An analysis of Tesla's patent applications shows a slower pace of innovation over the past two years and a shift toward AI hardware and software as Elon Musk focuses on autonomous driving and robotics.
See also: Tesla's US sales drop below 40,000 units
There is an ongoing debate about whether Tesla should be considered a carmaker or a technology company. While critics point to declining car deliveries and profit margins, supporters point to autonomous driving and robotics as the next phase of growth.
Critics are right that car sales still make up the majority of Tesla's revenue and profits, which have been steadily declining over the past two years.
A future where Tesla's investments in AI replace its declining auto industry remains hypothetical, but there is some data to support Tesla's shift.
A new analysis of Tesla’s patent filings over the past decade provides an objective look at where the company is directing its R&D efforts. The data reveals a significant shift, with Tesla’s automotive business declining in patent filings, first replaced by an increase in manufacturing innovations and then by applications related to AI hardware and software.
See also: Tesla misled customers about Autopilot capabilities
The dataset includes approximately 4,200 patent applications from 2014 to 2024. When mapped, two distinct peaks emerge, illustrating the company's shift towards AI.
The new dominant category is AI hardware and software, which includes everything from new theories and processes for autonomous driving to new AI computing hardware, such as Tesla's AI4 computer in its vehicles.
AI contributed to the first peak in 2018 as Tesla expanded work on Autopilot and Full Self-Driving (FSD), but it was only in the 2020s that it began to represent the majority of Tesla's patent applications.
Tesla's portfolio is now 40% AI-related, reflecting a surge in applications related to AI technologies. This confirms that Tesla CEO Elon Musk has shifted the automaker's focus to AI at the expense of its automotive business.
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Data from 2023 and 2024, which are still being collected due to publication delays, point to the next turning point. While there are still a few automotive-related patents, such as those related to wireless charging, they now represent a small minority. Even wireless charging for EVs can be considered part of the AI category, as autonomous vehicles will need such technology if there are no humans to connect them.
