Elon Musk says automakers still hesitant to license FSD

Elon Musk says Tesla has offered to license its Full Self-Driving (FSD) technology to legacy automakers, but most have shown little interest. According to Musk, while a few manufacturers have reached out over the years, talks have largely stalled due to long timelines and conditions that Tesla sees as unrealistic, delaying what he believes is an inevitable shift toward autonomous vehicles.

In a post on X on Monday, Musk expressed his frustration with how discussions with other manufacturers have played out — or failed to materialize in any meaningful way.

Musk’s comments appear to contrast with his previous optimism around licensing discussions. Back in early 2024, he revealed it was actively negotiating with at least one major automaker to integrate FSD into its vehicles. During Tesla’s Q1 2024 earnings call, Musk said there was a strong possibility Tesla could sign one — or even two — licensing agreements that year, although he cautioned that widespread deployment wouldn’t happen anytime soon.

“They’re talking years before they will put it in their product. We might have a licensing deal earlier than that, but it takes a while. This is where the big difference between us and them is.”

Musk pointed to the steep differences between Tesla and traditional automakers when it comes to development speed, risk tolerance, and product cycles. While Tesla pushes rapid software updates to millions of vehicles already on the road, legacy OEMs often operate on multi-year timelines, making fast adoption of cutting-edge autonomy far more complex.

Tesla’s licensing strategy would go beyond just software. Musk has previously made it clear that any deal would also involve Tesla providing its autonomy hardware, including cameras and onboard AI computers. This would require automakers to adjust their vehicle architectures, which could explain some of the resistance — not just from a technical standpoint, but also from a competitive one.

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