Tesla's FSD Licensing Potential: GM Shifts Focus, BMW Shows Interest

In a significant shift within the automotive industry, General Motors (GM) has announced its decision to close its autonomous vehicle division, Cruise, and redirect its efforts towards advanced driver assistance systems (ADAS). This move comes amid increasing competition in the robotaxi market and highlights a growing recognition of Tesla's approach to full self-driving (FSD) technology.

Key Takeaways

• GM is shutting down Cruise to focus on Super Cruise, an ADAS feature.

• The company cites competition and profitability challenges in the robotaxi market.

• Tesla's FSD technology is gaining attention from other manufacturers, including BMW.

GM's Strategic Shift

In a surprising announcement, GM revealed that it is realigning its autonomy strategy. The company will be closing its Cruise division, which has been focused on developing fully autonomous vehicles, and instead will concentrate on its Super Cruise feature, which offers advanced driver assistance.

GM's decision stems from the challenges posed by an increasingly competitive robotaxi market. The company acknowledged that considerable time and resources are required to scale the autonomous vehicle business to a profitable level, a feat they are currently unable to achieve.

The End of Cruise

Cruise has been operational in several cities, providing driverless rides using high-definition mapping and a complex array of sensors. However, the division has struggled to turn a profit while collecting data to advance its autonomous capabilities. The last major update from Cruise was in 2019, indicating a stagnation in progress.

Acknowledging Tesla's Strategy

During a recent business call, GM executives admitted that Tesla's end-to-end, vision-based approach to autonomy is the right strategy for the industry. While Cruise initially pursued a similar path, GM has decided to prioritize ADAS features that enhance driver safety and reduce stress, rather than fully autonomous driving.

Despite the positive intentions behind Super Cruise, the system has limitations. It cannot handle traffic controls, is ineffective in adverse weather conditions, and is restricted to HD-mapped highways, which limits its functionality compared to Tesla's FSD.

BMW's Interest in FSD

In a notable development, BMW has expressed admiration for Tesla's FSD technology. A now-deleted post from the company praised a demonstration of FSD, indicating that other manufacturers are closely watching Tesla's advancements. At Tesla's recent We, Robot event, the company showcased its Cybercab and plans for a Robotaxi network, set to launch in 2025.

Elon Musk revealed that several manufacturers have reached out to Tesla to explore licensing FSD technology, suggesting that 2025 could see significant announcements regarding the adoption of FSD by legacy automakers.

The Future of Autonomous Driving

As GM pivots away from fully autonomous vehicles, the spotlight is increasingly on Tesla and its FSD technology. The potential for licensing FSD to other manufacturers could reshape the landscape of autonomous driving, similar to the recent adoption of Tesla's North American Charging Standard (NACS) by various companies.

The automotive industry is at a crossroads, with traditional manufacturers reassessing their strategies in light of Tesla's innovations. As the competition heats up, the focus on advanced driver assistance systems and the pursuit of full autonomy will continue to evolve, shaping the future of transportation.