Elon Musk Says Tesla Open To Licensing Software And Supplying Powertrains To Rivals

BY Michael Karkafiris | Posted on

Tesla’s CEO Elon Musk said that the electric carmaker is open to licensing software and supplying powertrains and batteries to other carmakers.

This won’t be the first time Tesla has supplied parts to other manufactures; previous deals included proving battery packs to Mercedes and Toyota.

“Tesla is open to licensing software and supplying powertrains & batteries. We’re just trying to accelerate sustainable energy, not crush competitors,” said Musk on Twitter.

Musk didn’t provide further details but did confirm that this includes licensing its Autopilot driver-assistance software to anyone interested.

This isn’t the first time Tesla has expressed its interest in licensing both its software and hardware to other companies; back in 2014, the Palo Alto-based carmaker announced that all of its intellectual property would be freely available. “Tesla will not initiate patent lawsuits against anyone who, in good faith, wants to use our technology,” the company said back then.

That didn’t stop them from filing a lawsuit against Rivian Automotive, accusing them of poaching its employees and stealing trade secrets, mind you.

Elon Musk admitted in an earnings conference call that the Tesla models are not “affordable enough” and that the real limitation to the company’s growth is battery production. To that end, Tesla will expand its collaboration with Panasonic, CATL, and LG Chem and is looking to build a new battery factory in California.

Tesla is also expected to announce a new “low-cost, long-life” battery pack on September 15, which will reportedly debut in the Model 3.

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