Tesla Inc., led by CEO Elon Musk, has been ordered to pay $243 million in damages following a fatal 2019 Autopilot crash. This verdict comes after the company rejected a $60 million settlement offer. The case stems from an April 2019 crash in Key Largo, Florida, where a Tesla Model S equipped with Autopilot struck a parked Chevrolet Tahoe.
Settlement Rejection Costly for EV Giant
The settlement proposal was made on May 30, according to plaintiffs’ lawyers filing for legal fees in Miami federal court. The driver, George McGee, was looking down to retrieve his dropped phone when the vehicle failed to stop at an intersection, resulting in the death of 22-year-old Naibel Benavides Leon and severe injuries to her boyfriend Dillon Angulo.
Jury Awards Massive Damages in Landmark Case
The jury awarded $129 million in compensatory damages and $200 million in punitive damages to the estate of Naibel Benavides Leon and her boyfriend Dillon Angulo. Tesla was held liable for 33% of compensatory damages ($42.6 million) and all punitive damages ($200 million). McGee bore responsibility for 67% of compensatory damages but was not a defendant in the case.
First Third-Party Autopilot Death Trial
This marks the first trial involving a third-party wrongful death related to Tesla’s Autopilot system, potentially setting a precedent for future autonomous vehicle litigation. Tesla engineer Akshay Pathak testified that the company failed to maintain Autopilot crash records until 2018, three years after launching the feature.
Tesla Plans Appeal Amid Mounting Legal Challenges
Tesla denied wrongdoing and announced plans to appeal, stating that the verdict “only works to set back automotive safety and jeopardize Tesla’s and the entire industry’s efforts to develop and implement life-saving technology.” The company faces additional legal pressure, including a 30-day sales ban threat from California’s DMV over alleged false advertising regarding Autopilot capabilities, and a lost bid to dismiss a class-action lawsuit over misleading Full Self-Driving claims.
Key Points:
- Tesla ordered to pay $243 million in damages
- Company rejected $60 million settlement offer
- First trial involving a third-party wrongful death related to Autopilot system
- Tesla plans to appeal the verdict
- Company faces additional legal pressure over Autopilot capabilities and Full Self-Driving claims