A Florida jury has ruled against Tesla Inc. TSLA, ordering the Elon Musk-led electric vehicle giant to pay $243 million in a lawsuit stemming from a 2019 fatal crash involving its Autopilot feature.
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What Happened: A Miami federal court jury awarded $129 million in compensatory damages and $200 million in punitive damages to the estate of Naibel Benavides Leon and her former boyfriend, Dillon Angulo, according to a Reuters report.
Tesla is liable for 33% of the compensatory damages, totaling $42.6 million, while the driver, George McGee, was found responsible for 67% but will not pay.
The plaintiffs’ attorney, Brett Schreiber, criticized Tesla for allowing Autopilot use beyond controlled-access highways. Tesla plans to appeal, arguing that the verdict undermines automotive safety and the development of life-saving technology.
This case is the first trial involving a third-party wrongful death linked to Autopilot, potentially setting a precedent for future lawsuits. The incident occurred when McGee’s Model S collided with the victims’ parked SUV, resulting in Benavides Leon’s death and Angulo’s severe injuries.
Why It Matters: The verdict comes after Tesla’s failed attempt to dismiss the lawsuit in June, as ruled by Judge Beth Bloom. This decision allowed the case to proceed, highlighting the potential design defects and failure to warn claims against Tesla.
Additionally, Tesla is facing scrutiny from the California DMV, which has filed a lawsuit to potentially ban the company from selling cars in the state for 30 days over false advertising related to its Autopilot and Full Self-Driving features.
Furthermore, Tesla is under fire from New York officials over a bylaw change that restricts shareholder lawsuits, drawing criticism for what some investors call a “bait-and-switch” tactic. This legal landscape poses challenges for Elon Musk as he continues to position Tesla as a leader in autonomous driving technology.
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