Tesla’s Self-Driving Technology Fails to Win Over U.S. Consumers as Perception of Brand Safety Sinks: Slingshot Survey

Tesla’s aggressive promotion of its self-driving technology has failed to win over potential buyers, according to a recent survey. The poll, conducted by political consulting firm Slingshot Strategies and involving 8,000 American consumers, revealed that only 14% would be more likely to purchase a Tesla due to the Full Self-Driving (Supervised) systems, while 35% would be less inclined.

The remaining 51% expressed no change in their car buying decisions based on the availability of FSD technology. Moreover, nearly half of the consumers surveyed believe that FSD should be illegal.

Tesla is currently grappling with declining sales due to an aging fleet of electric vehicles and increased competition from rival manufacturers. Additionally, the company faces reputational damage stemming from Elon Musk’s controversial political rhetoric, his associations with the Trump administration, and support for Germany’s far-right AfD party.

In Europe, Tesla car sales plummeted by 40% in July compared to the previous year, marking the seventh consecutive month of declines.

In the robotaxi market, Tesla lags behind Alphabet-owned Waymo and Baidu’s Apollo Go. Tesla is currently in the early stages of testing a ride-hailing service in Austin, Texas, and the San Francisco Bay Area, with plans to expand to more cities this year. In Austin, human supervisors are on board, while in San Francisco, drivers remain at the wheel.

Musk, the world’s wealthiest individual, has emphasized that the future of Tesla hinges on its ability to deliver autonomous vehicles and related services. He recently announced that a new variant of the Model Y, launched in China, will not commence production in the U.S. until the end of next year, and may never do so due to the advent of self-driving technology in America.

For now, Tesla continues to rely heavily on electric vehicle sales for its revenue, although Musk has touted FSD as one of the company’s key advantages over competitors.

Executives have suggested that Tesla faces a market education problem regarding the adoption of FSD. During the second-quarter earnings call, Musk mentioned that most people are unaware of FSD’s existence and that half of Tesla owners haven’t tried it once.

Musk plans to inform customers about FSD during service visits and reach out to drivers with educational videos on its operation. Tesla CFO Vaibhav Taneja stated during the July earnings call that subscribers to the premium FSD option effectively receive a “personal chauffeur” for approximately $3.33 per day.

The version of FSD Supervised available today costs $99 per month or can be purchased upfront. It provides users with limited self-driving capabilities on residential and city streets.

On Thursday, Tesla offered 0% APR financing to customers ordering a new Model 3 by September 1st, as long as they include FSD Supervised in their order or transfer it from a previously owned Tesla.

Musk has claimed that FSD can operate in all conditions, save lives, and be a “life-changing product” for many people. He has also shared user-generated videos depicting Tesla owners using FSD without their hands on the wheel. However, the owner’s manuals list numerous situations where FSD Supervised may not be reliable, and users are advised to keep their hands on the steering wheel at all times and remain prepared to take control of steering or braking.

Among those actively seeking fully electric vehicles, only 20% said they would be more likely to buy a Tesla due to FSD, while 33% expressed less interest. Evan Roth Smith, Slingshot’s head of research, suggested that the company’s marketing lacks clarity and honesty as a potential factor.

Most consumers surveyed by the firm support strong regulations governing autonomous vehicles in the U.S., whether fully or partially automated. The report emphasized the need for holding AV manufacturers accountable for accidents and implementing stricter regulatory and advertising safeguards around features like FSD.

Smith noted that beyond its FSD issues, Tesla has “the worst reputation of any EV maker in the U.S.” He added that recent product liability lawsuits and verdicts may be contributing to this perception.

In early August, a jury found Tesla partially liable for a fatal crash where the driver was relying on its autopilot systems. Tesla, which intends to appeal the decision, is required to pay around $243 million in damages to victims and a survivor.

In the past two months, the number of consumers viewing Tesla cars as unsafe has risen to 36%, while those perceiving them as very safe declined to 13%. Honda, Toyota, and Chevrolet were viewed as the safest by the greatest number of respondents.

Tesla did not respond to a request for comment. Slingshot stated that they sent the survey results to the company but did not receive a response. Tesla may find more enthusiasm for its brand and FSD in other markets. The company has recently started offering FSD Supervised in Australia.