It has been several weeks since Tesla kicked off the roll-out of its latest FSD Beta update, and a few Beta testers shared their thoughts on v10.69.2. FSD Beta testers told Teslarati that v10.69.2 made noticeable improvements to FSD, but a few issues have lingered from 10.69.1.
Tesla FSD Beta 10.69.2 Reviews
After talking to quite a few FSD Beta testers about 10.69.1, a pattern started to emerge. Testers mentioned similar issues repeatedly. The top three mentioned by testers were phantom braking, issues with turns, and speed limit recognition.
Lane selection issues seemed to be a prevalent one in FSD Beta 10.69.2. Multiple FSD Beta testers mentioned that their Tesla would take the turn lane on the road even if they intended to go straight.
“A major issue that I’ve had with this release has to do with lane selection. I find that sometimes, it’s going into an inappropriate lane. And sometimes it’s confused which lane to choose and bunks between a couple of lanes,” noted Dr. Sultan Rahaman, M.D.
“On one occasion, it was moving from the right lane into a right-turn-only lane. A lane that was going into a plaza that was just a right only. But it was driving down that lane at normal speed as if it believed that this lane was going straight through, and it was not, it was just a right turn lane. So I had to disengage because it seemed like it was identifying that right turn lane as just a regular lane going straight,” said Dr. Rahaman.
Long-time Tesla FSD Beta tester Les also experienced issues with lane selection and turns with v10.69.2.
“After multiple test loops and drives, there’s really just one main problem remaining for me at this point on 10.69.2, it’s significant, and that is lane selection,” noted Les.
Les also pointed out two other issues with FSD Beta 10.69.2: multilane turns and opposing turns in close succession. He noted that midterm, his car crosses lanes on 50% of attempts.
Les also stated that his car was successful 50% of the time when taking succeeding turns in opposite directions. “If I have a right turn followed by a left (or vice versa), within a space of a half a block or less, the car at this point fails to get over in time or oddly moves in the opposite direction,” he noted.
Dr. Rahaman also mentioned some issues with turns. He noted seeing improvements with left turns, but he also highlighted that his vehicle would perform left turns a bit aggressively.
“There’s another left turn, however, that’s a simple left turn from just crossing two lanes of traffic into my community—which is an unprotected left turn. I don’t like how it does that. I find that it gets very close to the incoming traffic, and at one point, it seems like it was just hesitating. I think I had to disengage because it seemed like it was moving forward, and traffic was coming,” Dr. Rahaman noted.
Tesla FSD Beta 10.69.2.2 Reviews
Tesla FSD Beta 10.69.2.2 is currently rolling out to more drivers. Plans are underway to roll out FSD Beta 10.69.2.3 shortly after AI Day 2 next week.
Les told Teslarati that there wasn’t any notable changes between 10.69.2, though there were still issues with lane selection. “If this lane selection problem can be solved, it will feel like a good step improvement for me,” he said.
Beta tester Neeraj noted that FSD maintains the posted speed limit even during inclement weather, like while it’s raining, and at night or on curvy roads. He noted that it gets a little unnerving when FSD does not slow down during those appropriate times. Neeraj also noted that his vehicle took long to turn in areas with no traffic lights.
Beta tester Howard also mentioned having trouble with turns since 10.69.2. “Turns at lights and stop signs way, way worse than 69.0!!!! Unusable in my area. Two times it almost caused an accident, once by stuttering and once by entering the opposing lane! Both times there was light traffic, 90-degree turn, good center, and fog lines, two lane road intersection another two lane road,” Howard told Teslarati.
FSD Beta 10.69.2 and 10.69.2.2 Verdict
Overall, testers seem impressed with v10.69 updates thus far. Most of the testers who spoke with Teslarati highlighted that v10.69 significantly improved FSD Beta. A lot of the beta testers stated that they drive more confidently through residential streets after FSD Beta 10.69.
However, a few did note that FSD might not be ready for a wider release by the end of the year. The main reason they believe FSD Beta isn’t ready for more drivers is because it still needs to be well-monitored.
“I still have to be cautious though. I would not want it in the hands of individuals who will not be alert and ready to take control at a moment’s notice,” one beta tester noted.
Have you tried out FSD Beta 10.69.2.2? I’d like to hear from you! Contact me at maria@teslarati.com or via Twitter @Writer_01001101.
Elon Musk
Tesla Terafab set for launch: Inside the $20B AI chip factory that will reshape the auto industry
Tesla set to launch “Terafab Project: A vertically integrated chip fabrication effort combining logic processing, memory, and advanced packaging.
Tesla is making one of the boldest bets in its history. On March 14, Elon Musk posted on X that the “Terafab Project launches in 7 days,” pointing to March 21, 2026 as the start date for what he has described as a vertically integrated chip fabrication effort combining logic processing, memory, and advanced packaging.
Tesla first confirmed Terafab on its January 28, 2026 earnings call, where Musk told investors the company needs to build a chip fabrication facility to avoid a supply constraint projected to materialize within three to four years. But the seeds were planted even earlier. At Tesla’s annual general meeting last year, Musk warned that even in the best-case scenario for chip production from their suppliers, it still wouldn’t be enough, and declared that building a “gigantic chip fab” simply had to be done.
While there has been no official announcement on where Tesla plans to break ground on the massive Terafab, all signs point to the North Campus of Giga Texas in Austin.
Months of speculation has surrounded Tesla’s North Campus expansion at Giga Texas, where drone footage captured by observer Joe Tegtmeyer revealed massive construction site preparation just north of the existing factory on a scale that rivals the original Giga Texas footprint itself.
Samsung’s Tesla AI5/AI6 chip factory to start key equipment tests in March: report
The project is projected to produce 100–200 billion AI and memory chips annually, targeting 100,000 wafer starts per month, at an estimated cost of $20 billion. Tesla is targeting 2-nanometre process technology and anticipated to be the most advanced node currently in commercial production. Dubbed the Tesla AI5 chip, the chip will pack 40x–50x more compute performance and 9x more memory than AI4, and will be among the first products Terafab factory is set to produce. This highly optimized, and massively powerful inference chip is designed to make full self-driving (FSD) and Tesla’s Optimus robots faster, safer, and with full autonomy.
(Credit: Tesla)
This is where Terafab becomes a genuine game-changer. If Tesla successfully builds a 2nm chip fab at scale, it becomes one of only a handful of entities that’s capable of producing AI silicon in-house, with competitive implications that extend far beyond Tesla’s own vehicles, and potentially positioning Tesla as a chip supplier or licensor to other industries.
Credit: @serobinsonjr/X
The next-gen Tesla AI chips will power advancements in Full Self-Driving software, the Cybercab Robotaxi program, and the Optimus humanoid robot line. Musk’s projections for Optimus require chip volumes that no existing external supplier can commit to on Tesla’s timeline.Competitors like Waymo and GM’s Cruise remain dependent on third-party silicon, leaving them exposed to the same supply chain vulnerabilities Tesla is now working to eliminate entirely.
The Terafab launch this week may not mean a factory opens its doors overnight, but it signals Tesla is serious about owning the entire AI stack, from software to silicon.
Elon Musk
What is Digital Optimus? The new Tesla and xAI project explained
At its core, Digital Optimus operates through a dual-process architecture inspired by human cognition.
Tesla and xAI announced their groundbreaking joint project, Digital Optimus, also nicknamed “Macrohard” in a humorous jab at Microsoft, earlier this week.
This software-based AI agent is designed to automate complex office workflows by observing and replicating human interactions with computers. As the first major outcome of Tesla’s $2 billion investment in xAI, it represents a powerful fusion of hardware efficiency and advanced reasoning.
At its core, Digital Optimus operates through a dual-process architecture inspired by human cognition.
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
Tesla’s specialized AI acts as “System 1”—the fast, instinctive executor—processing the past five seconds of real-time computer screen video along with keyboard and mouse actions to perform immediate tasks.
xAI’s Grok model serves as “System 2,” the strategic “master conductor” or navigator, providing high-level reasoning, world understanding, and directional oversight, much like an advanced turn-by-turn navigation system.
When combined, the two can create a powerful AI-based assistant that can complete everything from accounting work to HR tasks.
Will Tesla join the fold? Predicting a triple merger with SpaceX and xAI
The system runs primarily on Tesla’s low-cost AI4 inference chip, minimizing expensive Nvidia resources from xAI for competitive, real-time performance.
Elon Musk described it as “the only real-time smart AI system” capable, in principle, of emulating the functions of entire companies, handling everything from accounting and HR to repetitive digital operations.
Timelines point to swift deployment. Announced just days ago, Musk expects Digital Optimus to be ready for user experience within about six months, targeting rollout around September 2026.
It will integrate into all AI4-equipped Tesla vehicles, enabling parked cars to handle office work during downtime. Millions of dedicated units are also planned for deployment at Supercharger stations, tapping into roughly 7 gigawatts of available power.
Oh and it works in all AI4-equipped cars, so your car can do office work for you when not driving.
We’re also deploying millions of dedicated Digital Optimus units in the field at Superchargers where we have ~7 gigawatts of available power.
— Elon Musk (@elonmusk) March 12, 2026
Digital Optimus directly supports Tesla’s broader autonomy strategy. It leverages the same end-to-end neural networks, computer vision, and real-time decision-making tech that power Full Self-Driving (FSD) software and the physical Optimus humanoid robot.
By repurposing idle vehicle compute and extending AI4 hardware beyond driving, the project scales Tesla’s autonomy ecosystem from roads to digital workspaces.
As a virtual counterpart to physical Optimus, it divides labor: software agents manage screen-based tasks while humanoid robots tackle physical ones, accelerating Tesla’s vision of general-purpose AI for productivity, Robotaxi fleets, and beyond.
In essence, Digital Optimus bridges Tesla’s vehicle and robotics autonomy with enterprise-scale AI, promising massive efficiency gains. No other company currently matches its real-time capabilities on such accessible hardware.
It really could be one of the most crucial developments Tesla and xAI begin to integrate, as it could revolutionize how people work and travel.
News
Tesla adds awesome new driving feature to Model Y
Tesla is rolling out a new “Comfort Braking” feature with Software Update 2026.8. The feature is exclusive to the new Model Y, and is currently unavailable for any other vehicle in the Tesla lineup.
Tesla is adding an awesome new driving feature to Model Y vehicles, effective on Juniper-updated models considered model year 2026 or newer.
Tesla is rolling out a new “Comfort Braking” feature with Software Update 2026.8. The feature is exclusive to the new Model Y, and is currently unavailable for any other vehicle in the Tesla lineup.
Tesla writes in the release notes for the feature:
“Your Tesla now provides a smoother feel as you come to a complete stop during routine braking.”
🚨 Tesla has added a new “Comfort Braking” update with 2026.8
“Your Tesla provides a smoother feel as you come to a complete stop during routine braking.” https://t.co/afqCpBSVeA pic.twitter.com/C6MRmzfzls
— TESLARATI (@Teslarati) March 13, 2026
Interestingly, we’re not too sure what catalyzed Tesla to try to improve braking smoothness, because it hasn’t seemed overly abrupt or rough from my perspective. Although the brake pedal in my Model Y is rarely used due to Regenerative Braking, it seems Tesla wanted to try to make the ride comfort even smoother for owners.
There is always room for improvement, though, and it seems that there is a way to make braking smoother for passengers while the vehicle is coming to a stop.
This is far from the first time Tesla has attempted to improve its ride comfort through Over-the-Air updates, as it has rolled out updates to improve regenerative braking performance, handling while using Full Self-Driving, improvements to Steer-by-Wire to Cybertruck, and even recent releases that have combatted Active Road Noise.
Tesla holds a unique ability to change the functionality of its vehicles through software updates, which have come in handy for many things, including remedying certain recalls and shipping new features to the Full Self-Driving suite.
Tesla seems to have the most seamless OTA processes, as many automakers have the ability to ship improvements through a simple software update.
We’re really excited to test the update, so when we get an opportunity to try out Comfort Braking when it makes it to our Model Y.
Tesla Terafab set for launch: Inside the $20B AI chip factory that will reshape the auto industry
What is Digital Optimus? The new Tesla and xAI project explained
