Posted on July 19, 2023
Tesla CEO Elon Musk has confirmed that the company is currently in 'early' discussions with a 'major' automaker about licensing its self-driving technology.
During the Q2 2023 earnings call, Musk emphasized that Tesla is open to licensing its Autopilot and Full Self-Driving (FSD) package to other automakers. This announcement comes after the CEO has repeatedly expressed the company's willingness to share its self-driving technology.
Musk mentioned that the discussions are in early stages with a 'major OEM' (Original Equipment Manufacturer), a term used to refer to automakers in the auto industry.
Incorporating Tesla's self-driving technology into vehicles from another automaker would be a significant undertaking. It would necessitate integrating numerous cameras at specific angles around the vehicles and incorporating Tesla’s self-driving computer. This camera-based approach diverges from the strategies of most other automakers, which often rely on different sensors, like lidar.
Most automakers have opted for purpose-built vehicles for autonomy, such as GM’s Cruise, while their consumer vehicles typically feature level 2 or 3 autonomous features. Tesla, however, believes that its approach will enable level 4 or 5 autonomy on consumer vehicles via software updates, a promise it has yet to fulfill.
With Tesla's communication channels with other automakers more open than ever due to its recent Supercharger partnerships, it's plausible that these talks could lead to selling them on Tesla’s Autopilot/Self-Driving technology.
Despite Tesla’s history of missed deadlines, several automakers lag behind in autonomous driving technology, and partnering with Tesla may be a strategic move to avoid falling further behind.
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