Tesla has reached a historic inflection point in its relationship with the American consumer, officially ranking as the least trusted electric vehicle brand in the United States. According to the latest Electric Vehicle Intelligence Report (EVIR) and recent Axios Harris reputation polls, the company’s net brand perception has plummeted to a record low of -13. Once the undisputed darling of the green energy movement, Tesla is now the only major EV manufacturer to hold a net negative score, with only 26% of participants viewing the brand in a positive light—a staggering reversal from its "very good" status just three years ago.

The primary engine of this reputational decay is a growing national skepticism toward Tesla’s automated driving ambitions. The survey reveals that 55% of respondents now believe that semi-autonomous features like Full Self-Driving (FSD) should be illegal on public roads. This sentiment is increasingly backed by legal reality; in late 2025, a Florida jury ordered Tesla to pay over $300 million in a landmark Autopilot liability case. Public concern has shifted from curiosity to caution, with nearly half of all consumers stating that the inclusion of FSD actually makes them less likely to purchase a vehicle from the brand.

The trust deficit is further widened by a perceived lack of safety and reliability compared to legacy automakers. Tesla’s trust rating has fallen to -8, the lowest in its class, as consumers increasingly flock to brands like Toyota, Honda, and Chevrolet, which topped the safety charts in the same report. While Tesla’s technology was once seen as its greatest asset, it is now viewed as a liability; 70% of participants expressed a desire for the government to mandate LiDAR technology—a hardware sensor that Tesla CEO Elon Musk has famously and controversially rejected in favor of a camera-only "Vision" system.

Beyond technical glitches, the "Musk Effect" is playing a pivotal role in the brand’s alienation of its core audience. Analysts point to the CEO’s high-profile political involvement and polarizing public statements as a "partisan tax" on sales. Data suggests that in counties with high shares of Democratic voters—historically Tesla's strongest market—registrations have seen their sharpest declines. By tethering the company’s identity so closely to his personal brand, Musk has inadvertently created a "wave of rejection" among buyers who now view the car as a political statement rather than a transportation choice.

This reputation crisis is no longer just a PR problem; it is a direct threat to the bottom line. Tesla’s global deliveries fell by 14% in the second quarter of 2025, the worst decline in the company’s history. For the first time, Tesla is facing an annual sales decline, with 2025 totals expected to drop roughly 8% year-over-year. As brand loyalty—which once sat at a peerless 73%—erodes toward 57%, the company is losing ground to rivals like BYD and Ford, who are perceived as more stable and "family-friendly" alternatives.

The report also highlights a "family-friendliness" gap that could haunt the company’s long-term growth. Nearly 47% of consumers now label Tesla as "not family-friendly," a metric where no other competitor exceeded 25%. This shift suggests that Tesla is losing its status as the "safe bet" for suburban households, a demographic that is essential for mass-market EV adoption. Critics argue that the company’s focus on "Robotaxis" and humanoid robots has come at the expense of refining the build quality and service network that everyday drivers prioritize.

As we enter 2026, Tesla finds itself at a crossroads between its identity as a revolutionary AI firm and its reality as a struggling automaker. While leadership continues to project a future dominated by autonomous machines, the data shows a public that is increasingly pulling the emergency brake. To regain its crown, Tesla may need to do more than just innovate; it may need to rebuild the very foundation of consumer trust that it pioneered a decade ago.