Tesla‘s CEO Elon Musk has been saying for several years that the company plans to license its Full Self-Driving (FSD) software to other automakers.
However, the company is yet to announce the first licensing agreement. On Monday, Musk said that the other OEMs are not interested.
Analysts from Melius Research stated in a new research note, shared by Tesla shareholder Sawyer Merritt on X, that Tesla‘s stock is a “must own.”
According to Melius, the company’s “autonomous-driving lead is approaching an irreversible tipping point that could trigger one of the biggest value shifts in modern industrial history.”
The analysts added that when the widespread rollout of Full Self-Driving (FSD) arrives, “it will still shock most people.”
Commenting on the note, Musk noted that legacy automakers do not want the software, despite Tesla having offered to license it.
“I’ve tried to warn them and even offered to license Tesla FSD, but they don’t want it! Crazy…,” he said.
The chief executive added that “when legacy auto does occasionally reach out, they tepidly discuss implementing FSD for a tiny program in 5 years with unworkable requirements for Tesla, so pointless,” concluding the post with two dinosaur emojis.
FSD Licensing
Musk first suggested in 2021 that Tesla might license its FSD software to other automakers, noting that he had discussed the idea with several companies. Those discussions did not result in any agreements.
The CEO mentioned the possibility again in July 2023, during the second-quarter earnings call.
“Something I think I want to emphasize, like, very strongly, this is a very important point, is that (…) we are very open to licensing our full self-driving software and hardware to other car companies,” Tesla‘s chief said then.
“And we are already in discussions — early discussions — with a major OEM about using the Tesla FSD,” he stated. “So, we’re not trying to keep this to ourselves.”
In April 2024, the chief executive reiterated that the company was “in conversations with one major automaker regarding licensing FSD.”
By then, Chief Financial Officer Vaibhav Taneja said that “in the conversations which we’ve had with some of these OEMs, I just want to also point out that they take a lot of time in their product life cycle.”
“We might have a licensing deal earlier than that, but it takes a while,” the executive added, with Musk saying that a “deal signed now would result in it being in a car [in] probably three years.”
In early 2024, Musk had hopes that Tesla could sign “maybe more than one” deal in that year.
Despite its goals, the company has not revealed any partnership with other OEMs regarding its FSD software.
Ford on Self-Driving Tech
In February, Ford’s CEO Jim Farley said the company would “make a practical decision” regarding a potential partnership on autonomous driving technology.
Questioned about that option, Farley said the company is “at that point where we have to decide” as Ford‘s customers have driven over 300 miles using the in-house BlueCruise software.
By the end of 2024, BlueCruise was available in the United States, Canada and several markets in Europe — unlike the FSD, which still awaits regulatory approval in the Old Continent.
Farley admitted that the team was aware of Tesla’s full self-driving (FSD) software, and the talks were confirmed in June.
However, the collaboration rumors ended when Farley stated that Waymo‘s approach to self-driving made more sense for Ford.
According to the executive, LiDAR is a key component, unlike Tesla’s system, which relies solely on cameras.
“Where the camera will be completely blinded, the LiDAR system will see exactly what’s in front of you,” he noted.
Interest x Faseability
Tesla‘s Vice President of Finance Sendil Palani later replied to the post, noting that other automakers have shown interest in the software.
However, they do not (yet) possess the capabilities to support it.
“In some cases there has been great interest, but low feasibility,” Palani wrote on X.
He exemplified with “the lack of an ability to receive over-the-air software updates (in any reasonable time frame).”
Tesla‘s Full Self-Driving is currently on its 14th version. Since being released in early October, six updates have followed week by week, introducing new features and bug improvements.
Last month, Musk wrote on X that “14.2 rolls out in a few weeks and then 14.3 a few weeks later, depending on safety testing.”
The FSD 14.2 was released last week. According to the CEO, the car will feel “sentient” in the following series.
