Elon Musk revealed during Tesla’s Q4 conference call that despite tentative conversations, no licensing agreement for Tesla’s Full Self-Driving (FSD) has been reached with other car manufacturers. Musk emphasized that other automakers may not believe in the reality of FSD, echoing sentiments he expressed earlier about the industry’s skepticism.
In 2021, Musk had hinted at discussions with other automakers regarding licensing self-driving technology, but nothing materialized. Last year, Tesla announced its willingness to license Autopilot and FSD to other companies, marking a shift in strategy. However, as Musk confirmed, the belief in FSD’s feasibility remains a challenge in negotiations.
The Q4 earnings call provided Musk an opportunity to encourage CEOs of other car companies to approach Tesla for FSD licenses. Musk expressed confidence that the authenticity of FSD would become evident in the coming year.
Tesla recently introduced FSD Beta v12, featuring a significant architectural rewrite incorporating end-to-end neural nets. Despite the advancements, FSD Beta drivers are still required to maintain hands-on control, highlighting the complexities of achieving a true level 4 or 5 self-driving system.
Analysis: The Challenge and Uncertainty Surrounding FSD
While Musk remains optimistic about FSD’s realization, skepticism lingers within the automotive industry. The recurring delay in delivering a fully autonomous system raises questions about Tesla’s ability to meet promises. With FSD Beta v12 termed the “last hope,” concerns about hardware limitations on existing vehicles and the viability of current technology persist.
Investors face the challenge of evaluating the short-term impact of setbacks against the potential long-term benefits. The market response to FSD developments underscores the importance of distinguishing personal opinions about a product from consensus valuations in the stock market. As Musk urges other CEOs to explore FSD licensing, the industry awaits tangible evidence of Tesla’s self-driving capabilities.
