Elon Musk willing to offer Tesla’s EV tech to Audi
Musk has declared that the company is willing to license its software and provide batteries and powertrains to other manufacturers. The Tesla CEO stressed in a tweet that the company is simply “trying to accelerate sustainable energy, not crush competitors”.
Licensing revenue is income generated by a company through allowing its copyrighted or patented material to be used by another one.
Throughout his tenure as Tesla CEO, Musk maintained that the company’s main goal is to accelerate the advance of sustainable transport.
If competing companies take up Musk’s offer, this could potentially have huge ramifications to Tesla’s bottom line. This will hugely boost the company’s revenues without having to increase production quotas. Needless to say, this will also drive up Tesla’s stock, which has already reached record numbers during 2020.
Not an unusual step
This is not the first time that Tesla has offered to license its products to direct competitors. In 2018, Musk entertained the idea of allowing manufacturers to access Tesla’s supercharger network. Even back then, the Tesla CEO argued that the EV industry is “not a walled garden”
Companies brushed off the idea, suspecting that the licensing fee involved could prove to be very exorbitant.
Why make such an announcement yet again?
Elon Musk didn’t simply make such an announcement out of the blue. It comes in light of Audi’s CEO Markus Duesmann latest assessment of the German manufacturer’s EV performance.
Automotive News reported that Duesmann conceded that Tesla is well ahead of all competitors when it comes to EVs.
The Audi CEO admitted that Audi is two years behind Tesla in terms of computing power of its vehicles. The same goes for the German manufacturer’s self-driving technology, and software architecture as a whole.
In conclusion, when you look past Musk’s shenanigans on Twitter, you will see a very shrewd, yet environmentally conscious businessman.
It remains to be seen if Musk’s latest push for licensing Tesla’s products will pan out or not. If it does, Tesla, alongside consumers, and the environment itself, stand out to win big time!