Tesla CEO Elon Musk disclosed that a “major” original equipment manufacturer (OEM) has expressed keen interest in licensing both the software and hardware that the electric vehicle (EV) giant is currently developing for full vehicle autonomy.

During the second-quarter earnings call, Musk stated, "We are already in early discussions with a major OEM about using Tesla Full Self-Driving (FSD). We're not trying to keep this to ourselves. We're more than happy to license it to others."

Currently, Tesla's FSD software and hardware are not intended to enable fully autonomous driving as it is still classified as a SAE Level 2 semi-autonomous driving feature, which requires human drivers to always remain in control.

Addressing the scepticism surrounding Tesla's FSD capabilities, Musk acknowledged past criticism for repeatedly predicting the software's imminent achievement of autonomous capability. However, he reaffirmed his conviction that FSD will be able to drive autonomously as safely as a human driver by the end of the current year.

It's worth noting that other carmakers have their own advanced driver-assistance systems, some of which have received higher praise from industry experts compared to Tesla's FSD.

A handful of these systems even offer hands-free driving capabilities, such as Mercedes-Benz’s Drive Pilot system, which Tesla's FSD does not currently provide. Nonetheless, none of these systems have achieved full autonomy.

Also read: Mercedes-Benz is first to legally introduce L3 autonomous driving in Tesla's home ground, California

In recent news, Tesla has been opening its Supercharger network to non-Tesla vehicles and grant access to its proprietary charging connector, known as the North American Charging Standard (NACS), for free.

Brands such as Ford, General Motors, Volvo, Mercedes-Benz, and Nissan have already inked agreements to utilise Tesla's Supercharger network, beginning next year, while adopting the NACS connector in their EVs.

Also read: Nissan is first Japanese carmaker to plug in to NACS ports; Ariya EV to access Tesla Superchargers

Drawing parallels with the Supercharger sharing initiative, Musk suggested a potential future scenario where other car manufacturers might gain access to Tesla's FSD technology. However, he highlighted a key difference, stating that Tesla does not charge licensing fees for the use of the NACS connector, as it is an open standard.

Also read: Access to Tesla's Superchargers granted to Mercedes-Benz customers in North America

During the earnings call, Musk also highlighted Tesla's commitment to prioritise volume growth over immediate profits. While the company might be sacrificing some short-term gains, Musk believes that future FSD software sales to Tesla owners will lead to higher profitability for the company.

Also read: Tesla is now officially in Malaysia, what's their plan moving forwards?