Tesla, Inc. TSLA is in discussions with âa major automakerâ 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:Â While integrating FSD into competitor vehicles requires minimal effort (utilizing compatible cameras, inference computers, and the software license), deployment will take time, Musk said.Â
âI 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 itâs integrated with a car,â 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.
Teslaâs Ambitions: Despite its name, FSD currently requires active driver supervision and doesnât 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.
âEven if I got kidnapped by aliens tomorrow, Tesla will solve autonomy, maybe a little slower, but it would solve autonomy for vehicles at least,â Musk said. âIf somebody doesnât believe Tesla is going to solve autonomy, I think they should not be an investor in the company.â
âI mean, weâre putting the actual auto in automobile,â he added later on the call.
Shifting Stance: In Teslaâs previous quarterâs earnings call, Musk stated the company hadnât secured any FSD licensing deals because competitors didnât believe âitâs (FSD) real quite yet.â Now, Musk predicts that without FSD capability, consumers wonât purchase cars in the future. âLicense it or nobody will buy your car,â he warned.
Regulatory Hurdles: Deploying autonomous vehicles hinges on both technological advancement and regulatory approval.Â
Teslaâs 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.Â
Other autonomous car companies have also been clearing the regulatory path for Tesla, Elluswamy said, referring to Alphabet Incâs Waymo.
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