You seem to be assuming that the limiting factor is cost and parts. To me it appears the limiting factor is software. AIUI no one has the software to do level 4 autonomous driving, at any price. So why would a parts supplier end up "ruling" automatic driving?
I don't think thats what he said.
Parts and hardware aren't a limiting factor, but they are an enablement for better software to be created (note Tesla in his example).
Without good hardware then you're stuck jumping through hoops to do all the processing software-side which leaves less time to react quickly and accurately.
