Tesla's FSD System Deters 35% of Buyers, Sales Decline 40% in Europe

Tesla's Full Self-Driving (FSD) system, once hailed as a revolutionary feature, is now facing significant backlash from consumers. A recent survey conducted by a political consulting firm revealed that the FSD system is not attracting potential buyers as intended. Instead, it is deterring a significant portion of consumers from purchasing Tesla vehicles. The survey polled 8,000 Americans and found that only 14% of respondents indicated that FSD would make them more likely to buy a Tesla. Conversely, 35% stated that the technology would decrease their likelihood of purchasing a Tesla, while the remaining 51% said that the presence or absence of FSD would not affect their decision.

The survey also highlighted that nearly half of the respondents believed that FSD technology should be classified as illegal. This sentiment is particularly concerning for Tesla, as the company has been facing declining sales due to an aging product line and increased competition. Additionally, the CEO's controversial political statements and associations have further damaged the brand's reputation. In Europe, Tesla's car sales have been declining for seven consecutive months, with a 40% year-over-year decrease in July.

In the autonomous ride-hailing market, Tesla trails behind competitors such as Waymo and Apollo Go. Currently, Tesla is conducting preliminary tests for its autonomous ride-hailing service in Austin, Texas, and the San Francisco Bay Area. In Austin, test vehicles are equipped with in-car safety personnel, while in San Francisco, vehicles are still controlled by drivers.

The CEO has repeatedly emphasized that Tesla's future depends on its ability to deliver autonomous vehicles and related services. Recently, the CEO mentioned that the production of the new Model Y in the United States would not begin until the end of next year, and it might never happen due to the impending autonomous driving era in the country.

Despite the CEO's enthusiasm for FSD, the company's primary revenue still heavily relies on electric vehicle sales. High-level executives at Tesla have acknowledged that there is a lack of market education regarding FSD. The CEO stated during the company's second-quarter earnings call that most people are unaware of the technology's existence, and even among Tesla owners, about half have never tried using FSD. The company plans to introduce FSD to customers during vehicle maintenance and proactively reach out to owners to send them videos demonstrating its functionality.

However, the user manual for Tesla vehicles lists numerous conditions under which FSD may be unreliable and explicitly warns users to always keep both hands on the steering wheel and be ready to take control at any moment. The CEO's marketing tactics, which often exaggerate the capabilities of FSD, have been criticized for their lack of clarity and honesty. This ambiguity may be a significant factor in the public's negative perception of the technology.

The survey also indicated that a majority of consumers support the implementation of clear and stringent regulations for autonomous vehicles, regardless of their level of automation. There is strong public backing for holding autonomous vehicle manufacturers accountable for accidents and enforcing stricter regulations and advertising standards for features like FSD.

The CEO's recent legal troubles have also contributed to the decline in Tesla's reputation. In early August, a jury in Florida ruled that Tesla was partially responsible for a fatal accident involving a Model S equipped with an autonomous driving system in 2019. The company was ordered to pay approximately 243 million dollars in compensation to the families of the deceased and an injured victim. The CEO has announced plans to appeal the verdict.

Additionally, multiple Tesla owners in California have filed a lawsuit alleging that the company misled consumers about the capabilities of its autonomous driving technology over the past eight years. The lawsuit claims that Tesla has continuously promoted the idea that its vehicles are equipped with "full self-driving hardware" and that related features would soon be available. However, the actual technology delivered did not match the advertised capabilities.