Tesla Self-Driving Feature Is a Loser

A new study shows that only a small fraction of people who might buy a Tesla Inc. (NASDAQ: TSLA) vehicle want a self-driving car. However, Tesla believes that its Full Self-Driving (Supervised), or FSD, is a primary reason people buy its cars. It is not so, and the gulf between people who want it and those who don’t is huge.

The major conclusion of the Electric Vehicle Intelligence Report’s “Self-Driving Cars and Electric Vehicles: U.S. Market Insights & Analysis” research paper was this: “Nearly half of consumers believe FSD technology should be illegal, and consumers say FSD features make them less likely to buy a Tesla by a two-to-one margin.” It is a shock that “illegal” is part of their reasoning. There have been a few cases when Tesla drivers have been in crashes while their cars were in FSD, but that number is quite small. Yet, the accidents have drawn several lawsuits.

About a third of the 8,000 people who were questioned said the self-driving feature would make them less likely to buy a Tesla. Only 14% said it would make them more likely. (In each case, these figures included “unlikely” and “somewhat less likely” added together.)

Perception of the Tesla brand was −15 in August. That is the net difference between those who have a negative view and those who have a positive one. In April, the figure was −7.

The news is a large blow to Tesla, which has seen a drop in sales in the European Union and sales and market share problems in China and the United States. BYD sold many more vehicles in Europe in July. Tesla’s sales in the region during the month fell 40%.

Self-driving, which is largely based on artificial intelligence, is supposed to be among the most important marketing for Tesla cars. The negative view is another headwind to Tesla’s sales recovery.

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