Part 7/11:
Strategic Industry Implications: Licensing Tesla’s Self-Driving Software
Tesla's approach isn't limited to manufacturing vehicles. Musk envisions the company licensing its advanced self-driving software to other automakers like Toyota, Honda, GM, and Ford. Given Tesla’s dominance in AI-driven autonomy and the significant cost reductions, other manufacturers could circumvent their own software development burdens by adopting Tesla’s proven platform.
This move could revolutionize the automotive industry, where full autonomy becomes the norm. Since the production costs of autonomous vehicles have fallen below $30,000—especially in models like the Model 3—autonomous vehicles are poised to become affordable and widespread.