Elon Musk's Stark Warning: Automakers Shun Tesla's Full Self-Driving Tech

Tesla CEO Elon Musk has issued a stark warning to traditional automakers, revealing that major companies like Ford, General Motors, and Stellantis are hesitant to license Tesla's Full Self-Driving (FSD) technology. Musk expressed frustration on social media platform X, stating that while he has offered to license the FSD suite, legacy manufacturers are unwilling to adopt it without imposing their own stringent and often impractical conditions.

Key Takeaways

• Legacy automakers are reportedly unwilling to license Tesla's Full Self-Driving technology without significant concessions.

• Elon Musk views this reluctance as a "dire warning" for competitors in the autonomous driving race.

• Analysts suggest Tesla could gain billions in value due to its FSD advancements.

A Missed Opportunity for Legacy Auto?

Musk's comments came in response to an analysis from Melius Research, which posited that traditional car manufacturers, not Tesla, are at risk in the rapidly evolving landscape of autonomous driving. Analyst Rob Wertheimer believes that Tesla's expertise in FSD could translate into hundreds of billions of dollars in market value.

Musk elaborated on X, "I’ve tried to warn them and even offered to license Tesla FSD, but they don’t want it! Crazy."

He further described the limited engagement from these companies: "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."

Past Licensing Offers and Future Implications

This is not the first time Musk has alluded to licensing discussions. Several years ago, he mentioned early talks with a legacy automaker about integrating Full Self-Driving, with speculation at the time pointing towards Ford due to ongoing conversations with its CEO, Jim Farley. However, no deal was ever confirmed.

Ford, despite being an aggressive player in the electric vehicle (EV) market, has recently scaled back its EV ambitions due to profitability concerns and fluctuating demand. Musk's warning suggests that companies that delay or refuse to embrace advanced autonomous driving technologies like FSD may face significant future challenges, mirroring the difficulties many legacy automakers have encountered in the EV sector.

Musk's perspective implies that these companies are falling behind, much like they did in the EV race against Tesla and other global players such as XPeng and BYD, potentially missing a crucial window of opportunity in the development of self-driving capabilities.