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Tesla Might Open Up Automotive Operating System to Other Automakers, Says Elon Musk

During a Twitter Spaces with Ford CEO Jim Farley, Elon Musk suggested that Tesla could potentially make some of its automotive operating system code open source to other automakers. Musk stated that they would be happy to “be helpful on the software front” and that this move would put Tesla in direct competition with Google and Apple who have already developed automotive operating systems. Musk made the comment while talking about Tesla and Ford’s milestone agreement. Under the deal, Ford’s EV customers will get access to the Tesla Supercharging network in the US and Canada and, more importantly, Ford has agreed to incorporate Tesla’s charging port into its second generation of EVs starting in 2025.

Potential Supply Chain Partnerships

Musk and Farley also discussed potential partnerships in the supply chain. The Ford CEO questioned Musk about Tesla’s new Corpus Christi lithium refining plant, and Musk repeated his previous concerns about there being a lack of entrepreneurs in the US digging into raw materials mining and processing. He said that the company has a nickel-based cathode refinery in Austin and may also have to get involved in anode manufacturing, but “hopefully not.” Musk noted that there will be a huge market for synthetic graphite, which is the main material in most lithium-ion anodes.

Competition with Google and Apple

If Tesla takes the step of commercializing its over-the-air updatable software to other vehicles, it will compete with Google and Apple. Google offers automakers Android Automotive OS, which is modeled after its open source mobile operating system that runs on Linux and is modified for use in cars. Apple also announced last year that its next-gen CarPlay aims to power a vehicle’s entire instrument cluster. Both tech companies provide middleware that connects a user’s phone to a car’s infotainment system.

Ford’s Aim to Unseat Tesla

Ford, like other legacy automakers, is still aiming to unseat Tesla as the No. 1 seller of EVs in the US. In 2022, Ford sold 61,575 electric vehicles in the U.S. Tesla sold 1.3 million EVs globally, although it doesn’t break down sales by country. Over the past two years, Ford said it lost about $3 billion on its EV and digital services business, a unit now known as Model e. The company doesn’t expect Model e to be profitable until late 2026 with an 8% operating profit margin. Ford’s traditional gas-powered engine units were profitable enough to offset those losses. In terms of production, Ford aims to reach 600,000 EV units by the end of 2023 and 2 million by the end of 2026. Tesla said it wants to hit a 50% compound annual growth rate in 2023 that should see the automaker produce 1.8 million cars.

A Friendly Relationship

Musk and Farley have remained friendly despite competing against each other. Musk praised the automaker in the past, noting on several occasions that only Tesla and Ford have avoided bankruptcy.

Conclusion

During a Twitter Spaces conversation, Elon Musk suggested that Tesla could potentially open source some of its automotive operating system code to other automakers. This move could put Tesla in direct competition with tech giants Google and Apple who have already developed automotive operating systems and middleware products. Musk also hinted at potential supply chain partnerships with Ford CEO Jim Farley, who questioned Musk about Tesla’s new Corpus Christi lithium refining plant. Despite competing against each other, Musk and Farley have remained friendly and looking towards the future.

FAQs

What did Elon Musk suggest during the Twitter Spaces conversation with Jim Farley?

Elon Musk suggested that Tesla could potentially open source some of its automotive operating system code to other automakers.

What would Tesla’s move to open source its code mean for the company?

This move could put Tesla in direct competition with tech giants Google and Apple who have already developed automotive operating systems and middleware products.

What was the milestone agreement between Tesla and Ford?

Under the deal, Ford’s EV customers will get access to the Tesla Supercharging network in the US and Canada and, more importantly, Ford has agreed to incorporate Tesla’s charging port into its second generation of EVs starting in 2025.

What did Ford CEO Jim Farley question Elon Musk about?

Jim Farley questioned Musk about Tesla’s new Corpus Christi lithium refining plant and potential supply chain partnerships between the two companies.

What is Ford’s aim regarding EV sales and production?

Ford is aiming to unseat Tesla as the No. 1 seller of EVs in the US. In terms of production, Ford aims to reach 600,000 EV units by the end of 2023 and 2 million by the end of 2026.

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