Tesla FSD: More Turn-Off Than Attraction for US Consumers, Survey Shows

Elon Musk’s unwavering confidence in Tesla’s self-driving technology, or FSD, isn’t translating into increased sales, quite the contrary, it seems.

A new survey suggests that Tesla’s Full Self-Driving (Supervised) system is proving to be more of a deal-breaker than a selling point for potential U.S. buyers.

The Electric Vehicle Intelligence Report for August, a study conducted by Slingshot Strategies, surveyed 8,000 Americans. The findings revealed that only 14% of respondents were more inclined to purchase a Tesla due to FSD, while a concerning 35% indicated that the technology actually deterred them from buying one.

A significant 51% stated that FSD would have no impact on their purchasing decisions. Moreover, nearly half of the surveyed consumers believe that FSD technology should be outright illegal, highlighting a serious perception problem for Tesla.

These results arrive at a crucial juncture for Tesla, as the company grapples with a sales slowdown attributed to an increasingly dated EV lineup and intensifying competition. Contributing to the challenge is the reputational impact of Musk’s own actions: his controversial political statements, his engagement with the Trump administration, and support of Germany’s far-right AfD party, all of which may be eroding consumer confidence.

Across the Atlantic, Tesla’s European sales have taken a hit, plummeting 40% in July compared to the previous year – marking the seventh consecutive month of decline.

In the burgeoning robotaxi arena, Tesla finds itself trailing competitors like Alphabet’s Waymo and Baidu’s Apollo Go. Tesla is currently testing its ride-hailing service in Austin, Texas, and the San Francisco Bay Area, albeit with human supervisors or drivers in the vehicles, signaling that full autonomy is still some way off.

For Musk, who has tied Tesla’s future to the realization of fully autonomous driving, the stakes are incredibly high. Recent statements regarding the Model Y suggest a shifting timeline for FSD integration, pending regulatory developments in the US.

While Tesla currently depends substantially on EV sales for revenue generation, Musk has positioned FSD as a critical advantage against its rivals, a potentially transformative feature.

In defense, Tesla executives have suggested a key challenge is around customer education in regards to the FSD system and driving greater adoption.

“The vast majority of people don’t know it exists,” Musk lamented during the second-quarter earnings call. “And it’s still like half of Tesla owners who could use it, haven’t tried it even once.”

Musk announced plans to integrate FSD promotion into the customer service experience, and to actively engage and inform drivers, illustrating how the system works.

CFO Vaibhav Taneja characterized the premium FSD offering as providing a “personal chauffeur” at a cost of roughly $3.33 per day.

Currently priced at $99 per month or available as an up-front purchase, FSD Supervised provides a limited suite of self-driving capabilities on local roads and city streets.

Recent promotional efforts have seen Tesla offer 0% APR on new Model 3 orders placed before September 1, provided customers opt for FSD Supervised integration or transfer the system from a previous Tesla vehicle.

Despite Musk’s assertions on X about FSD’s capabilities – claiming “all conditions” operability, potential “life-saving” impact, and a “life-changing product” status, Tesla’s own owners manuals paint a more cautious picture.

The manuals stress that several conditions may impair the reliability of FSD Supervised, mandating that drivers keep their hands on the wheel and stay prepared to manually override steering or braking.

Diving deeper into the numbers, among prospective EV buyers, a mere 20% are more inclined towards Tesla due to FSD, while 33% are less so. The marketing of FSD seems to be adding to the problem, if anything, the lack of full and frank disclosure may be contributing to eroding consumer confidence.

The prevailing sentiment among consumers surveyed by Slingshot is a desire for clear and robust regulations governing both fully and partially automated vehicles in the United States.

“There is strong support for holding AV manufacturers responsible for accidents and requiring stricter regulatory and advertising guardrails around features such as FSD,” the Slingshot report stated.

Slingshot’s head of research, Evan Roth Smith points out that beyond concerns about FSD, Tesla’s brand faces broader challenges. Tesla “has the worst reputation of any EV maker in the U.S.”, which he connects with product liability lawsuits and verdicts that have emerged.

The decline in the company reputation has been significant, particularly over the recent period.

In early August, a jury held Tesla partially liable for a fatal crash linked to its autopilot systems, ordering Tesla to pay roughly $243 million. While Tesla has indicated its intention to appeal, this ruling adds to the mounting pressure.

Further data from the Slingshot report indicates that consumer perceptions of Tesla’s safety are shifting, with 36% now viewing Tesla’s vehicles as unsafe, rising from 34% in the past two months. Conversely, the percentage viewing Tesla as very safe dropped from 17% to 13%.

In contrast, Honda, Toyota, and Chevrolet were consistently ranked as the safest brands by respondents.

Neither Tesla nor Slingshot Strategies have responded to requests for comment.

Tesla may find greater acceptance for its brand and FSD technology in different geographic areas. Just recently, the company released FSD Supervised in Australia.