Tesla’s Robotaxi Dream Hits Wall of Distrust—Waymo Cruises Ahead - Tesla (NASDAQ:TSLA)

Tesla Inc's (NASDAQ:TSLA) Full Self-Driving (FSD) tech was supposed to make robotaxis a reality, but for most Americans, it's a red flag, not a reason to buy. In a new survey of 8,000 U.S. consumers, nearly half say FSD should be illegal, while buyers are more than twice as likely to avoid Tesla because of the feature than to embrace it.

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Meanwhile, Alphabet Inc's Waymo—backed by both LiDAR and cameras—wins over public trust, underscoring Tesla's growing disconnect with consumers.

LiDAR Love, Camera Fatigue

The report shows a clear consumer verdict: the Elon Musk-led firm's "vision-only" approach isn't winning hearts. A sweeping 70% of Americans say autonomous vehicles should use both LiDAR and cameras, as Alphabet's Waymo does, while just 3% back Tesla's cameras-only model.

What's more, 71% want the government to step in and make the dual-system setup mandatory.

On this road, Tesla is driving against the traffic.

Trust Deficit Widens

Tesla's once-golden brand is now dented, with trust scores hitting fresh lows and consumers ranking the company less safe and family-friendly than rivals like Toyota Motor Corp (NYSE:TM) and Honda Motor Co Ltd (NYSE:HMC).

Two-thirds of respondents say Tesla should be legally liable for accidents tied to FSD or Autopilot, and nearly eight in 10 want ads to show proper usage—hands on the wheel, not off. Only 4% of buyers say FSD makes them much more likely to purchase a Tesla, while nearly 30% say it makes them much less likely.

Tesla's grand vision for robotaxis may still capture imaginations in Silicon Valley boardrooms, but on Main Street, the mood is clear: innovation without reassurance feels like a car without brakes. Consumers aren't asking for "full self-driving."

They're asking for accountability, affordability, and reliability.

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