Tesla’s Full Self-Driving Technology Faces Consumer Skepticism Amid Sales Decline

Washington, D.C. — Consumers appear unconvinced by Tesla‘s Full Self-Driving (FSD) technology, new survey results reveal. A report from Slingshot Strategies published on August 30 indicates that skepticism toward FSD may deter potential buyers. The survey, which polled 8,000 Americans, found that only 14% believed FSD would make them more likely to purchase a Tesla. In contrast, 35% said it would make them less likely, while 51% reported that it would not influence their decision.

Nearly half of respondents expressed the view that FSD should be illegal. The findings come as Tesla grapples with a downturn in sales and an aging vehicle lineup, alongside fierce competition from rivals. Reports showed a 40% sales decline for Tesla cars in Europe in July, marking the seventh consecutive month of falling sales.

Musk hinted at the future of Tesla’s viability during a recent earnings call, emphasizing the importance of developing autonomous vehicles and related services. He mentioned that production of the Model Y in the U.S. might not start until late next year due to the implications of self-driving technology.

FSD, which Musk lauds as a key differentiator for Tesla, has faced criticism and heightened scrutiny, especially following a jury ruling that found the company liable for a crash linked to its autopilot systems. Tesla was ordered to pay around $243 million in damages, which they plan to appeal.

Slingshot’s head of research, Evan Roth Smith, expressed concerns regarding the overall reputation of Tesla, noting that the company appears to hold the “worst reputation of any EV maker in the U.S.” Recent lawsuits and accidents have intensified the negative perception, as 36% of consumers now view Tesla cars as unsafe.

In response to the survey findings, Musk acknowledged a need for market education regarding FSD and plans to inform Tesla owners about the system during service visits. He noted that many Tesla drivers have not tried FSD features at all, despite being eligible.

Tesla continues to promote FSD’s advantages, offering promotions such as 0% APR financing for new Model 3 buyers who opt for FSD Supervised. However, experts suggest that regulatory clarity and consumer understanding remain obstacles to widespread acceptance.

The survey further found that strong support exists for regulations governing autonomous vehicles, with 66% of consumers believing that manufacturers like Tesla should be held accountable for accidents involving these technologies. As Tesla expands its operations, including recently launching FSD in Australia, the company may need to address these consumer concerns to rebuild its brand reputation.