Tesla Motors Offers Open Licenses to Its Patents
Tesla Motors Inc. is offering the proprietary technology at the heart of its Model S electric car to any company that wants to build vehicles, and its chief suggested BMW AG already is interested in sharing certain patents, reported The Wall Street Journal.
Chief Executive Elon Musk said during a conference call on Thursday the offer is intended to help spur wider development of electric vehicles. Mr. Musk said one topic discussed with BMW executives was sharing Tesla's technology for rapidly recharging batteries, part of the company's "supercharger" stations.
The Palo Alto, Calif., maker of $71,000 and up luxury electric cars decided to offer open access to Tesla patents out of frustration that electric vehicles remain less than 1% of new cars and light trucks sold each year.
BMW couldn't be reached for immediate comment.
Mr. Musk also hinted at another reason for the offer: achieving greater economies of scale. For example, Tesla's patents for its vehicle Supercharging stations could be shared with other auto makers, which could help Tesla spread costs and more quickly make more stations available.
More manufacturers should use small battery cells, as Tesla does, Mr. Musk said. "That would be one thing I would recommend." He has outlined plans to build a large battery factory, which he calls the gigafactory, to produce more battery packs in the U.S.
Tesla has "several hundred" patents related to all areas of its electric vehicles, Mr. Musk said, including batteries and electric control systems. Tesla isn't worried a competitor could use its patents to undercut the company, he said.
"We wouldn't someone to mimic our car to…trick people into thinking it's our car when it's not," Mr. Musk said. The company expects to continue to file patent applications, but won't enforcing its patents.
"If a company is truly relying on patents it means they aren't innovating, or not innovating fast enough," he said. "But this can be of some modest help to others."
Mr. Musk said he initially received some "wide-eyed looks" from members of his board of directors and other managers. He said open sourcing its technology can help attract top engineering talent who want to see their inventions spread and not just be bottled up into one company.
"This is actually good for Tesla and the electric vehicle industry. I really do believe that," he said.
Mr. Musk teased Thursday's announcement as a controversial move. But after promoting his decision, he described it on Thursday as "a modest thing." Patents, he said, shouldn't be so important. "You want to be innovating so fast [that] you invalidate your prior patents."
The auto industry has had its share of epic intellectual property fights, including a battle in the industry's earliest years over who held patent rights to the idea of the automobile. During the 1970s, General Motors Co. shared its breakthrough in developing the catalytic converter, which scrubs smog-forming pollutants out of exhaust.
More Industry

Ownership Priorities are Shifting
A new survey shows that in the U.S. vehicle quality for generation Z is largely defined by advanced safety features, intuitive technology and premium sound systems.
Read More →
Pump Price Jump Calculated
ISeeCars.com examined fuel costs for different power trains, finding which ones have experienced the biggest hits since the war in Iran commenced.
Read More →
Black Book: Weekly Market Update
Wholesale values fell last week despite the spring season still being in the traditional full-gear mode, analysts said.
Read More →
Arkansas Auto Group Acquires First Indiana Rooftop
Performance Brokerage Services represented both the buyer and seller in the sale of Carver Toyota of Columbus by Carlock Automotive Group.
Read More →
Stellantis to Dive Into U.S. Lending
The multinational maker of Chrysler, Dodge, Jeep, Ram and multiple other brands received conditional approvals for a Utah-based industrial bank.
Read More →
New-Vehicle Prices Rise
With April sales down, higher prices on in-demand large vehicles helped inflate the overall ATP, though increases were under long-term averages, Cox Automotive reported.
Read More →
Black Book: Weekly Market Update
Last week in the wholesale automotive market proved to be a mixed bag, analysts reported.
Read More →
Black Book: Weekly Market Update
Conversion rates were flat last week at 63%, Black Book analysts calculated, as low-mileage and almost-near units outpaced the overall market.
Read More →
EU Auto Association Urges Action
Trade relations between the European Union and the U.S. are at risk, causing the European Automobile Manufacturers Association to push lawmakers to make a decision.
Read More →
Driving into the Super CFC Era
Understanding the risks and benefits of retail accounting and Super CFCs can help you better present options to your dealer partners.
Read More →