Tesla CEO Elon Musk has publicly expressed his frustration after revealing that major automobile manufacturers have shown minimal interest in licensing the company's Full Self-Driving (FSD) technology. Despite his repeated warnings that the automotive industry cannot survive without advanced autonomous capabilities, competitors remain hesitant to adopt Tesla's pioneering system.
Musk's Public Outburst and Licensing Offers
In a recent post on his social media platform X, Musk disclosed that he has actively offered to license Tesla's FSD technology to competing automakers, but received disappointing responses. "I've tried to warn them and even offered to license Tesla FSD, but they don't want it! Crazy," the billionaire entrepreneur wrote, highlighting his bewilderment at the industry's resistance.
Musk elaborated that when traditional automakers do approach Tesla for discussions, they typically propose implementing the technology for small-scale programs scheduled years into the future. These proposals often come with requirements that Musk described as "unworkable for Tesla" given the company's aggressive development timeline and technological approach.
Legacy Automakers Pursue Alternative Partnerships
The situation represents a significant shift from earlier optimism. During an investor call in April 2024, Musk had indicated that Tesla was engaged in serious discussions with one major automaker about a potential licensing agreement. Industry reports at the time suggested this potential partner was Ford Motors, though the deal ultimately failed to materialize.
The collapse of these negotiations became particularly evident when Ford CEO Jim Farley publicly stated that "Waymo is better" than Tesla's FSD system, effectively ending speculation about Ford adopting Tesla's autonomous driving technology.
Instead of partnering with Tesla, several prominent automakers have forged alliances with competing self-driving technology companies. In a significant move this past April, Toyota partnered with Waymo to integrate autonomous technology into privately owned vehicles. Meanwhile, electric vehicle manufacturer Lucid has teamed up with Uber and Nuro to launch robotaxi services in San Francisco scheduled for next year.
Industry analysts identify liability concerns as a major factor driving automakers away from Tesla's approach. Unlike Mercedes-Benz, which accepts full legal responsibility when its Level 3 Drive Pilot system is engaged, Tesla employs a more aggressive deployment strategy by shipping experimental supervised software directly to everyday drivers. This methodology has prompted multiple investigations and lawsuits worldwide.
Mounting Regulatory Scrutiny and Emerging Competition
Tesla's FSD technology faces increasing regulatory challenges that may concern potential partners. Last month, US regulators launched an investigation following reports that FSD-equipped Tesla vehicles were running red lights and driving the wrong way. This probe followed another extensive investigation covering 2.4 million FSD-equipped Teslas conducted last year.
Despite the skepticism from established automakers, Tesla has found at least one enthusiastic potential collaborator. Faraday Future CEO YT Jia publicly urged Musk to collaborate on FSD technology, positioning his company as committed to partnership even as traditional manufacturers hesitate. In a post directly tagging Musk, Jia described autonomous driving as "technological inclusion rather than simple commercial competition," suggesting a more collaborative approach to advancing self-driving capabilities.
The ongoing resistance from major automakers presents a significant challenge to Musk's vision of establishing Tesla's FSD as the industry standard for autonomous driving. As competitors develop alternative partnerships and regulatory scrutiny intensifies, Tesla faces increasing pressure to demonstrate both the safety and commercial viability of its self-driving technology.
