Elon Musk says other carmakers aren’t interested in licensing Tesla Full Self-Driving

Carmakers refuse full self-driving deals

On Monday, Nov. 24, 2025, Elon Musk said on X that rival carmakers are not interested in licensing Tesla’s Full Self-Driving software.

He said companies like Ford, General Motors, and Stellantis only discuss tiny programs starting in 5 years with unworkable demands. One analyst (Melius Research, via Barron’s) argues that hundreds of billions in value could accrue to Tesla if its autonomy lead holds, an opinion, not a verified outcome.

FSD licensing tepid interest

The hesitation to license FSD is a change from Musk’s offer in June 2023 to license the technology. The primary roadblock is the “unworkable requirements” that automakers demand, making deals pointless.

Musk named some automakers as reluctant companies. Speculation about an agreement with a major automaker peaked in April 2024, but it was not finalized at the time.

Cost and subscription for FSD

Even though FSD licensing has stalled, Tesla continues to update the system for its own customers. FSD, now called FSD Supervised, is available for $99.00 per month.

The latest software update, version 14.2, began a limited rollout on Friday, November 21, 2025. To try the 30-day trial, owners must have software version v12.3 or later installed in their cars.

Legacy Auto’s internal systems

A key reason for the reluctance is that carmakers are committed to their own self-driving systems. Ford CEO Jim Farley publicly rejected FSD in 2024, stating that the rival system Waymo is better.

Farley cited the importance of laser sensors, known as LiDAR, which Tesla does not use. GM’s Super Cruise is a similar system that is factory-installed on many 2025 vehicles.

FSD’s regulatory roadblocks

The FSD technology faces regulatory challenges outside the U.S. On Monday, November 24, 2025, Tesla announced that the Dutch vehicle authority, RDW, stated that no approval is guaranteed; a decision could come in February 2026, pending safety validation, and the company asked the public not to contact the agency about the case.

However, the RDW immediately denied this, confirming only that a demonstration schedule was agreed upon. The agency also requested that the public refrain from contacting them about the application.

Unsupervised FSD and the final piece

Despite the regulatory issues, Musk continues to push for full autonomy. On Friday, Nov. 21, 2025, Musk posted on X that FSD version v14.3 is “where the last big piece of the puzzle finally lands.”

Earlier, during a call on Wednesday, October 22, 2025, he stated that Robotaxis in Austin would become completely driverless by the end of 2025.

Competitors’ mapped highway coverage

Other carmakers rely on pre-mapped highways to keep their hands-free systems safe. GM’s Super Cruise now covers about 750,000 miles of compatible highways in the U.S. and Canada.

Ford’s BlueCruise covers a more limited 130,000 miles of its “Blue Zones.” GM announced this major highway expansion on Thursday, Feb. 15, 2024, with new roads continuing to be added through the end of 2025.

FSD vs. Super Cruise cost model

The subscription cost is another significant difference between the systems. Tesla FSD is $99.00 per month. GM’s Super Cruise requires an ongoing subscription after a trial that typically lasts 3 years.

The OnStar One plan, which includes Super Cruise, is priced starting at $64.99 per month plus tax. This lower monthly cost is appealing to many drivers.

Sensor tech: vision vs. LiDAR battle

The use of different sensor technology is a core barrier to sharing. Tesla utilizes a camera-only ‘Tesla Vision’ sensor suite (no lidar), rather than the multi-sensor stacks used by some rivals.

Other companies employ a multi-sensor approach that combines LiDAR and radar. For example, the BMW 7 Series Level 3 system utilizes a 3D LiDAR sensor, which enables the system to operate reliably even in low-light conditions.

NACS licensing shows willingness

Automakers are willing to license some Tesla technology, just not FSD. For instance, they have accepted Tesla’s North American Charging Standard, or NACS.

Ford was the first major U.S. automaker to announce its adoption of NACS on Friday, May 26, 2023. The Volkswagen Group followed on Tuesday, Dec. 19, 2023. Both companies will use the NACS port starting with the 2025 model year.

Competition reaching Level 3 autonomy

The carmakers are pushing toward Level 3 autonomy, a system where the driver can safely take their eyes off the road for brief periods.

BMW received regulatory approval for its Personal Pilot L3 system in Germany for the BMW 7 Series in March 2024. This system can operate at speeds up to 60 kilometers per hour, or 37 miles per hour, on major motorways.

Want to see how Tesla is improving what drivers see on screen? Read more in Tesla places Unreal Engine to enhance FSD visualizations.

Future of Tesla’s autonomy revenue

Since licensing FSD has not worked out, Tesla is changing its focus to its own services. Analysts once estimated FSD could generate $100 billion in yearly revenue by 2030 if it were widely licensed.

Instead, Tesla is now focusing on launching a network of autonomous Robotaxis by the end of 2025. The company is preparing a new vehicle platform specifically for this driverless ride-hailing service.

Curious what the newest version of Tesla’s self-driving system can do? Check the details in Tesla rolls out FSD supervised v14 with major self-driving upgrades.

Does this signal doubt about Tesla’s tech or just bad timing? Share your thoughts below.

Read More From This Brand:

• U.S. regulators investigate Tesla’s ‘Mad Max’ driver-assistance mode in FSD
• Tesla faces federal probe into 2.9 million vehicles over FSD traffic-violation reports
• Tesla Model Y completes 13,577-km Australia lap with FSD Supervised under driver oversight

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This slideshow was made with AI assistance and human editing.