After years of promoting the idea that Tesla’s Full Self-Driving (FSD) system would be so advanced that legacy automakers would have no choice but to license it, Elon Musk is now acknowledging that it isn’t happening.
“They don’t want it!” Musk said in a post on X, admitting that automakers simply aren’t interested in adopting Tesla’s technology.
He added, “When legacy auto does occasionally reach out, they tepidly discuss implementing FSD for a tiny program in 5 years with unworkable requirements for Tesla, so pointless.”
This marks a major shift from earlier claims. Back in 2021, Musk said Tesla was in “preliminary discussions” to license the software.
In 2023, he posted that Tesla was “happy to license Autopilot/FSD or other Tesla technology” to competitors. And by 2024, he claimed the company was in talks with at least one major automaker, saying there was a “good chance” a deal would be signed that year. That deal never happened.
Ford CEO Jim Farley gave one likely reason earlier this year when he said publicly, “Waymo is better,” referring to Google’s self-driving technology. Toyota and other automakers have also opted to partner with Waymo instead.
Tesla’s Approach Draws Scrutiny
The core issue comes down to safety, liability and the process of validation. Traditional automakers follow rigorous testing standards before releasing any driver-assist technology, and they take legal responsibility when it’s in use.
Mercedes-Benz, for example, accepts full liability when its Level 3 Drive Pilot is active.
Tesla, on the other hand, has opted for what critics call an “aggressive deployment” strategy, releasing beta software to customers who essentially become testers.
This has resulted in a string of federal investigations and lawsuits, including a recent case where Tesla settled just before trial over a crash involving a police vehicle, a known issue with its Autopilot system.
Legacy car companies reportedly pushed for Tesla to guarantee performance and take on liability if they licensed FSD.
Tesla appears unwilling to do that. Musk called those terms “unworkable,” but from the perspective of traditional automakers, that means they can’t trust the system to perform reliably or safely without major legal risk.
A Reality Check for Tesla’s AI Dreams
The lack of interest from other automakers challenges a key part of Tesla’s long-term growth story. Musk has repeatedly framed Tesla not just as an automaker, but as an AI and robotics company, with FSD positioned as its first major software product. That vision now appears to be on hold.
Meanwhile, competitors are moving forward with other partnerships and technologies. If FSD can’t meet industry expectations for autonomy and accountability, it’s unlikely Tesla will find buyers for it outside its own customer base.
At this point, Musk has hit a dead end.
If Tesla wants other automakers to actually use FSD, it’s going to take more than bold claims. The technology will need to meet the same safety and accountability standards the rest of the industry already follows.