“My concern is that the problems with AI could spread to the entire group, putting otherwise strong businesses at risk,” he added. “SpaceX’s success must be protected, not used to fund an ever-widening set of ambitions.”
Whether the companies merge or not, Tesla’s technological ambition is already attracting the attention of its traditional rivals.
The Flying Roadster “certainly shows that even in the automotive world there is a lot to do,” Ferrari CEO Benedetto Vigna said at a recent automotive conference in Milan.
Tesla is already driving broader changes in the industry. Like Musk’s company, China’s Xpeng, South Korea’s Hyundai and Japan’s Toyota are expanding their robotics businesses, while General Motors and Ford in the United States seek new revenue from their energy storage businesses.
Autonomous driving in particular has become a major battleground for the global auto industry as electric vehicles with similar ranges and prices proliferate.
Tom Narayan, an analyst at RBC Capital Markets, said Tesla was “a classic case of one innovator revolutionizing and the other following because they don’t want to be left behind.”
Among traditional automakers, General Motors last year hired former Tesla executive Sterling Anderson to oversee product development for the Detroit automaker, with a mandate to develop a new generation of fully autonomous personal cars.
Other European automakers, such as BMW and Mercedes-Benz, have also partnered with technology groups such as Qualcomm and Nvidia to offer a “Level 2 plus” driver assistance system, which requires active supervision by a human driver behind the wheel.
“Major automakers today… are trying to completely reconsider their strategy,” said Igal Raichelgauz, CEO of Israeli self-driving technology company Autobrains. He added that manufacturers wanted to move to a subscription model with more advanced observation technology to generate new revenue.
Volvo Cars CEO Håkan Samuelsson acknowledged Tesla’s position as a leader in autonomous technology.
“Tesla is probably leading development in the West,” he told the Financial Times, while stating that Volvo was still firmly leading the software. “Together with Nvidia, we will develop our cars to be door-to-door automated and that will be available very soon in a new Volvo car.“
Additional reporting by Mari Novik in London.
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