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.
News
Tesla VP explains latest updates in trade secret theft case
Tesla reportedly caught Matthews copying the tech into machines that were sold to competitors, claiming they lied about doing so for three years, and continued to ship it. That is when Tesla chose to sue Matthews in July 2024 in Federal court, demanding over $1 billion in damages due to trade secret theft.
Tesla Vice President Bonne Eggleston explained the latest updates in a trade secret theft case the company has against a former manufacturing equipment supplier, Matthews International.
Back in 2024, Tesla had filed a lawsuit against Matthews International, alleging that the firm stole trade secrets about battery manufacturing and shared those details with some of Tesla’s competitors.
Early last year, a U.S. District Court Judge denied Tesla’s request to block Matthews International from selling its dry battery electrode (DBE) technology across the world. The judge, Edward Davila, said that the patent for the tech was due to Matthews’ “extensive research and development.”
The two companies’ relationship began back in 2019, as Tesla hired Matthews to help build the equipment for its 4680 battery cell. Tesla shared confidential software, designs, and know-how under strict secrecy rules.
Fast forward a few years, and Tesla reportedly caught Matthews copying the tech into machines that were sold to competitors, claiming they lied about doing so for three years, and continued to ship it. That is when Tesla chose to sue Matthews in July 2024 in Federal court, demanding over $1 billion in damages due to trade secret theft.
Now, the latest twist, as this month, a Judge issued a permanent injunction—a court order banning Matthews from using certain stolen Tesla parts or designs in their machines. Matthews is also officially “liable” for damages. The exact amount would still to be calculated later.
Bonne Eggleston, a VP for Tesla, said on X today that Matthews is a supplier who “exploited customer IP through theft or deception,” and has no place in Tesla’s ecosystem:
Buyer beware: Matthews International stole Tesla’s DBE technology and is now subject to an injunction and liable for damages.
During our work with Matthews, we caught them red-handed copying our technology—including proprietary software and sensitive mechanical designs—into… https://t.co/Toc8ilakeM
— Bonne Eggleston (@BonneEggleston) March 10, 2026
Tesla calls this a big win and warns other companies: “Buyer beware—don’t buy from thieves.”
Matthews hit back with a press release claiming victory. They say an arbitrator ruled they can keep selling their own DBE equipment to anyone and rejected Tesla’s request for a total sales ban. They call Tesla’s claims “nonsense” and insist their 20-year-old tech is independent. Both sides are spinning the same narrow ruling: Matthews can sell their version, but they’re blocked from using Tesla’s specific secrets.
What are Tesla’s Current Legal Options
The case isn’t over—it’s moving to the damages phase. Tesla can:
- Push forward in court or arbitration to calculate and collect huge financial penalties (potentially $1 billion+ if willful theft is proven).
- Enforce the permanent injunction with contempt charges, fines, or even jail time if Matthews violates it.
- Challenge Matthews’ new patents that allegedly copy Tesla’s work, asking courts to invalidate them or add Tesla as co-inventor.
- Seek extra damages, lawyer fees, and possibly punitive awards under the federal Defend Trade Secrets Act and California law.
Tesla could also refer evidence to federal prosecutors for possible criminal trade-secret charges (rare but serious). Settlement is always possible, but Tesla’s fiery public response suggests they want full accountability.
This isn’t just corporate drama. It shows why trade secrets matter even when Tesla open-sources some patents, confidential know-how shared in trust must stay protected. For the EV industry, it’s a reminder: steal from your biggest customer, and you risk losing everything.
News
Tesla Cybercab includes this small but significant feature
The Cybercab is Tesla’s big plan to introduce fully autonomous ride-sharing in a seamless fashion. In fact, the Full Self-Driving suite was geared toward alleviating the need to manually drive vehicles.
Tesla Cybercab manufacturing is strikingly close, as the company is still aiming for an April start date. But small and significant features are still being identified for the first time as production units appear all over the country for testing and for regulatory events, like one yesterday in Washington, D.C.
The Cybercab is Tesla’s big plan to introduce fully autonomous ride-sharing in a seamless fashion. In fact, the Full Self-Driving suite was geared toward alleviating the need to manually drive vehicles.
This was for everyone, including the disabled, who are widely reliant on ride-sharing platforms, family members, and medical shuttles for transportation of any kind. Cybercab aims to change that, and Tesla evidently put a focus on those riders while developing the vehicle, evident in a small but significant feature revealed during its appearance in the Nation’s Capital.
Tesla Cybercab display highlights interior wizardry in the small two-seater
Tesla has implemented Braille within the Cybercab to make it easier for blind passengers to utilize the vehicle. On both the ‘Stop/Hazard Lights’ button and the Door Releases, Tesla has placed Braille so that blind passengers can navigate their way through the vehicle:
The hazard lights button will be used as an emergency stop. Smart pic.twitter.com/vkYBioqmKm
— Whole Mars Catalog (@wholemars) March 10, 2026
We have braille on the interior door releases as well
— Eric (@EricETesla) March 11, 2026
This is a great addition to the Cybercab, especially as Full Self-Driving has been partially pointed at as a solution for those with disabilities that would keep them from driving themselves from place to place.
It truly is a great addition and just another way that Tesla is showing they are making this massive product inclusive for everyone out there, including those who have not been able to drive due to not having vision.
The Cybercab is set to enter mass production sometime in April, and it will be responsible for launching Tesla’s massive plans for an autonomous ride-sharing program.
Elon Musk
Tesla and xAI team up on massive new project
It is the latest move by a Musk company to automate, streamline, and reduce the manual, monotonous, and tedious work currently performed by humans through AI and robotics development. Digital Optimus will be capable of processing and actioning the past five seconds of a real-time computer screen video and keyboard and mouse actions.
Elon Musk teased a massive new project, to be developed jointly by Tesla and xAI, called “Digital Optimus” or “Macrohard,” the first development under Tesla’s investment agreement with xAI.
Musk announced on X that Digital Optimus will “be capable of emulating the function of entire companies.”
Macrohard or Digital Optimus is a joint xAI-Tesla project, coming as part of Tesla’s investment agreement with xAI.
Grok is the master conductor/navigator with deep understanding of the world to direct digital Optimus, which is processing and actioning the past 5 secs of…
— Elon Musk (@elonmusk) March 11, 2026
It is the latest move by a Musk company to automate, streamline, and reduce the manual, monotonous, and tedious work currently performed by humans through AI and robotics development. Digital Optimus will be capable of processing and actioning the past five seconds of a real-time computer screen video and keyboard and mouse actions.
Essentially, it will be an AI version of a desk worker in many capacities, including accounting, HR tasks, and others.
Musk said:
“Grok is the master conductor/navigator with deep understanding of the world to direct digital Optimus, which is processing and actioning the past 5 secs of real-time computer screen video and keyboard/mouse actions. Grok is like a much more advanced and sophisticated version of turn-by-turn navigation software. You can think of it as Digital Optimus AI being System 1 (instinctive part of the mind) and Grok being System 2. (thinking part of the mind).”
Its key applications would be used for enterprise automation, simulating entire companies, high-volume repetitive tasks, and potentially, future hybrid use with the Optimus robot, which would handle physical tasks, while Digital Optimus would handle the clerical work.
The creation of a digital AI suite like Digital Optimus would help companies save time and money, as well as become more efficient in their operations through massive scalability. However, there will undoubtedly be concerns from people who are skeptical of a fully-integrated AI workhorse like this one.
From an energy consumption perspective and just a general concern for the human workforce, these types of AI projects are polarizing in nature.
However, Digital Optimus would be a great digital counterpart to Tesla’s physical Optimus robot, as it would be a hyper-efficient addition to any company that is looking for more production for less cost.
Musk maintains that there is no other company on Earth that will be able to do this.
Tesla VP explains latest updates in trade secret theft case
Tesla Cybercab includes this small but significant feature
