Gary Black: Legacy Automakers Won't License Tesla FSD

Prominent Tesla investor and analyst Gary Black has weighed in on the prospects of Tesla licensing its Full Self-Driving (FSD) software to other automakers, arguing that legacy car manufacturers are unlikely to sign on. According to a report from Benzinga, Black believes traditional automakers will instead choose to develop their own self-driving systems rather than rely on Tesla's technology.

Betting on In-House Development

Black's comments, as reported by Benzinga, suggest that established automakers see more strategic value in building proprietary autonomous driving capabilities than in adopting a competitor's platform. Licensing FSD would mean depending on Tesla for a core piece of future vehicle technology, a position many legacy manufacturers appear reluctant to accept given the competitive and reputational stakes tied to self-driving development.

Why Licensing Has Been a Talking Point

Tesla CEO Elon Musk has periodically floated the idea of licensing FSD to other automakers as a way to expand the software's reach and generate additional revenue streams for the company. Such a move would also help Tesla gather more real-world driving data to further train its self-driving algorithms. However, Black's assessment, per Benzinga, casts doubt on whether traditional automakers will actually pursue such partnerships, even if Tesla continues to make the offer.

What It Means for the Industry

If Black's prediction holds, the broader auto industry would remain fragmented in its approach to autonomous driving, with individual manufacturers continuing to pour resources into their own in-house systems rather than consolidating around a single third-party provider like Tesla. This dynamic could shape the competitive landscape for self-driving technology in the years ahead, as automakers weigh the costs and risks of independent development against the potential benefits of licensing a more mature system.

Source: Benzinga