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Tesla Full Self-Driving’s biggest improvements from v13 to v14
Tesla Full Self-Driving (Supervised) v14 has been out for several weeks now, and there are a tremendous number of improvements, as we have now reached the fourth iteration of the semi-autonomous software.
Tesla began the v14.1.4 launch last night, which included minor improvements and addressed brake-stabbing issues many owners have reported. In my personal experience, the stabbing has been awful on v14.1.3, and is a major concern.
However, many things have improved, and only a couple of minor issues have been recurring. Many of the issues v13 addressed are no longer an issue, so Tesla has made significant progress.
Here are some of the most notable improvements Tesla made with v14 from v13:
Better Lane Switching on Highways
One of my biggest complaints with v13 was that the “Hurry” Speed Profile would often stay in the left lane, even when there were no passing cars. The legality of cruising in the left lane fluctuates by jurisdiction, but my personal preference is to drive in the right lane and pass on the left.
That said, Tesla has improved FSD’s performance with more courteous lane behavior. It no longer camps in the left lane and routinely gets back in the right lane after passing slower cars.
More Awareness for Merging Traffic and Makes Courteous Moves
There have been times when FSD has been more aware of merging traffic, and even cross traffic, than most human beings.
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Here are a few examples –
- Full Self-Driving lets a car out of cross traffic during a busy time of day. This road tends to get very congested, especially during rush hour, so the car that was let in by FSD would have been sitting there for likely a minute longer if my Tesla had not let him in:
When you realize Tesla Full Self-Driving is more courteous than most human drivers… pic.twitter.com/PnKJcTpwKu
— TESLARATI (@Teslarati) October 26, 2025
- A busy, four-lane expressway with a quick exit on the far side of the highway for this merging vehicle. I’ve seen some drivers be extremely inattentive and travel at the same speed as merging cars, making their entry onto the expressway less seamless. FSD doesn’t do that; it makes way for merging cars:
— Joey Klender (@KlenderJoey) October 26, 2025
More Confident Driving Around Mail Trucks…and Amish
I encounter a lot of Amish in my area of Pennsylvania, and they commonly use both shoulders and the road, so traffic can get congested at times.
In the past, I’ve taken over when encountering Amish buggies, mail trucks, or other vehicles that are moving slowly or making frequent stops. I have felt it is more logical to just take over in these situations.
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I decided not to yesterday on a long drive through Lancaster, PA, and the FSD did a wonderful job of confidently overtaking these vehicles:
Let’s see how Tesla Full Self-Driving v14.1.3 handles Amish traffic
Used Dashcam for these; no GoPro in the car today pic.twitter.com/ZYxrBXD9nZ
— TESLARATI (@Teslarati) October 25, 2025
This was really impressive and fun to see. There was a slight stutter during one of the three instances, but overall, I didn’t have any concerns.
Object Avoidance
On v13, I almost let the car drive into a fallen branch in the middle of the road. A mile later, the car swerved out of the way for horse droppings. It was a beautiful, clear morning, and the fact that the car did not try to avoid the branch, but did steer away from poop, was concerning.
Tesla has obviously done a great job at refining FSD’s ability to navigate around these road hazards. Last night, it swerved around a dead animal carcass in the middle of the highway. I didn’t see it until we were already going around it:
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Some more Tesla Dashcam footage that was very impressive – v14.1.3:
✅ Swerved to avoid an animal carcass on the highway
✅ Consideration move to allow a car to mergeDashcam weirdly makes things look slower than they actually occurred. These both were enough for me to hit the… pic.twitter.com/CjmYLOBMQU
— TESLARATI (@Teslarati) October 26, 2025
It was awesome to see this and never feel alarmed by the sharp movement. The maneuver was smooth and really well done.
Better Speed Consistency
With v13, I felt I had to constantly adjust the Speed Profile, as well as the Max Speed setting, when using FSD. With V14, I don’t feel like I am making as many adjustments.
Tesla axed the Max Speed setting altogether with v14, which was a good move, in my opinion. Choosing the Speed Profile is now more intuitive by using the right scroll wheel. If the car is traveling too fast or too slow, just change the profile.
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Three things Tesla needs to improve with Full Self-Driving v14 release
V13 had some issues with local roads, and I felt it would travel at strange speeds. In a 45 MPH zone, it would sometimes take a long time to reach 40 MPH, then hover between 43 MPH and 47 MPH. It would then fluctuate between those two speeds, frustrating drivers behind me, understandably.
V14 gets up to speed much better and travels at speeds I’m much more comfortable with on both local roads and highways.
Elon Musk
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
Elon Musk told SpaceX staff AI revenue will soon dwarf rockets and Starlink combined entirely.
Elon Musk told SpaceX employees this week that artificial intelligence, not rockets, will soon carry the company’s revenue. In a roughly 29 minute internal address posted on SpaceX’s X account on Tuesday, Musk said AI revenue will pass every other line of business at SpaceX “probably in September” and pull further ahead by the fourth quarter.
The numbers he gave are specific. SpaceX currently runs 1.4 gigawatts of AI compute capacity. Musk wants that at 10 gigawatts by the end of 2027, a jump he tied directly to revenue: “if we bring 10GW of AI online by the end of next year, it will be $300 billion to $500 billion a year in revenue.” He called those “big numbers,” which undersells a projection larger than what most countries produce in a year.
We made rockets reusable and are rebuilding the internet in space. The next challenge: making life multiplanetary and understanding the true nature of the universe
Watch @ElonMusk deliver a company update to @SpaceX employees pic.twitter.com/5c8rxoCQfu
— SpaceX (@SpaceX) August 11, 2026
Musk went further on where AI fits into SpaceX’s future. “Probably in four or five years, AI will be 99% of the value of SpaceX,” he told staff, adding that digital intelligence would eventually run “a trillion times” ahead of biological intelligence as computing scales. He tied that growth to the company’s founding mission, telling employees “we must win on AI, because the future is overwhelmingly AI and robots,” with the payoff meant to help fund Starship and a Mars program that increasingly runs through Terafab, the joint Tesla, SpaceX and xAI chip plant.
Elon Musk launches TERAFAB: The $25B Tesla-SpaceXAI chip factory that will rewire the AI industry
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None of this is entirely new territory. SpaceX told investors much the same story during its first earnings call as a public company on August 4, where Musk moved the company’s $1 trillion revenue target up a year to 2030 and said Starlink could someday carry a majority of the world’s internet. What the all hands video adds is a hard deadline and a specific power figure Musk had not given publicly before, along with a franker pitch to his own workforce that AI, not launch cadence, is now the thing SpaceX is betting its future on.
The AI revenue itself is not coming from SpaceX training its own models. It is largely Starlink acting as the network layer for xAI’s workloads, plus SpaceX renting out compute capacity directly, the same approach behind the roughly $16 billion the company spent on AI infrastructure in a single quarter.
Musk closed the video with a pitch aimed at recruiting and retention rather than investors, telling employees that anyone who helps SpaceX win the AI race will eventually get the chance to go to the moon or Mars themselves. Whether SpaceX can turn 1.4 gigawatts into 10 in seventeen months is the more immediate question, and one that will show up in quarterly numbers well before anyone leaves Earth.
In a new note to investors on Tuesday, Morgan Stanley analyst Andrew Percoco said that Tesla has one big financial question to answer for investors regarding its Robotaxi rollout, Full Self-Driving software, and Optimus.
Percoco said in the note that, for the most part, investors are still very positive about the direction the company is headed. However, there are some things the firm would like to see, and they have to do with financials.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla bulls are more than convinced that the company’s Full Self-Driving software is proof it can develop physical AI. Financially, however, there are still some questions, especially on elevated spending, which CEO Elon Musk said would occur as the company works to roll out Robotaxi faster and continue developing its Optimus robot.
The latter two are where Tesla will have to prove progress to investors, as Percoco writes that both projects “will require clearer evidence that Robotaxi is scaling and more tangible Optimus proof points to support the ROI on elevated capex.”
Percoco said the second quarter earnings call did not change his long-term thesis of where Tesla is positioned in the AI race, which is out in front. However, there are concerns that weaker gross margins and higher R&D spend will stress financials, and that has “sharpened our (and investors’) focus on measurable progress across Robotaxi and Optimus.”
Additionally, Robotaxi still needs to be proven with more operation in existing cities while maintaining safety but improving how many rides it gives in any given time, he said. For Optimus, Percoco wrote that he is “still looking for evidence beyond commentary around SOP.”
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Morgan Stanley put Percoco in charge of covering Tesla after long-time analyst Adam Jonas transitioned to the automotive side.
Currently, Morgan Stanley has a $415 price target on Tesla and a ‘Hold’ rating on the stock. It is trading at around $330 at the time of publication, which was 2:30 P.M. on the East Coast.
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.
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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.
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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.
SpaceX’s next trillion dollar bet has nothing to do with rockets, Musk tells staff
Tesla has one big financial question to answer for investors: Morgan Stanley
