day coming back from work I decided to see if it can get me close to the proximity of my house. I live in a gated community. The vehicle made the turn into the drive entry of the community which has two swing gates. Vehicle was almost going to go through the closed gates,” FSD Beta user Sean shared with Teslarati. “I had to tap the breaks and override the system to make it stop. It didn’t see the gates as obstacles or road blocks. I have tried this a couple of times during daylight and night time and result is the same.”
After Tesla released v10.69.2.2, a few beta testers observed that their vehicles recognized and avoided construction work sites and similar obstacles on the road.
Left and Right Turns
A couple of beta testers mentioned issues with left and right turns, specifically during intersections. The most prominent issue FSD Tesla drivers raised about turns was their cars’ hesitation during intersections. Testers highlighted that their cars’ hesitation during intersections isn’t really a big issue until they consider the other drivers on the road.
“Hesitates too long at intersections presumably trying to determine if/when it’s safe to proceed. This only matters to me when there are cars behind me. I feel intense pressure to push the car through (and I do). Humans do not have patience to wait on its time-table,” noted Terry, another FSD Beta tester.
FSD Beta user Dr. Rahaman made similar observations. He noted that his Tesla would creep forward after stopping at an intersection on a red light and would take a left or right turn too slowly, sometimes irritating the drivers behind him. Dr. Rahaman specifically observed that his car entered left turn lanes late without a signal. In the past, the Tesla owner has noted that the car’s turn signals sporadically turn off and on at some intersections or turns.
Lane Selection Issues
Tesla FSD v.10.69.2.3 doesn’t appear to address the largest issue multiple testers have pointed out over the past few weeks: lane selection. One beta tester seemed to sum up the sentiments most drivers in the Tesla FSD program have regarding lane selection.
“Lane selection sometimes just plain wrong and dumb. Causes driving task to be harder for itself than it needs to be because it realizes (eventually, usually) it’s in the wrong lane too late and then has to get over which is harder with traffic and unlike a human who can gesture, the car can give no such signals as to its self-made predicament,” the tester commented.
“Also, it sometimes gets into turn lane just late enough that cars behind me assume I’m continuing straight and swoop in behind me and get over immediately causing it to be even harder for my car to get over into that lane now because all slots are occupied and the road is about to end at a light,” he added.
Other Issues
Some other less prominent issues that a few FSD Beta testers have noted are listed below.
1. Lane Positioning – The car hugs the double yellow lines too closely on narrow roads or sticks to the middle of the road when no lines are present.
2. Wide turns – The Tesla car takes wide turns, far from the curb. One tester observed that his car risked hitting the guard rails and other obstacles with its wide turn.
3. Turn Lane Issues – The car still mistakes turn lanes for driving lanes
Some testers still report experiencing phantom braking and jerkiness while taking turns. However, the one observation that seems to stick out among others came from beta tester Neeraj.
“Drives as if everyone is going to follow the rules 100% and is not accommodating or accounting for those who may not be going 100% as they should,” he said about FSD Beta.
FSD Beta still has a ways to go before 100% autonomous version rolls out to the general public. Observations and tests from beta testers help Tesla improve FSD. Elon Musk teased more significant improvements in the next update, 10.69.3. Tesla hopes to release a ‘supervised’ FSD version by the end of the year.
Have you tried out FSD Beta 10.69.2.3 yet? I’d like to hear from you! Contact me at maria@teslarati.com or via Twitter @Writer_01001101.
In a major development that will inevitably strengthen Tesla’s dominant position in the American EV market, Polestar has been effectively banned from selling new vehicles in the United States, starting with the 2027 model year.
The U.S. Department of Commerce denied Polestar authorization under the Connected Vehicle Rule, which prohibits vehicles containing certain connected technologies (Cellular, Wi-Fi, Bluetooth, etc.) linked to China or Russia due to national security risks, including potential data collection on American drivers.
🚨 A Tesla competitor goes down
Polestar will no longer sell new vehicles in the United States starting with the 2027 model year.
The U.S. Department of Commerce denied the brand authorization under the Connected Vehicle Rule, which restricts the sale of cars with software and… pic.twitter.com/TrwnQeoiES
— TESLARATI (@Teslarati) June 25, 2026
Polestar, which is majority-owned by China’s Geely Holding, could not obtain the required exemption despite producing some models domestically.
Polestar confirmed it will sell off any remaining inventory of the Polestar 3 and Polestar 4 models, while continuing service and warranty support for existing customers. No new models or major refreshes will reach U.S. buyers, and the company is pivoting its growth strategy to Europe, where it already generates the vast majority of its sales.
The outcome removes a direct premium EV competitor that had positioned itself as a stylish, performance-oriented alternative to Tesla’s lineup. The Polestar 2 challenged the Model 3, while the Polestar 3 and 4 targeted segments overlapping with the Model Y and upcoming Tesla offerings. Polestar’s U.S. sales had already been sluggish amid intense competition and slower demand, representing just 6 percent of its global volume in the first quarter of 2026.
While Polestar was not on Tesla’s level in the U.S., it still places a dent in the evergrowing field of Tesla competitors in the country, where it has long dominated EV sales.
Tesla faces none of these hurdles. As a U.S.-founded and U.S.-headquartered company with major manufacturing in Fremont, Austin, and Nevada, Tesla’s vehicles are built with compliant domestic and allied supply chains. Its Full Self-Driving technology, over-the-air software updates, and vertically integrated ecosystem were developed entirely in-house without foreign ownership entanglements that trigger national security reviews, at least in the U.S.
Of course, it did face a similar threat in China a few years back:
Elon Musk responds to reports of Tesla ban among China’s military over security concerns
The Connected Vehicle Rule, first advanced under the prior administration and upheld under the current one, is part of a broader U.S. effort to protect the domestic auto industry and critical technology from Chinese influence. High tariffs on Chinese-made EVs and related restrictions have already reshaped the market. Tesla benefits directly: it avoids these barriers while continuing to lead in U.S. EV sales volume, Supercharger network expansion, and energy storage integration.
By clearing Polestar from the new-vehicle playing field, the policy reduces competitive pressure in the premium and performance EV segments where Tesla has invested billions. American consumers seeking cutting-edge electric vehicles now have one fewer option tied to foreign adversaries — and one clearer path to the market leader that has driven the EV transition from the start.
For Tesla, this is more than regulatory relief. It is a strategic tailwind that reinforces its position as America’s premier EV innovator at a time when domestic manufacturing and technological independence matter most.
Tesla Cybercab stands to gain from new rules that the Trump Administration is aiming to enforce on autonomous vehicles. On Thursday, NHTSA, under the Trump Administration’s U.S. Department of Transportation, commenced rulemaking on the Federal Motor Vehicle Safety Standards (FMVSS).
This effort aims to eliminate the mandate for manual brake pedals in vehicles that are designed to be driven exclusively by automated driving systems. This would impact the Tesla Cybercab, which the company has stated would operate without a steering wheel or pedals.
Tesla Cybercab launch is imminent after latest sighting at Giga Texas
The Trump Administration is looking to revise FMVSS No. 135, which requires standard braking systems on light-duty vehicles.
Currently, the regulation requires light-duty cars to use traditional manual braking systems that allow operators to slow the vehicle. With the advent of self-driving in the U.S., these regulations need updating, and these are the changes that could come to FMVSS No. 135:
- Removes requirements for hand- or foot-operated brake controls for vehicles designed never to be operated by a human. Existing rules still apply to AVs that retain manual controls.
- All subject vehicles must still meet the same stopping distance performance criteria via alternative testing procedures.
- While this update ensures AVs can physically stop when commanded, NHTSA is separately developing safety performance requirements for AVs in real-world driving scenarios.
- NHTSA will continue to use its broad defect enforcement authority to investigate unsafe ADS behavior and oversee recalls.
As autonomy becomes a greater part of passenger travel, these types of rule adjustments will be more than reasonable. It will give manufacturers the ability to self-certify their vehicles and avoid any red tape that could ultimately delay the deployment of these vehicles.
Administrators are also incredibly excited about the opportunity to play a role in the advancement of self-driving vehicles.
“We are at the cusp of the greatest technological revolution in vehicle technology since the innovation of the Model T,” NHTSA Administrator Jonathan Morrison said. “If we want America to lead the way, we have to reimagine our regulatory framework. That’s why under Secretary Sean Duffy’s AV Framework, NHTSA is tearing down pointless barriers to innovative designs while strengthening the fundamental safety requirements that matter and holding AV developers accountable for safe performance.”
The Cybercab entered mass production at Gigafactory Texas in April. Tesla ultimately plans to push the vehicle into its Robotaxi fleet, potentially when frameworks like these are established.
Tesla plans to boost production at its Gigafactory Berlin plant in Germany following a sharp rebound in sales and demand in Europe after a softer 2025.
The plans put Tesla in a better position to compete with strengthening companies in Europe and potentially other markets; demand indicators show Tesla is much better off than in 2025.
Last year was a tough year for Tesla in terms of overall demand in Europe. The company produced over 200,000 vehicles at the German plant last year, a soft figure compared to the 375,000 vehicles Tesla lists as its current capacity at the factory.
🚨 Tesla said this morning it will ramp up production at Gigafactory Berlin to a volume of 7,500 vehicles per week.
This is a 20 percent boost in production. Tesla will hire 1,000 new employees to help with the increase.$TSLA pic.twitter.com/kravKfRO5n
— TESLARATI (@Teslarati) June 25, 2026
Tesla’s overall European sales dropped significantly last year due to a variety of factors. However, sales are rebounding, and demand is strong once again, and only getting stronger. Tesla is now planning to bump production of Model Y vehicles at Giga Berlin upward by about 20 percent. It will also bring 1,000 new jobs to the plant.
Tesla confirmed the details of its planned production expansion in Germany this morning. It is a strategy to keep up with strengthening demand.
In Q1, Tesla saw a record 61,000 vehicles produced at Giga Berlin. European registrations rebounded sharply, with Model Y seeing 117 percent increases in March 2026 compared to last year. Germany alone saw stark increases, with a quadrupling in registrations to 9,252 units.
This trend continued in other key European markets, including France, Denmark and Sweden. Tesla registrations were up over 46 percent in some of these markets, and Model Y continued its trend as a top BEV in the market.
Demand has been recovering strongly in 2026, giving Tesla a reason to expand production efforts at the factory. These increases signal management’s confidence in sustained or growing European pull for Berlin-built vehicles.
One of Tesla’s biggest threats just got banned in the U.S.
Tesla Cybercab stands to gain from new Trump autonomy rules
