Musk: Tesla Robotaxi Launch to Drive FSD Licensing

Tesla's Robotaxi Launch: A Game Changer for Autonomous Driving?

Elon Musk, CEO of Tesla, asserts that the imminent launch of Tesla's Robotaxi platform later this month will compel other automotive companies to license Tesla's Full Self-Driving (FSD) software. This bold prediction comes as the first Tesla Robotaxi test vehicles were spotted on public streets in Austin, Texas, following the city's official listing of Tesla as an autonomous vehicle operator.

Musk's Vision for FSD Dominance

Musk believes that as Tesla's Robotaxis become widespread, other automakers' independent autonomous solutions will prove insufficient, forcing them to adopt Tesla's FSD technology. He stated, "The automakers keep being told that this isn’t real or that just buying some hardware from Nvidia will solve it. As Tesla robotaxis become widespread and their other solutions don’t work, they will naturally turn to us."

Key Takeaways

• Tesla's Robotaxi launch is anticipated to occur this month, with some reports suggesting June 12.

• The first Robotaxi test mules have been seen in Austin, Texas.

• Musk is confident that the success of Robotaxi will drive other automakers to license Tesla's FSD.

• Tesla has previously confirmed discussions with a major automaker regarding FSD licensing.

The Path to Licensing

Tesla has been in discussions with at least one major automaker regarding FSD licensing since early 2024. Musk previously indicated that such licensing would involve integrating Tesla's camera systems and inference computers, along with their software. He emphasized that eventually, cars without advanced self-driving capabilities will become undesirable to consumers, making FSD licensing a necessity rather than an option.

Hardware and Software Capabilities

Musk highlighted that all new Teslas are manufactured with the hardware necessary for unsupervised self-driving, meaning existing vehicles could potentially become Robotaxis through over-the-air software updates. He also revealed that the Robotaxis currently being tested run a new version of FSD software, with an even more advanced version in alpha testing that boasts significantly more parameters, though it requires further refinement before public release.

Industry Impact and Predictions

Investing analyst Dave Lee predicted that at least one automaker would license FSD from Tesla by the end of the year. While integrating FSD into another company's vehicles would require significant engineering and design work, potentially taking up to two years, the long-term benefits of leveraging Tesla's proven autonomous technology could be substantial. The move could mirror the widespread adoption of Tesla's North American Charging Standard (NACS) by other automakers, which followed Ford's initial adoption.