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Tesla in talks with another car maker to license ‘Full Self-Driving’ tech

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A rival car maker is looking to licence Tesla’s so-called ‘Full Self-Driving’ software for its vehicles, according to the US car giant – which has made bold claims about brands who ignore the capabilities of its technology.

US car giant Tesla has confirmed it is in discussion with another “major” car maker to license its controversial ‘Full Self-Driving’ (FSD) semi-autonomous driving software.

Speaking to investors this morning, CEO Elon Musk likened other car makers who do not adopt Tesla’s Full Self-Driving technology to the obsolescence of Nokia flip phones following the rise of iPhone and Android smartphones.

The executive first expressed interest last year in licensing the technology, and said today Tesla is “in conversations with one major automaker regarding licensing FSD” – with hopes to sign a deal with at least two car makers this year.

The ‘Full Self-Driving’ software recently exited the beta phase with the arrival of a new version, 12.3, which users in the US – where it is available in its entirety, unlike Australia – say is much improved compared to previous versions.

It is now marketed as Full Self-Driving (Supervised), recognising that it is still considered a ‘Level 2’ driver-assistance system, and the driver is still legally in control of the vehicle, so they must pay attention to the road.

Full Self-Driving – and Tesla’s other driver-assistance systems, including the so-called ‘Autopilot’ – have come under scrutiny from US regulators for a series of high-profile crashes involving Tesla vehicles, as well as recalls to fix problems with the software.

“It just needs to be obvious [to other car makers] that our approach is the right approach, and I think it is,” Musk told investors and media.

“Now with [version] 12.3, if you just have the car drive you around, it is obvious that our solution with a relatively low-cost inference computer and spattered cameras can achieve self-driving.

“No lidars, no radars, no ultrasonics, nothing. It would really just be a case of having [other car makers] use the same cameras and inference computer, and licensing our software.

He said: “I remember, back when Nokia was king of the hill for cell phones, and I saw them come out with a smartphone that was basically a brick with limited functionality [compared to] the iPhone and Android.”

“People still did not understand that all the phones were going to be that way. There were not going to be any flip phones.

“If people don’t understand all cars will need to be smart cars, or you will not sell the car. Nobody will buy it.

“Once that becomes obvious, I think licensing becomes not optional … it’s license or it or nobody will buy your car.

Musk or the other Tesla executives on the call did not nominate the car maker they are in discussions with, however the CEO warned it could take at least three years for another car maker to integrate Full Self-Driving software into their vehicles.

“In the conversations we’ve had with some of these [manufacturers] … [we have learned] they take a lot of time in the product lifecycle,” Tesla chief financial officer Vaibhav Taneja told investors and media.

“They’re talking years before they will put it in their product. We might have a licensing deal earlier than that, but it takes a while. This is where the big difference between us and them is.”

Musk added: “A deal signed now would result in [FSD] being in a car in probably three years,” acknowledging that was “lightning fast” timing for an “eager” manufacturer.

“There’s a good chance we do sign a deal this year. Maybe more than one,” he said.

“But it would be probably three years before it’s integrated in a car even though all you need is cameras, and our inference computer. We’re not talking about a massive design change.”

Tesla is understood to be testing its Full Self-Driving software in Australia, with the full system – capable of human-supervised, computer-controlled driving on any type of road, not just highways – not available to local customers yet.

It can be ordered in Australia for $10,100 on top of any Model 3 or Model Y, but cannot yet be unlocked.

Company executives told investors and media Tesla is looking to expand the global availability of the ‘Full Self-Driving’ software where government regulators allow.

The post Tesla in talks with another car maker to license ‘Full Self-Driving’ tech appeared first on Drive.

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