According to Sawyer Merritt, legacy automakers face significant challenges in adopting profitable electric vehicles (EVs) and advancing AI-driven self-driving technology. Many are reverting to gasoline models to maintain short-term profitability, which may hinder future investment in autonomous vehicle capabilities—an area increasingly dominated by AI software. Ford's development of its 'Universal EV Platform', aiming for a 2027 release, is intended to lower costs, but its success remains uncertain (source: Sawyer Merritt on Twitter, Dec 29, 2025). The industry's lag in software expertise, including in-car UI and continuous updates, puts legacy manufacturers at a disadvantage against newer entrants with advanced AI and software capabilities. This scenario is expected to drive consolidation within the auto sector, with increased business opportunities for tech companies providing AI-driven autonomous solutions.

According to Sawyer Merritt on X, Elon Musk stated that legacy automakers have not demonstrated genuine interest in licensing Tesla's Full Self-Driving (FSD) technology. Musk explained that when traditional automakers occasionally approach Tesla, they only propose limited pilot programs with unrealistic requirements and long timelines, making meaningful AI-powered automotive partnerships unlikely for now (source: x.com/elonmusk/status/1993035990462795922). This reluctance from established automakers highlights challenges in industry-wide adoption of advanced autonomous driving AI, potentially delaying mass-market deployment of self-driving solutions and slowing AI-driven transformation within the automotive sector.