Full Self-driving May Be Hurting Tesla's Reputation More Than It's Helping

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Good morning! It's Friday, August 29, 2025, and this is The Morning Shift, your regular roundup of nan apical automotive headlines from astir nan world, successful 1 place. This is wherever you'll find nan astir important stories that are shaping nan measurement Americans thrust and get around.

In this morning's edition, Tesla's Full Self-Driving strategy whitethorn not beryllium nan PR triumph Elon Musk wants it to be, nan European Union capitulates to nan U.S. successful nan hopes of bringing car tariffs down, GM cuts a displacement for immoderate of its biggest EVs and BYD really hits a velocity bump.

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A caller study shows that much U.S. consumers are really turned disconnected by Tesla's Full Self-Driving driver assistance system. They opportunity it really pushes them distant from nan marque alternatively than drafting them to it. This flies straight successful nan look of CEO Elon Musk's fervent promotion of nan tech arsenic a cardinal characteristic successful his electrical vehicles.

The Electric Vehicle Intelligence Report for August, which governmental consulting patient Slingshot Strategies published, polled 8,000 Americans. Just 14% of them said FSD would make them much apt to bargain a Tesla. At nan aforesaid clip 35% said nan tech would make them little likely,  nan remaining 51% said FSD wouldn't plaything them 1 measurement aliases nan other. You gotta emotion nan mean American consumer. From CNBC:

Nearly half of consumers surveyed by Slingshot said they deliberation FSD exertion should beryllium illegal.

For Tesla, nan troubling results onshore successful nan mediate of a income slump resulting from an aging lineup of electrical vehicles and accrued title from rivals. There's besides reputational harm successful consequence to Musk, his incendiary governmental rhetoric, activity pinch nan Trump management and support of Germany's far-right AfD party.

Sales of Tesla cars successful Europe plunged 40% successful July from a twelvemonth earlier, nan seventh consecutive period of declines.

[...]

For now, Tesla still relies connected EV income for nan immense mostly of its revenue, though Musk has touted FSD arsenic 1 of nan company's large advantages complete competitors.

Last month, executives suggested that Tesla has a marketplace acquisition problem erstwhile it comes to driving take of FSD.

Musk said Tesla reps would commencement telling customers astir FSD erstwhile they bring successful their cars for service, and they would statesman reaching retired to drivers, sending them videos of really nan strategy works.

I don't know, Elon. When you look astatine these numbers, it doesn't really look for illustration an acquisition thing. Sure, a batch of group haven't made up their minds connected FSD conscionable yet, but it's difficult a "vast majority." For nan astir part, folks cognize what nan strategy is, and much importantly, what it isn't.

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The European Union is moving to destruct each tariffs connected business imports from nan U.S. and grow entree for American workplace products. It's being done successful an effort to shield European automakers from higher duties connected nan vehicles they export to nan United States. It's a bully first measurement that'll person started retroactively connected August 1. From The Wall Street Journal:

The proposals travel a associated connection past week successful which Brussels and Washington agreed to trim levies connected European autos to 15% from a provisional complaint of 27.5%. In return, nan EU committed to lowering tariffs connected a scope of U.S. goods.

[...]

That suggests nan little car tariffs are expected to beryllium backdated to nan opening of nan month, soon aft nan 2 sides struck a woody that will spot a baseline 15% tariff applied to European exports to nan U.S. EU waste and acquisition main Maros Sefcovic said past week that U.S. Commerce Secretary Howard Lutnick has assured European officials of nan retroactive application.

[...]

Under nan EU's proposal, tariffs connected U.S. business equipment would beryllium scrapped entirely, while American seafood and definite non-sensitive cultivation products would person preferential entree to nan European market. A abstracted connection would widen tariff-free curen for U.S. lobster, including processed varieties of nan shellfish.

I cognize this will not wholly hole nan messiness President Trump has made of nan world economy erstwhile it comes to his ill-advised tariffs, but astatine slightest it seems for illustration a measurement successful nan correct direction. We shall see. For now, bask our shellfish, Europe. We'll bask your Porsches.

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General Motors is cutting astir 360 labor astatine its Factory Zero electrical conveyance works successful Detroit for astatine slightest a period successful bid to trim accumulation connected some nan GMC Hummer EV and Cadillac Escalade IQ — 2 of nan biggest EVs nan institution produces. One of 2 regular shifts building each of those vehicles will beryllium idled from September 2 until October 6. However, these changes won't effect nan Chevy Silverado EV aliases GMC Sierra EV, which are besides built astatine Factory Zero. From Automotive News:

The 360 affected labor see astir 200 who were expected to beryllium connected layoff during nan week of Aug. 25 and return Sept. 2. Those workers now will stay disconnected until Oct. 6.

In a statement, GM spokesperson Kevin Kelly said nan displacement reductions are "temporary adjustments to accumulation to align to marketplace dynamics."

"General Motors updates schedules arsenic portion of our modular process of aligning accumulation to negociate conveyance inventory," nan connection said. "Impacted labor will beryllium placed connected a impermanent layoff and whitethorn beryllium eligible for subpay and benefits successful accordance pinch nan GM-UAW nationalist contract."

[...]

Factory Zero has had impermanent layoffs aggregate times this year. In April, GM idled astir 200 of nan plant's 4,000 employees. Roughly 150 person returned to activity since then, nan root said.

A move for illustration this isn't excessively overmuch of a surprise. In nan first half of 2025, GM sold 3,766 Escalde IQs and IQLs successful nan U.S. It sold a further 7,987 Hummer EV Trucks and SUVs. All of those numbers, for illustration nan remainder of nan EV market, are apt good beneath original expectations.

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Chinese electrical conveyance shaper BYD's quarterly profits fell for nan first clip successful 3 and a half years, acknowledgment to nan government's run against a value warfare nan full manufacture is embroiled in. Net profit astatine the world's largest EV builder totaled $894.7 cardinal successful nan 2nd 4th of this year. That's down a whopping 29.9% from a twelvemonth earlier. The driblet is moreover much alarming erstwhile you see nan truth that it roseate 100.4% successful nan first quarter. 

Still, it's not each bad news. Revenue managed to summation 14% to astir $28 cardinal successful nan 2nd quarter, and first-half profits were up 13.8% while gross was up 23.3%. From Reuters:

The biggest Chinese rival to Tesla has faced challenges successful caller months arsenic Chinese authorities person called for a halt to a bruising value warfare successful China that has pressured profit margins crossed nan full industry.

BYD has group a target to waste 5.5 cardinal cars globally this year, but it sold 2.49 cardinal successful nan first 7 months of nan year, gathering 45% of its goal.

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BYD, which generates astir 80% of its income successful China, saw conveyance income autumn successful its location marketplace for nan 3rd consecutive period successful July, while its accumulation slid for nan first clip successful 17 months.

[...]

BYD was among awesome automakers that pledged successful June to make payments to suppliers wrong 60 days aft Chinese authorities ordered carmakers to make payments much promptly and to extremity a value war.

The bully times cannot past forever, I suppose, but I don't expect this to beryllium much than a blip for BYD.

History.com

After each of these years, Sarah Palin could still beryllium nan funniest to ever do it. Thank you, John McCain, for giving her to nan world. It astir apt costs you nan predetermination (not that you really had a chance of winning anyway), but man, was it worthy it. If you want to study much astir this complete debacle, caput complete to

History.com

.

I'm emotion angsty today, friends. Join me. Let it travel done you.