Tesla May License FSD to Other Automakers - Maybe

by Chris Teague

Published: April 24th, 2024

tesla may license fsd to other automakers maybe

Tesla recently slashed the price of its Full Self-Driving assistance feature, and it now appears the automaker is taking steps to expand its reach to other OEMs. CEO Elon Musk recently confirmed the move, saying Tesla was in talks with at least one “major automaker” about a licensing deal for the tech.

This isn’t the first time Musk has hinted at plans to license FSD, but nothing has come of the alleged discussions so far. If it moves forward, the deal could help other automakers compete against Ford, General Motors, and Mercedes-Benz, which offer well-established competitors to FSD.

Even if Tesla struck a deal with another OEM, it would be a few years before the tech could be integrated with another vehicle brand. The jury is also still out on FSD’s driver monitoring features and how well they prevent abuse of the feature after several crashes and traffic incidents in recent years.

Full Self-Driving recently dropped to $8,000 or $99 per month, but that’s still a significant upcharge on the automaker’s more affordable vehicles. The recently updated Model 3 lost tax credit eligibility in lower configurations, but the fresh Performance variant qualifies. The Model Y also saw a remarkable price cut to just $29,420 to start, and it qualifies for tax credits, making it a compelling buy against the exceedingly expensive competition.

Though its name implies a high level of automation, FSD still requires an attentive driver. Some owners have said they need a higher level of concentration with the system active to prevent errant lane changes and accidents. This all highlights the fact that we’re still very far away from anything even slightly resembling consumer-ready, fully autonomous vehicles, so don’t get your hopes up about ditching your driver’s license just yet.

[Image: Jose Gil via Shutterstock]

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Chris Teague

Chris grew up in, under, and around cars, but took the long way around to becoming an automotive writer. After a career in technology consulting and a trip through business school, Chris began writing about the automotive industry as a way to reconnect with his passion and get behind the wheel of a new car every week. He focuses on taking complex industry stories and making them digestible by any reader. Just don’t expect him to stay away from high-mileage Porsches.

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2 of 23 comments

Spookiness on Apr 24, 2024

They'll keep chasing this dream/fantasy*, but maybe someday they'll realize their most valuable asset is their charging network.

(*kind of like Mazda with rotary engines. just give up already.)

2 Reply
DesertNative on Apr 24, 2024

More 'Look at me! Look at me!' from Elon Musk. It's time to recognize that there's nothing to see here, folks and that this is just about pumping up the stock price. When there's a real product on the ground and available, then there will be something to which we can pay attention. Until then, ignore him.

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