agent Entrepreneur logo
MenuMENU
SearchSEARCH

Tesla Motors Offers Open Licenses to Its Patents

June 12, 2014
3 min to read


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.

Ad Loading...


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.

Ad Loading...


"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."

Ad Loading...


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

Blue and white RV parked on beach facing the ocean.
Industryby Lauren LawrenceSeptember 3, 2026

RV Group Expands Carolina Footprint

Blue Compass RV Columbia Northeast is the 13th RV dealership owned by Blue Compass in the Carolinas.

Read More →
Photo of two men and one woman on a discussion panel
Industryby Hannah MitchellSeptember 1, 2026

Agent Acumen

An Agent Summit panel of people who’ve been supporting auto dealers for years gave both timely and timeless advice for those starting out or mulling the prospect.

Read More →
Gloved hand holding two wrenches next to “Turn Overdue into Opportunity” Graphic
Industryby Lauren LawrenceAugust 27, 2026

Missed Maintenance Creates Opportunity

As families get back on the road and into daily school routines, service drives have an opportunity to capture customers who are behind on recommended vehicle maintenance.

Read More →
Ad Loading...
Mitsubishi shadow line-up
Industryby Hannah MitchellAugust 25, 2026

Mitsubishi Unveils U.S. Plan

The automaker announced a strategy that includes an expanded lineup and dealership presence, along with more ‘rugged’ and electric models.

Read More →
Photo of a laptop, cellphone and eyeglasses on a desk next to an office window
IndustryAugust 24, 2026

Selling to Grow

The question of whether you should sell your agency and if so, when, is up to you. But it’s a question worth asking to ensure you keep the business on the right path for yourself, employees and clients.

Read More →
Mechanic holding a vehicle diagnostic device while standing above an open car hood
Industryby Hannah MitchellAugust 24, 2026

Recalled Vehicles Hit 5-Year High

Though the number of events has fallen so far this year, impacted units are up significantly. Meanwhile, regulators consider consumer notification changes.

Read More →
Ad Loading...
outside of car dealership with cars parked in front
Industryby Lauren LawrenceAugust 20, 2026

Auto Group Acquires Top-Performing Rooftop

Car Pros sold its Kia Huntington Beach location to Sutherlin Automotive Group, marking the buyer’s third location in Southern California.

Read More →
Cars from the rear on a Shanghai freeway
Industryby Hannah MitchellAugust 19, 2026

China as Pacesetter

Automotive leaders huddled on where North America stands in the global picture and how it can strengthen its position against the Asian juggernaut’s surging industry.

Read More →
Orange BMW car on empty road.
Industryby Hannah MitchellAugust 14, 2026

BMW Concept Car Makes Fuel to Burn

The prototype developed in concert with a South Carolina university engineering team generates more solar energy than it uses in a typical daily commute.

Read More →
Ad Loading...
Six men standing for photo outside of car dealership
Industryby Lauren LawrenceAugust 13, 2026

South Carolina Auto Group Downsizes

Florida-based group Holler-Classic has acquired four rooftops, its first in South Carolina, from Dick Smith Automotive Group.

Read More →
Ad Loading...