Tesla is discussing licensing full self-driving software to another automaker

Elon Musk said in an earnings call Wednesday that Tesla is in “discussions” to license its full self-driving (FSD) driver-assistance technology to another major automaker. He did not name the company, although he said that licensing FSD was always part of the plan.

“We’re not trying to keep it to ourselves,” Musk said on the call. “We’re very happy to license it to others.”

Musk has spoken in the past about licensing FSD to competitors. Last month, he tweeted that “Tesla wants to be as helpful as possible to other car companies” — while also being “happy to license Autopilot/FSD or other Tesla technology.”

Most automakers’ driver-assistance systems are for limited use on highways, while Tesla allows its customers to engage FSDs at traffic signals, intersections and local roads with vulnerable road users. The system controls acceleration and deceleration, makes turns – including unsafe left turns, which are extremely difficult for automated systems – and recognizes traffic signs and other road signs. The system also requires drivers to pay attention to the road and take control of the vehicle when asked.

Tesla’s driver-assistance technology has pushed the boundaries of what’s safe for customers on public roads and attracted the attention of federal regulators. The National Highway Traffic Safety Administration is investigating 16 accidents in which Tesla vehicle owners using Autopilot crashed into stationary emergency vehicles, resulting in 15 injuries and one death. Tesla is facing a possible recall of Autopilot, FSD or both after the government upgraded its investigation earlier this year.

Last year, Tesla recalled the FSD after the top federal safety agency identified the driver-assistance program as a “crash risk.” The company briefly paused the FSD rollout as it pushed an over-the-air software update to address issues identified by regulators. Washington Post recently analyzed Federal accident data and found that there have been 736 accidents involving Tesla vehicles with Autopilot on since 2019, including 17 deaths.

Nevertheless, Tesla’s aggressive push of driver-assistance features onto its customers has influenced its competitors to follow suit with their own products. Ford, GM, Mercedes-Benz, Volvo and other companies are developing Level 3 autonomous systems, which can control a vehicle without driver input.

Musk also said on the call that first-time Tesla customers will be allowed to transfer the FSD to another vehicle in the third quarter of this year as a “one-time apology.” This way, customers can transfer the FSD to a new Tesla vehicle so that it is not “locked” into the old model. This has been a popular request from customers who own multiple Tesla vehicles.