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Should HW4 be better than HW3?

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I have my TMY LR serviced recently and the service center gave me a loaner TMY LR, similar but older, like 3-4 years older with 8K+ mileage.

Compared to my 2023.11 TMY, I can see some subtle physical differences, though most of parts are pretty much the same. However, to my surprise, this older Model Y drives much smoother than my current new Model Y. Especially the FSD functions, that's what I am kind of puzzled. I can feel the difference clearly, it has better maneuver, makes less error, better judgement and smooth ride. I have checked that it has exactly the same(latest) FSD version. Then the only difference I can think of is the hardware. This old one definitely has HW3 while my TMY has HW4.

I thought HW4 should be an upgrade over HW3...or because the software doesn't take advantage of HW4 and still optimized for HW3? Or anything else?
 
I have my TMY LR serviced recently and the service center gave me a loaner TMY LR, similar but older, like 3-4 years older with 8K+ mileage.

Compared to my 2023.11 TMY, I can see some subtle physical differences, though most of parts are pretty much the same. However, to my surprise, this older Model Y drives much smoother than my current new Model Y. Especially the FSD functions, that's what I am kind of puzzled. I can feel the difference clearly, it has better maneuver, makes less error, better judgement and smooth ride. I have checked that it has exactly the same(latest) FSD version. Then the only difference I can think of is the hardware. This old one definitely has HW3 while my TMY has HW4.

I thought HW4 should be an upgrade over HW3...or because the software doesn't take advantage of HW4 and still optimized for HW3? Or anything else?
It's a physical upgrade, but its own software needs to catch up with older hardware's capability.