🚨 Innovation or Risk? Why Tesla’s FSD Is Turning Consumers Away

Tesla’s Full Self-Driving (Supervised) technology — FSD.
By its very name, it sounds like the future has already arrived. Yet in reality, American consumers are responding in a very different way.

Recent surveys show that instead of drawing people toward Tesla, FSD is pushing many away. The reaction is not “Amazing, I want a Tesla!” but rather “Isn’t that dangerous? I’d rather not buy one.”

📊 The Uncomfortable Truth in the Data

Political consulting firm Slingshot Strategies surveyed 8,000 Americans about Tesla’s FSD.

The results were striking:

• Only 14% said FSD increased their likelihood of buying a Tesla.
• 35% said it actually decreased their likelihood.
• 51% said it made no difference.

Even more telling: nearly half of respondents said FSD should be made illegal. Instead of seeing innovation, they see danger.

⚡ Tesla’s Declining Brand Trust

A few years ago, Tesla was the ultimate symbol of innovation.
The equation was simple: electric vehicle = Tesla. Today, the equation is broken.

In Europe, Tesla’s sales fell 40% year-over-year in July, marking the seventh consecutive month of decline. Meanwhile, rivals like BYD are growing.

The problem is not just sales numbers — it’s reputation. Elon Musk’s political statements, ties with Trump, and support for Germany’s far-right AfD party have all damaged Tesla’s image.

Tesla is no longer seen as “innovation” but rather as “controversy.”

🤖 Falling Behind Competitors

Musk insists Tesla’s future depends on self-driving and robotaxis. But reality paints a different picture.

Waymo (Alphabet) and Baidu’s Apollo Go are already running commercial services in major cities. Waymo is testing driverless taxis in San Francisco and Phoenix, while Baidu operates in Beijing and Wuhan.

Tesla, on the other hand, still requires driver supervision. Even more concerning: over half of Tesla owners have never used FSD at all. That speaks volumes about consumer trust.

💸 Pricing and Marketing Failures

Tesla sells FSD for $99/month or via an upfront purchase. The CFO has marketed it as “a personal chauffeur for $3.33 per day.”

But consumers aren’t buying it. Why?

• Lack of awareness: Even Musk admits, “Most people don’t know this service exists.”
• Lack of experience: Without hands-on trials, people won’t trust it.
• Safety doubts: Price arguments don’t matter when safety is in question.

⚠️ Safety Concerns and Lawsuits

The biggest issue is safety.

In August 2025, a U.S. jury ruled Tesla partially liable for a fatal crash involving FSD. The company now faces $243 million in damages.

This hit Tesla’s reputation hard. Recent surveys show the percentage of people calling Tesla “unsafe” rose from 34% → 36%, while those calling it “very safe” dropped from 17% → 13%.

Meanwhile, brands like Honda, Toyota, and Chevrolet are still seen as the safest. Innovation doesn’t beat trust when lives are on the line.

🌍 A Chance Abroad?

In the U.S., trust in Tesla is collapsing. But overseas, Tesla is still testing opportunities.

This week, Tesla launched FSD Supervised in Australia, hoping for a better reception. Musk continues to insist that FSD is a “life-saving, life-changing technology.”

But for consumers, the vision of the future matters less than the safety they feel today.

🧩 Key Insight: Trust Before Innovation

Why is it that a groundbreaking technology makes consumers more afraid than excited?

It comes down to human psychology. The brain craves novelty, but when survival and safety are at stake, it defaults to caution.

In self-driving, trust comes before innovation. Tesla flipped the order: it shouted “innovation” while failing to secure “safety.” The result? Consumers turned away.

📌 Lessons for Korea

What does this mean for South Korea’s automakers and tech firms?

1. Innovation without trust fails.
   Hyundai and Kia must prioritize safety credibility before commercialization.
2. Brand management is critical.
   Political statements or CEO controversies can destroy trust, no matter how good the product is.
3. Global strategies must adapt to culture.
   Consumer trust structures differ across the U.S., Europe, and Asia. Korean firms must go beyond technology to understand social and cultural contexts.

📝 Summary

• 35% of U.S. consumers say FSD makes them less likely to buy a Tesla
• European sales fell 40% year-over-year, reputation now among the worst in EV sector
• Waymo and Baidu are ahead in commercialization
• Safety controversies and lawsuits pose serious legal risks
• Tesla’s real issue is not technology but lack of trust

🔗 Source
📌 CNBC, Evelyn Cheng & Lora Kolodny (Aug 28, 2025)
“Tesla’s FSD turns off more U.S. consumers than it attracts”