Tesla will support FSD licensing for other manufacturers

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Tesla will support full self-driving licensing from other manufacturers, Elon Musk said on Twitter. This is something I suspected would happen once FSD is fully resolved and Tesla has reached either Level 4 or Level 5 autonomy. Financially, it actually makes sense for Tesla to license it to other manufacturers. Licensing FSD would become another revenue stream for the company.

Elon’s response on the matter was addressed to Steven Mark Ryan from Solving The Money Problem. Ryan’s first thread covered media and analyst reactions to Tesla’s fourth-quarter 2021 earnings call.

Ryan noted that the reaction, in a nutshell, was that Elon promised big product updates, but that Tesla prioritized the Optimus bot and that FSD would likely be resolved later this year. It seems analysts and some members of the media don’t see the value in the Optimus bot or FSD. Of course, many die-hard Tesla critics believe FSD is vaporware. I agree with Ryan’s opinion. Extreme critics refuse to recognize or even understand the value of Tesla’s FSD. They seem to be in their own little box, unable to see beyond the present moment and into the future.

Elon also responded, adding that he believes it would be five or more years before any company other than Tesla would be able to resolve FSD. Ryan agreed, adding that many will come to the realization that Tesla’s lead is impossible to close and would rather license FSD.

“Finally, if Tesla has data showing that FSD is 2x, 5x, 10x safer than humans and second place isn’t even at a human level…. Is FSD licensing really a choice or an obligation?”

Although Sawyer’s tweet above made me chuckle a little, I wouldn’t be surprised if this happened and GM then either gets credit or credit from bought and paid politicians for the software it licenses.

Licensing of FSD to other manufacturers

One thing to note here is that Elon didn’t say automakers — just manufacturers. While it’s wise to assume he had automakers in mind, once perfected, this technology can be implemented in all sorts of machines – from cars to real robots.

This would result in massive gains for Tesla — something many critics said Tesla would never achieve. I remember the days of bankruptcy forecasts and soon the days of “FSD is vaporware” will be behind us too.

Tesla’s achievements are not only ahead of its competitors, but it is so novel and groundbreaking that it will actually transform the world we live in and the way we interact with the world. Here’s more of what Elon said during the Q4 2021 earnings call:

“We believe that fully autonomous driving will become the most important source of profitability for Tesla. It’s — actually, if you go through the numbers on robo-taxis, it’s kind of crazy — it’s pretty damn good from a financial standpoint.

“And I think we are absolutely confident at this point that it will be achieved. And my personal guess is that this year we will achieve full self-driving, yes, with a level of data security that is significantly higher than the current one. So it’s — you know, the cars in the fleet that become essentially self-driving through a software update, I think could represent the greatest value appreciation of any asset class in history. We will see.

“It would also have a profound impact on improving safety and accelerating the world towards sustainable energy through far better asset utilization.”

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