Elon Musk Sells Powertrains, Batteries, and Software to his Rivals

Elon Musk has confirmed on his Twitter account that Tesla is open to selling its technology to rivals to accelerate the mobility transition. He responded to an article on the Teslarati portal where it was talking about the difficult time for German manufacturers regarding software and its delay in aspects such as batteries and electric propulsion systems. Musk indicated that “Tesla is open to carrying out software licenses and the supply of propulsion systems and batteries. We are trying to accelerate sustainable energy, not crush competitors!”

Without a doubt, this movement would allow traditional brands to be able to take a significant leap forward in aspects such as the efficiency of their propulsion systems, which currently forces them to install large-capacity batteries to achieve autonomies that even in this way are located by below the Tesla models.

Greater efficiency would also impact the economy, since more can be manufactured with less, improving the packs’ energy density without affecting autonomy.

The big winner of this would be Tesla again, which would become a supplier of key elements such as engines, batteries, and above all the desired software. Where they have been working for more than ten years can now get more out of their installation in cars of the competition. In this way, Tesla would be able to increase its revenue stream with the rights to use these technologies, recovering a good part of how much they have invested in recent years.

But undoubtedly, the big beneficiaries of this type of agreement would-be consumers, who would not have to choose between quality of construction, after-sales service, and technology. And it is that although Tesla is far ahead in software and electrical system, it is far behind in quality of materials, assembly, and above all in order of shops and technical services with a very improvable operation.

It would also have an important impact in terms of reducing emissions since by joining forces with Tesla and large groups; it would be possible to improve the current proposal for the electric car market. Which in turn will inevitably bring with it higher sales and more competition for diesel cars and gasoline. Something that results in less polluting vehicles on our streets.

Aspects to which we can add a possible opening of Autopilot licenses, which is another of Tesla’s significant advances, and that would significantly increase road safety.

A situation that could be shocking from the industrial and commercial point of view for Tesla is missing a technological advantage, but that would fit the objective that we can read on the page of the American manufacturer of “accelerating the world’s transition to sustainable energy.”

Now it remains to be seen what this announcement will be transformed into, and whether Tesla will convince the large groups to use its technology, or will they prefer to continue on their path and seek to improve their systems internally as they did in 2014 when Tesla announced the release of its patents. A move that was not followed by large groups.

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