Tesla’s plan to share all of its self-driving capabilities with original equipment manufacturers has Wall Street analysts talking. During an earnings call Wednesday night, CEO Elon Musk said the company was in talks to share its technology with original equipment manufacturers — and was in preliminary talks with an anonymous company. “We are very open to licensing our comprehensive self-driving software and hardware to other automakers, and we are already in discussions with – preliminary talks with a major OEM on using Tesla FSD,” he said. “So we’re not trying to keep that to ourselves.” Tesla Mountain TSLA 1D Shares Drop After Q2 Earnings Shares fell 7%. Despite these short-term margin issues, Morgan Stanley’s Adam Jonas pointed to FSD’s comment as his biggest takeaway from the call. He did, however, point to some logistical concerns, including whether Tesla would need “greater involvement” in the full software system of its peers. “In our view, vehicle autonomy lends itself to a win-win/win-win-most regional/local outcome,” Jonas said. “A potential license from FSD would represent a significant shift in scope in how investors measure TAM for Tesla.” These FSD aspirations tap into the latest artificial intelligence craze that has overtaken Wall Street, with Goldman Sachs analyst Mark Delaney seeing it as a key debate for investors in the medium term. The analyst, who holds a neutral rating on the stock, sees Tesla as well positioned in AI due to the “breadth and depth” of its engineers and data pools, but expects that these FSD aspirations take time. Evercore ISI’s Chris McNally called Tesla’s FSD capabilities the “next hot topic” but said there was a “very high bar” for the “yet unproven” path for autopilot software. . “Management continues to sow the seeds for future growth by prioritizing units over volume – sacrificing near-term gross margin with the plan to penetrate existing vehicles with high-value, high-value FSD software. margin over time,” said George Gianarikas of Canaccord Genuity. – CNBC’s Michael Bloom contributed reporting
The one piece of news from Tesla’s earnings report that’s got analysts buzzing
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