Tesla's reputation has taken a nosedive this year, and a survey has revealed another problem within the company.
What's happening?
According to CNBC, Slingshot Strategies found that 35% of consumers would not buy a Tesla electric vehicle due to the Full Self-Driving technology (which still requires human supervision). Additionally, only 14% said the technology would persuade them to make a purchase.
Slingshot Strategies published the August Electric Vehicle Intelligence Report, where the firm surveyed 8,000 Americans. Of the 51% remaining participants, they said FSD would make no difference in their decision to buy a Tesla.
Almost half of the people surveyed believe that "FSD technology should be illegal," per CNBC.
These are people who are likely aware of the technology, while many are not.
According to CNBC, during Tesla's second-quarter earnings call, CEO Elon Musk said, "The vast majority of people don't know it exists."
He added, "And it's still like half of Tesla owners who could use it, haven't tried it even once."
Tesla has already had a challenging 2025, partly because of Musk's polarizing involvement in the U.S. government. CNBC reported that the EV company's net income declined 71% in the first quarter of the year.
While Musk has left his post in the White House, the company's income continued to decline in the second quarter. According to CNBC, "Net income fell to $1.17 billion, or 33 cents per share, in the second quarter, from $1.4 billion, or 40 cents per share, a year earlier."
Why is it concerning that people are deterred from buying a Tesla?
Musk and Tesla have shifted their business model to focus more on FSD and artificial intelligence, yet many consumers are already put off by the technology.
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Cost concerns 💸 It also hasn't been proven yet. As previously noted, FSD still requires supervision, as Tesla has yet to crack truly full self-driving capabilities.
With Tesla's reputation already at a low point, this risks a continued decline in sales and deterring people from EVs.
However, switching to an EV is an excellent way to save money in the long term, as it can reduce gas and maintenance costs by $1,500 a year compared to driving a gasoline-powered car. Consumers are missing out on those savings if they are opting not to buy an EV.
Additionally, EVs are better for the environment. A UC Berkeley professor placed 57 sensors in the San Francisco Bay Area to track toxic gases. It found that polluting gases decreased 1.8% each year as EV take-up increased. Imagine how that number could grow as more people switch to EVs over vehicles that rely on internal combustion engines.
What's being done about getting people to adopt EVs?
According to CNBC, Musk plans for Tesla to send customers videos of how the FSD technology works, as well as inform them about the feature when they take their cars in for service.
Additionally, Tesla isn't the only car maker that sells EVs. Consumers have many options these days, including Honda's Prologue, Volkswagen's ID.4, Toyota's bZ4X, and more.
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