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.
Elon Musk
SpaceX to launch military missile tracking satellites through new Space Force contract
SpaceX wins a $178.5M Space Force contract to launch missile tracking satellites starting in 2027.
The U.S. Space Force awarded SpaceX a $178.5 million task order on April 1, 2026 to launch missile tracking satellites for the Space Development Agency. The contract, designated SDA-4, covers two Falcon 9 launches beginning in Q3 2027, one from Cape Canaveral Space Force Station in Florida and one from Vandenberg Space Force Base in California. The satellites, built by Sierra Space, are designed to bolster the nation’s ability to detect and track missile threats from orbit.
The award falls under the National Security Space Launch Phase 3 Lane 1 program, which Space Force uses to move payloads to orbit on faster timelines and at more competitive prices. “Our Lane 1 contract affords us the flexibility to deliver satellites for our customers, like SDA, more easily and faster than ever before to all the orbits our satellites need to reach,” said Col. Matt Flahive, SSC’s system program director for Launch Acquisition, in the official press release.
SpaceX is quietly becoming the U.S. Military’s only reliable rocket
The SDA-4 contract is the latest in a long string of national security wins for SpaceX. As Teslarati reported last month, the Space Force recently shifted a GPS III satellite launch from ULA’s Vulcan rocket to SpaceX’s Falcon 9 after a significant Vulcan booster anomaly grounded ULA’s military missions indefinitely. That move made it four consecutive GPS III satellites transferred to SpaceX after contracts were originally awarded to its competitor.
This didn’t come without a fight and dates back years. SpaceX originally had to sue the Air Force in 2014 for the right to compete for national security launches, at a time when United Launch Alliance held a near monopoly on the market. Since then, the company has steadily displaced ULA as the dominant provider, and last year the Space Force confirmed SpaceX would handle approximately 60 percent of all Phase 3 launches through 2032, worth close to $6 billion.
With missile defense satellites now part of its launch manifest alongside GPS, communications, and reconnaissance payloads, SpaceX is giving hungry investors something to chew on before its imminent IPO.
Elon Musk
Tesla’s Q1 delivery figures show Elon Musk was right
On the surface, the numbers reflect a mature EV market facing competition, softening demand, and the loss of certain incentives. Yet they also quietly validate a prediction Elon Musk has repeated for years: Tesla’s traditional auto business is becoming far less central to the company’s future.
Tesla reported its Q1 delivery figures on Thursday, and the figures — solid but unspectacular — show that CEO Elon Musk was right about what the company’s most important production and division would be.
We are seeing that shift occur in real time.
Tesla delivered 358,023 vehicles in the first quarter of 2026, according to the company’s official report released April 2.
The figure represents modest year-over-year growth of roughly 6 percent from Q1 2025’s 336,681 deliveries but a sharp sequential drop from Q4 2025’s 418,227. Production reached 408,386 vehicles, while energy storage deployments hit 8.8 GWh.
On the surface, the numbers reflect a mature EV market facing competition, softening demand, and the loss of certain incentives. Yet they also quietly validate a prediction Elon Musk has repeated for years: Tesla’s traditional auto business is becoming far less central to the company’s future.
Musk has long argued that vehicles alone will not define Tesla’s value.
Optimus Will Be Tesla’s Big Thing
In September 2025, Musk stated bluntly on X that “~80% of Tesla’s value will be Optimus,” the company’s humanoid robot.
He has described Optimus as potentially “more significant than the vehicle business over time.” Those comments were not abstract futurism. In January 2026, during the Q4 2025 earnings call, Musk announced the end of Model S and X production, framing it as an “honorable discharge,” he called it.
Those are the biggest factors.
~80% of Tesla’s value will be Optimus.
— Elon Musk (@elonmusk) September 1, 2025
The Fremont factory space, once dedicated to those flagship sedans, is being converted into an Optimus manufacturing line, with a long-term target of one million robots per year from that single facility alone.
The Q1 2026 numbers arrive at precisely the moment this strategic pivot is accelerating. Model 3 and Y deliveries totaled 341,893 units, while “other models” (including Cybertruck, Semi, and the final wave of S/X) added 16,130.
Growth is no longer explosive because Tesla is no longer chasing volume at all costs. Instead, the company is reallocating capital and factory floor space toward autonomy, energy storage, and robotics, businesses Musk believes will command far higher margins and enterprise value than incremental car sales.
Delivery Hits and Misses are Becoming Less Important
Wall Street’s pre-release consensus had pegged deliveries near 365,000. Coming in below that estimate might have rattled investors focused solely on automotive metrics. Yet Musk’s thesis has never been about maximizing quarterly vehicle shipments.
Tesla, he has insisted, “has never been valued strictly as a car company.”
The modest Q1 auto performance, paired with the deliberate wind-down of legacy programs and the ramp of Optimus, underscores that point. While EV demand stabilizes, Tesla is building the infrastructure for Robotaxis and humanoid robots that could dwarf today’s car business.
The future is here, and it is happening. It’s funny to think about how quickly Tesla was able to disrupt the traditional automotive business and force many car companies to show their hand. But just as fast as Tesla disrupted that, it is now moving to disrupt its own operation.
Cars, once the only recognizable and widely-known division of Tesla, is now becoming a background effort, slowly being overtaken by the company’s ambitions to dominate AI, autonomy, and robotics for years to come.
Critics may still view the shift as risky or premature. But the Q1 figures, solid but unspectacular in the auto segment, illustrate exactly what Musk has been signaling: the era when Tesla’s valuation rose and fell with every Model Y delivery is ending.
The company’s long-term bet is on AI-driven products that turn vehicles into high-margin robotaxis and factories into robot foundries. Thursday’s delivery report did not just meet the market’s tempered expectations; it proved Elon Musk was right all along.
The car business, once everything, is quietly becoming an important piece of a much larger puzzle.
Investor's Corner
Tesla reports Q1 deliveries, missing expectations slightly
The figure, however, fell short of Wall Street’s consensus estimate of 365,645 units, reflecting ongoing headwinds in the global EV market.
Tesla reported deliveries for the first quarter of 2026 today, missing expectations set by Wall Street analysts slightly as the company aims to have a massive year in terms of sales, along with other projects.
Tesla delivered 358,023 vehicles in the first quarter of 2026, marking a 6.3 percent increase from 336,681 vehicles in Q1 2025.
The figure, however, fell short of Wall Street’s consensus estimate of 365,645 units, reflecting ongoing headwinds in the global EV market. Production reached approximately 362,000 vehicles, with Model 3 and Model Y accounting for the vast majority. The results come as Tesla navigates softening demand, intensifying competition in China and Europe, and the expiration of key U.S. federal tax incentives.
🚨 BREAKING: Tesla delivered 358,023 vehicles in Q1 2026
Tesla also reported record energy deployments of 8.8 GWh
Wall Street had delivery consensus estimates of 365,645 pic.twitter.com/EVNAu5L3UT
— TESLARATI (@Teslarati) April 2, 2026
Energy storage deployments provided a bright spot, hitting a record 8.8 GWh in Q1. This underscores the accelerating momentum in Tesla’s energy segment, which has become a critical growth driver even as automotive volumes stabilize.
Year-over-year, the energy business continues to outpace vehicle sales, with analysts noting strong backlog demand for Megapack systems amid rising grid-scale needs for renewables and AI data centers.
Looking ahead, analysts project full-year 2026 vehicle deliveries in the range of 1.69 million units—a modest 3-5% rise from roughly 1.64 million in 2025.
Growth is expected to accelerate in the second half as production ramps and new incentives emerge in select markets. However, risks remain: persistent high interest rates, price competition from legacy automakers and Chinese EV makers, and potential margin pressure could cap upside.
Tesla has not issued official full-year guidance, but executives have signaled confidence in sequential quarterly improvements driven by cost reductions and refreshed lineups.
By the end of 2026, Tesla plans several major product launches to reignite momentum. The refreshed Model Y, including a new 7-seater variant already rolling out in select markets, is expected to boost family-oriented sales with updated styling, efficiency gains, and interior enhancements.
Autonomous ambitions remain central to Tesla’s mission, and that’s where the vast majority of the attention has been put. Volume production of the Cybercab (Robotaxi) is targeted to begin ramping in 2026, potentially unlocking new revenue streams through unsupervised Full Self-Driving (FSD) deployment.
A next-generation affordable EV platform, possibly under $30,000, is also in advanced planning stages for 2026 or 2027 introduction. On the energy front, the Megapack 3 and larger Megablock systems will drive further deployment scale.
While Q1 highlights transitional challenges in autos, Tesla’s diversified roadmap, spanning refreshed consumer vehicles, commercial trucks, Robotaxis, and explosive energy growth, positions the company for a stronger second half and beyond. Investors will watch Q2 closely for signs of sustained recovery, especially with new vehicles potentially on the horizon.
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Tesla’s Q1 delivery figures show Elon Musk was right
Tesla reports Q1 deliveries, missing expectations slightly
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