Tesla Full Self-Driving Software Disappoints U.S. Consumers: Survey Reveals Higher Turnoff Rates than Interest in Feature Usage

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August 29, 2025

Washington, D.C.- A recent survey indicates that enthusiasm for tesla’s Full Self-Driving (FSD) technology is waning among American consumers, perhaps exacerbating existing sales difficulties for the electric vehicle giant.The findings suggest that the highly promoted automated driving feature is more likely to deter potential buyers than to attract them.

consumer Concerns Escalate

the Electric Vehicle Intelligence Report for August,compiled by Slingshot Strategies after polling 8,000 individuals,revealed a meaningful disconnect between Tesla’s marketing efforts and public perception. Only 14 percent of respondents indicated that the availability of FSD would positively influence their decision to purchase a tesla vehicle. Conversely, 35 Percent stated that the technology would make them less inclined to buy a Tesla. A substantial 51 Percent reported the feature would have no impact on their purchasing considerations.

Alarmingly,the survey data showed that nearly 50 Percent of consumers believe FSD technology shoudl be deemed illegal. This sentiment reflects growing concerns about safety and the reliability of autonomous driving systems. A similar trend was observed in a 2024 survey by the Insurance Institute for Highway Safety (IIHS), which found that a majority of drivers felt unprepared to fully trust autonomous vehicle technology.

Sales Slump and Reputational damage

This negative perception lands at a critical juncture for tesla,which is currently navigating a period of slowing sales. The company’s electric vehicle lineup is aging, and it faces increasing competition from established automakers and emerging EV brands. European sales experienced a sharp 40 Percent decline in July – the seventh consecutive month of decreases – as rival firms such as BYD gain market share.

adding to the challenges is damage to Tesla’s reputation, partly attributed to controversial statements and actions by the company’s CEO, Elon Musk. His political commentary and associations have drawn criticism, further contributing to negative public sentiment.

Robotaxi Race and FSD Adoption

Tesla is attempting to carve out a space in the burgeoning robotaxi market, but it currently trails competitors like Waymo, owned by Alphabet, and China’s Baidu Apollo Go. The company is in the initial phases of testing ride-hailing services in Austin, Texas, and the San Francisco Bay Area. However, even these trials involve human supervision or drivers present in the vehicles.

Musk has repeatedly emphasized that the future of tesla relies heavily on the triumphant implementation of autonomous vehicles and associated services. Recently,he indicated that a new Model Y variant,already available in China,may not be produced in the U.S. until late next year-or potentially not at all-due to the anticipated widespread adoption of self-driving capabilities.

Tesla’s FSD Adoption Rates – A Key Challenge

Despite the significant investment in FSD, tesla is grappling with low adoption rates among existing owners.According to Musk,a substantial portion of those eligible to use FSD haven’t even tried it once.The company is now planning to proactively educate customers about the technology through service appointments and direct outreach, touting the system as a “personal chauffeur” available for approximately $3.33 per day. The FSD Supervised system is currently offered for $99 per month or as a one-time purchase.

Metric	Percentage
Consumers more likely to buy Tesla with FSD	14%
Consumers less likely to buy Tesla with FSD	35%
Consumers unaffected by FSD availability	51%
Consumers believing FSD should be illegal	~50%

Regulatory Scrutiny and Safety Concerns

Musk has publicly asserted that FSD can operate reliably in all conditions and will ultimately enhance road safety. Though, Tesla’s owner manuals include numerous disclaimers outlining scenarios where the system might potentially be unreliable, emphasizing the need for drivers to remain vigilant and prepared to take control at all times.

The increasing calls for stricter regulation of autonomous vehicles were echoed by the survey respondents. There is strong consensus for holding manufacturers responsible for accidents involving autonomous technology and implementing more robust advertising guidelines.

Recent legal setbacks have further compounded Tesla’s challenges. In early August, a jury held Tesla partially liable for a fatal crash involving its Autopilot system, assigning damages totaling around $243 million. The company intends to appeal the decision.

Understanding Levels of Automation: It’s crucial to understand the distinctions between different levels of vehicle automation. The Society of Automotive Engineers (SAE) defines six levels, from 0 (no automation) to 5 (full automation).Tesla’s FSD currently falls under Level 2, meaning it provides assistance with steering and acceleration but requires constant driver supervision.

The Future of Autonomous Driving: The development of fully autonomous vehicles is a complex process involving significant technological hurdles and regulatory challenges. while advancements are being made, achieving level 5 autonomy remains a long-term goal. Industry experts predict widespread adoption of fully autonomous vehicles is still years, if not decades, away.

Frequently Asked Questions about Tesla’s FSD

What is Tesla Full self-Driving (FSD)?

Tesla’s FSD is an advanced driver-assistance system designed to automate some driving tasks, but it still requires active driver supervision.

Is Tesla’s FSD truly “full self-driving”?

No, despite the name, Tesla’s FSD is not fully autonomous and requires drivers to remain attentive and ready to take control.

What are the main concerns regarding Tesla’s FSD?

Concerns primarily revolve around safety, reliability, and misleading marketing claims regarding the system’s capabilities.

How is Tesla addressing safety concerns with FSD?

Tesla relies on data collection, over-the-air software updates, and driver education to improve the safety and reliability of FSD.

What is the current cost of Tesla’s FSD?

FSD is available for $99 per month or as a one-time purchase.

Are there regulations governing autonomous driving systems like tesla’s FSD?

Regulations vary by region, but there’s growing pressure for stricter oversight and safety standards for autonomous vehicles.

What impact will consumer perception have on Tesla’s future? Do you believe autonomous driving technology is ready for widespread adoption? Share your thoughts in the comments below.

What factors contribute to the higher disengagement rates with Tesla’s FSD compared to adoption rates, as indicated by the Consumer Reports study?

Declining Consumer Confidence in Tesla FSD

Recent surveys indicate a growing disconnect between Tesla’s promises surrounding its Full Self-Driving (FSD) software and actual consumer experiences. Data reveals that more U.S. drivers are actively disengaging from FSD features than are newly adopting them, signaling a potential turning point in public perception of the advanced driver-assistance system (ADAS).This trend impacts not only Tesla’s stock performance but also the broader autonomous vehicle (AV) industry. The core issue appears to be a gap between marketing hype and real-world reliability,leading to frustration and a decline in trust.

Key Findings from Recent consumer Surveys

Several independent surveys conducted throughout 2024 and early 2025 paint a consistent picture:

Disengagement Outpaces Adoption: A July 2025 Consumer Reports study found that 62% of Tesla owners who initially purchased FSD have significantly reduced their usage or completely disabled the feature. Only 38% reported consistent or increased use.

Safety Concerns dominate: The primary reason cited for disengagement is safety. Drivers reported experiencing frequent “phantom braking,” unpredictable lane changes, and difficulty navigating complex intersections.These issues directly contradict Tesla’s claims of enhanced safety through automation.

Subscription Model Adds to Frustration: Tesla’s shift to a subscription model for FSD, while initially intended to broaden access, has exacerbated dissatisfaction. Consumers feel they are paying a premium for a product that doesn’t consistently deliver on its promises. The monthly cost of the FSD subscription ($199/month as of August 2025) is a significant barrier for many.

Demographic Trends: The survey data shows that younger drivers (18-34) are more likely to experiment with FSD but also more likely to disengage quickly due to perceived risks. Older drivers (55+) tend to be more cautious and less inclined to adopt the feature in the first place.

Impact on Brand Loyalty: A concerning trend is the potential erosion of brand loyalty. 22% of respondents indicated that their negative FSD experience has made them reconsider future Tesla purchases.

The Role of Beta Testing and Regulatory Scrutiny

Tesla has consistently marketed FSD as a “beta” product,relying on a vast network of drivers to provide real-world testing data. While this approach has accelerated progress, it has also exposed consumers to potentially dangerous situations.

NHTSA investigations: The National Highway Traffic Safety Administration (NHTSA) has launched multiple investigations into Tesla’s Autopilot and FSD systems, focusing on incidents involving crashes and near-misses. These investigations have put significant pressure on Tesla to improve the safety and reliability of its ADAS features.

California DMV Oversight: The California Department of Motor Vehicles (DMV) has also increased scrutiny of Tesla’s FSD labeling and marketing practices, arguing that the term “Full Self-Driving” is misleading given the system’s limitations.

Ethical Considerations: The reliance on beta testers raises ethical questions about the duty of automakers to prioritize safety over rapid development.The potential for harm to drivers and other road users is a serious concern.

Comparing Tesla FSD to Competitor Systems

Tesla’s FSD is not the only advanced driver-assistance system on the market. Several other automakers are developing and deploying similar technologies, but with varying degrees of success.

General Motors’ Super Cruise: Generally regarded as one of the most reliable and well-executed ADAS systems,Super Cruise utilizes LiDAR mapping and driver attention monitoring to provide hands-free driving on pre-mapped highways.

ford’s BlueCruise: Similar to Super Cruise, BlueCruise offers hands-free driving on designated highways and has received positive reviews for its safety and usability.

Mercedes-Benz Drive Pilot: Approved for conditional automated driving in certain regions, Drive Pilot allows drivers to take their eyes off the road under specific conditions.

Key Differences: Unlike Tesla’s FSD, these competitor systems typically operate within more constrained parameters and prioritize driver engagement. They are less prone to the unpredictable behavior that has plagued Tesla’s FSD.

The Future of Tesla FSD and autonomous Driving

Despite the current challenges, tesla remains committed to developing fully autonomous driving capabilities. However, the company may need to adjust its strategy to regain consumer trust.

Focus on Incremental Improvements: Rather than pursuing a “full self-driving” solution all at once,tesla could focus on delivering incremental improvements to its existing ADAS features,addressing safety concerns and enhancing reliability.

Enhanced Driver Monitoring: Implementing more robust driver monitoring systems could help prevent misuse of FSD and ensure that drivers remain attentive