BMW’s surprising about-face regarding Tesla’s Full Self-Driving (FSD) system has sent ripples through the automotive and tech worlds. Just hours after posting effusive praise for the system’s performance on X (formerly Twitter), BMW quietly deleted the tweet, leaving investors and industry analysts scrambling for answers. The original post, which described version 13 of Tesla’s FSD as “very impressive,” had ignited speculation about a potential licensing agreement between the two automotive giants.
The swift deletion didn’t go unnoticed. Tesla CEO Elon Musk himself responded to the removal, commenting with a touch of irony, “Too bad, that was one of their best posts!” This seemingly casual remark hints at the significance of BMW’s initial endorsement, and the potential ramifications of its retraction. The deleted comment had raised hopes that BMW might eventually license FSD for its vehicles, a move that could dramatically reshape the landscape of autonomous driving technology.
The potential for such a partnership is significant. Gary Black, managing partner at The Future Fund and a well-known Tesla bull, stated on Tuesday that he anticipated Tesla would eventually sign an FSD licensing deal with another manufacturer. He even suggested that such a deal could trigger a domino effect, with other automakers following suit and analysts subsequently factoring licensing revenue into their Tesla models and price targets. While the timing of such a deal remains unknown, the possibility alone has considerable market influence.
This incident is particularly intriguing given Tesla CEO Elon Musk’s previous statements regarding FSD licensing. Earlier this year, Musk expressed Tesla’s willingness to license its technology to other automakers. However, in January, the company clarified that it hadn’t finalized any such agreements, despite some exploratory conversations. Musk attributed the lack of licensing deals to rival automakers’ perceived skepticism about the reality and effectiveness of Tesla’s FSD technology. He even went so far as to say that if he were CEO of another car company, he would “definitely be calling Tesla and asking to license Tesla’s full self-driving technology.”
The mystery surrounding BMW’s sudden about-face raises many questions. Was the initial praise premature? Did internal concerns or unforeseen technical challenges lead to the post’s removal? Or might there be other strategic factors at play that remain undisclosed? Regardless of the reasons, this episode highlights the intense competition and rapid advancements in the development of autonomous driving technology, and the high stakes involved in its commercialization and adoption.
