The stock gained 1.42% a day after the news was made public.
While some were suspicious about CEO Elon Musk’s motive behind sharing the patents with competitors, most of the people responded favorably to the news.
It is a well known fact that Tesla aims to facilitatethe transition of the automobile market to environment-friendly electric vehicles.
This was cited as the main reason for opening the company’s patents to all.
According to Musk, Tesla had initially acquired patents to protect itself from larger automobile manufacturers.
However, as most automobile companies do not give priority to electric cars due to the latter’s low market share, Tesla is now offering to share its technology in the hope that it will boost development of electric cars.
While many large automakers produce electric cars, they are of a limited range, thereby resulting in low popularity.
In comparison, Tesla’s cars have a broader range, while its Supercharger network provides fast and cost-free battery charging.
Thus, auto manufacturers might benefit from using Tesla’s technology to increase their electric cars’ range.