Benzinga - by Anan Ashraf, Benzinga Editor.
Tesla, Inc. (NASDAQ:TSLA) is in discussions with “a major automaker” to license its Full Self-Driving (FSD) software, CEO Elon Musk revealed on Tuesday, adding that the technology will eventually enable true autonomous driving.
Integration and Timeline: While integrating FSD into competitor vehicles requires minimal effort (utilizing compatible cameras, inference computers, and the software license), deployment will take time, Musk said.
“I think we have a good chance we do sign a deal this year, maybe more than one. But yes, it would be probably three years before it’s integrated with a car,” Musk said. The delay in deployment, company CFO Vaibhav Taneja said, will not be due to delay from Tesla but due to the work that rival automakers have to do in terms of design changes to integrate the software.
Tesla’s Ambitions: Despite its name, FSD currently requires active driver supervision and doesn’t offer full autonomy. However, Musk remains optimistic that Tesla will eventually achieve true autonomy, comparing self-driving cars to elevators that transport passengers to their destinations.
“Even if I got kidnapped by aliens tomorrow, Tesla will solve autonomy, maybe a little slower, but it would solve autonomy for vehicles at least,” Musk said. “If somebody doesn’t believe Tesla is going to solve autonomy, I think they should not be an investor in the company.”
“I mean, we’re putting the actual auto in automobile,” he added later on the call.
Shifting Stance: In Tesla’s previous quarter’s earnings call, Musk stated the company hadn’t secured any FSD licensing deals because competitors didn’t believe “it’s (FSD) real quite yet.” Now, Musk predicts that without FSD capability, consumers won’t purchase cars in the future. “License it or nobody will buy your car,” he warned.
Regulatory Hurdles: Deploying autonomous vehicles hinges on both technological advancement and regulatory approval.
Tesla’s Director of Autopilot software, Ashok Elluswamy, believes regulatory hurdles might be minimal if sufficient data proves the safety advantages of autonomous cars over human-driven vehicles.
Other autonomous car companies have also been clearing the regulatory path for Tesla, Elluswamy said, referring to Alphabet Inc‘s Waymo.
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