The unusual move comes with Tesla enjoying huge success, but against a backdrop of multiplying legal squabbles among technology firms over patents.
"All our patents belong to you," Tesla chief executive Elon Musk said in a blog post.
"Yesterday, there was a wall of Tesla patents in the lobby of our Palo Alto headquarters. That is no longer the case. They have been removed, in the spirit of the open source movement, for the advancement of electric vehicle technology."
"We believe that Tesla, other companies making electric cars, and the world would all benefit from a common, rapidly-evolving technology platform," he wrote.
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But he said this turned out not to be the case.
"The unfortunate reality is the opposite: electric car programs (or programs for any vehicle that doesn't burn hydrocarbons) at the major manufacturers are small to non-existent, constituting an average of far less than one percent of their total vehicle sales."
Tesla earlier this year unveiled plans for a so-called "Gigafactory" for advanced electric car batteries as part of a plan to move from niche manufacturer to mass market carmaker.
The company says it hopes to bring the cost of production down and produce 500,000 cars a year.
Tesla, which makes a USD 75,000 sedan in heavy demand from well-heeled buyers, saw shares quadruple last year on expectations of surging growth.