<div id="readability-page-1"><p>It seemed like a good idea at the time for electric vehicle giant Tesla (TSLA). Develop a program that allows cars to drive themselves, and then license it out to all those other car companies who did not spend all that time and cash to develop their own. The problem, however, is that those potential customers want their own instead. This revelation sent Tesla shares sliding, down nearly 3% in Tuesday afternoon's trading.</p><h3>Claim 50% Off TipRanks Premium</h3><ul><li>Unlock  hedge fund-level data  and  powerful investing tools  for smarter, sharper decisions  </li><li> Stay ahead of the market with  the latest news and analysis  and maximize your portfolio's potential</li></ul> <p>Ford (F) reached out in a recent report, with its head of electrical engineering Paul Costa spelling out just why licensing Tesla's Full Self-Driving (FSD) program is a bad idea. &#34;To integrate, I can't do this with all these suppliers. We need to bring this stuff in-house, and it allows for this ability to do the trifecta at once: smaller, cheaper, and higher performance.&#34;</p> <p>So while there are significant challenges to &#34;going in-house,&#34; these automakers are also able to better customize their own self-driving systems to their market's requirements. Some may want to use a LIDAR-based system. Others might prefer to go with cameras. If they licensed FSD, they would have to do it Tesla's way. Building their own, meanwhile, allows them to play to their own strengths. Plus, developing systems that can confer with each other as required is actually cheaper to do when the whole thing is house-built.</p> <h2><strong>Big in South Korea</strong></h2> <p>Meanwhile, new reports noted that Tesla is an absolute winner in South Korea, being responsible for much of the country's electric vehicle sector growth in 2025. As it turns out, registrations for Teslas were up over 50% in 2025, and electric vehicle penetration overall cleared the 10% mark for the first time in the country.</p> <p>It turns out that the Model Y, which is built in the Shanghai Gigafactory, is an easy import from Shanghai to South Korea. In fact, the Model Y actually accounts for 26.6% of the pure electric passenger vehicle market, reports note.</p> <h2><strong>Is Tesla a Buy, Hold or Sell?</strong></h2> <p>Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 12 Buys, 11 Holds, and seven Sells assigned in the past three months, as indicated by the graphic below. After a 3.17% rally in its share price over the past year, the average TSLA price target of $397.47 per share implies 6.38% downside risk.</p></div>

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<p>Tesla's stock (NASDAQ: TSLA) fell nearly 3% after it was revealed that potential customers prefer to develop their own self-driving systems rather than license Tesla's Full Self-Driving (FSD) program. Ford's head of electrical engineering emphasized the need for automakers to bring self-driving technology in-house for better customization and cost efficiency. Despite this setback, Tesla saw a 50% increase in registrations in South Korea, with the Model Y dominating the electric vehicle market. Analysts currently rate TSLA as a Hold, with an average price target suggesting a 6.38% downside risk.</p>

- Tesla's plan to license its self-driving technology to other car manufacturers faced setbacks as these companies prefer to develop their own systems for better customization.  
- The electric vehicle giant is witnessing strong growth in South Korea, with Tesla registrations rising over 50% in 2025 and contributing significantly to increased electric vehicle adoption.  
- Currently, Wall Street analysts rate Tesla's stock as a Hold, with a projected price target indicating a potential decline of 6.38%.

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"We Need to Bring this Stuff In-House": Tesla Stock (NASDAQ:TSLA) Sinks After Discovering Why FSD Is Not Prized