Survey: Tesla's Self-Driving System Faces Consumer Skepticism, Legal Hurdles, and Declining Sales
August 29, 2025
Tesla recently launched FSD Supervised in Australia, marking its first entry into a right-hand-drive market, with no reported regulatory barriers, but the company has yet to address the broader skepticism surrounding FSD.
Public opinion strongly favors stricter regulation and accountability for autonomous vehicle manufacturers, with two-thirds believing Tesla should be liable for accidents involving FSD and nearly 80% supporting clearer advertising standards.
Tesla's reputation is declining amid safety concerns, legal cases, and negative perceptions, with a recent $329 million damages award and a rise in safety-related skepticism among consumers.
Tesla's sales are declining due to an aging product lineup, increased competition, and regulatory delays, especially in Europe where a 40% drop in new vehicle registrations was reported in July.
A recent survey of over 8,000 US consumers reveals widespread skepticism about Tesla's Full Self-Driving (FSD) technology, with nearly half believing it should be illegal and most indicating it deters them from buying a Tesla.
Another survey by Slingshot Strategies found that only 14% of potential buyers are more inclined to purchase a Tesla because of FSD, whereas 35% are less interested, further emphasizing consumer doubts.
Tesla's approach to autonomous driving faces criticism from industry leaders like Uber's CEO, who advocates for multi-sensor systems combining LiDAR, radar, and cameras, contrasting with Musk's camera-only strategy, which Musk defends as safer despite ongoing skepticism.
Tesla is also dealing with legal challenges, including a $243 million damages verdict for a fatal crash involving Autopilot in Florida, adding to mounting regulatory scrutiny.
Tesla's autonomous taxi service remains in early testing phases in Austin and San Francisco, lagging behind competitors like Waymo, with vehicles currently supervised by safety personnel or under driver control.
Plans are underway to expand FSD in Europe and China later this year, but these efforts depend heavily on regulatory approvals, which are proving slow and uncertain.
Elon Musk emphasizes that Tesla's future hinges on successful autonomous vehicle technology, yet recent delays, regulatory hurdles, and the postponement of the new Model Y launch until late next year reflect ongoing challenges.
Only 4% of consumers say FSD increases their likelihood of purchasing a Tesla, while nearly 30% say it decreases their interest, highlighting a disconnect between Tesla's marketing claims and public perception.
Summary based on 6 sources
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Sources

CNBC • Aug 28, 2025
Tesla FSD turns off more U.S. consumers than its attracts, survey finds
Benzinga • Aug 28, 2025
Tesla’s Robotaxi Dream Hits Wall of Distrust—Waymo Cruises Ahead - Tesla (NASDAQ:TSLA)
CleanTechnica • Aug 29, 2025
Tesla FSD Is Deeply Unpopular, Survey Shows