Tesla FSD turns off more U.S. consumers than its attracts, survey finds

Despite Elon Musk's enthusiastic promotion of Tesla's self-driving technology, new survey results indicate that many potential buyers are not impressed. A recent poll conducted by Slingshot Strategies, which surveyed 8,000 Americans, found that 35% of respondents believe Tesla's Full Self-Driving (FSD) system would deter them from purchasing a vehicle from the brand. In contrast, only 14% indicated that the technology would encourage them to buy a Tesla, while a significant 51% said it would have no impact on their decision-making process. The survey also revealed that nearly half of the consumers questioned feel that FSD technology should be outlawed. These findings emerge as Tesla grapples with declining sales, attributed to an aging vehicle lineup and intensifying competition from other electric vehicle manufacturers. Additionally, Musk's controversial political affiliations and statements have further complicated the company's image. In Europe, Tesla's sales have plummeted by 40% in July compared to the previous year, marking the seventh consecutive month of decline. In the burgeoning robotaxi sector, Tesla lags behind competitors like Waymo and Baidu's Apollo Go. The company is currently conducting trials for a ride-hailing service in Austin, Texas, and the San Francisco Bay Area, with plans to expand to additional cities. However, while vehicles in Austin have human supervisors, those in San Francisco are operated by drivers. Musk has emphasized the importance of Tesla's capability to deliver autonomous vehicles and related services for the company's future. He recently mentioned that a new Model Y variant launched in China may not enter production in the U.S. until late next year, if at all, due to the rise of self-driving technology. Currently, Tesla's revenue heavily relies on electric vehicle sales, although Musk has touted FSD as a key differentiator in the market. Executives acknowledged during the last earnings call that there is a significant challenge in educating potential customers about FSD, with Musk stating, "The vast majority of people don't know it exists." Tesla CFO Vaibhav Taneja highlighted that subscribers to the premium FSD option could enjoy a 'personal chauffeur' service for a daily fee of approximately $3.33. The existing version of FSD Supervised is available to owners for $99 per month, providing limited self-driving capabilities in urban environments. In an effort to boost interest, Tesla has recently initiated promotions, such as 0% APR financing for new Model 3 orders if customers opt for FSD. Musk has made bold claims about FSD's potential to operate in all conditions and its life-saving capabilities, sharing videos of users engaging with the technology. However, Tesla's own manuals caution users about the limitations of FSD and emphasize the need for driver supervision at all times. Among those actively considering purchasing a fully electric vehicle, only 20% felt more inclined to choose Tesla due to FSD, while 33% reported feeling less likely to buy one. Evan Roth Smith, head of research at Slingshot, suggested that the lack of transparency and clarity in Tesla's marketing could contribute to consumer skepticism regarding FSD. The report also indicated strong public support for stringent regulations governing the autonomous vehicle sector. Recent legal challenges, including a jury's decision to hold Tesla partially liable for a fatal crash involving its autopilot feature, have further damaged the company's reputation, with the number of consumers perceiving Tesla vehicles as unsafe rising to 36%. As Tesla expands its FSD offerings, it remains to be seen whether it can rebuild its brand image and consumer trust, particularly in markets like Australia, where FSD Supervised was just launched.