Musk Says Rivals Won't License Tesla FSD; Fund Manager Doubts They Ever Will

Tesla CEO Elon Musk has once again addressed the long-running question of whether rival automakers will adopt Tesla's Full Self-Driving (FSD) software, saying that competitors have still not agreed to license the technology, according to a report from Yahoo Finance. Musk has repeatedly floated the idea that Tesla could offer FSD to other car manufacturers, positioning it as both a potential revenue stream and a broader push to accelerate autonomous driving adoption across the auto industry.

A Fund Manager's Skepticism

Commenting on Musk's remarks, a fund manager cited in the report suggested that rival automakers are unlikely to ever license Tesla's FSD system, regardless of how the technology continues to develop. The fund manager's view implies a level of doubt about whether competing car companies would be willing to depend on a rival's proprietary self-driving software, even if it offers technical or performance advantages over their own in-house systems.

Why Licensing Remains Unresolved

The report does not detail the specific reasons rival automakers have declined to pursue licensing deals, but the dynamic underscores a broader tension in the automotive industry around autonomous driving technology. Automakers developing their own self-driving systems may be reluctant to hand a competitive edge to Tesla by becoming dependent on its software, even as Musk continues to promote FSD licensing as a viable business opportunity for the company.

For Tesla, FSD remains a central pillar of its long-term strategy, tied closely to the company's broader ambitions around autonomy and robotaxi services. Whether other automakers eventually reconsider licensing the software remains an open question, but for now, according to the Yahoo Finance report, the standoff between Musk's outreach and rivals' reluctance appears unresolved.

Source: Yahoo Finance