Tesla has settled a wrongful death lawsuit in Florida stemming from a 2018 high-speed crash that killed a teenage passenger riding in one of the company’s sedans. The settlement resolves the automaker’s role in a case that had been headed to trial.
Background
A trial had been scheduled to begin against the estate of the teenage driver, but Tesla was removed as a defendant in a court order. Lawyers for the plaintiff said in a filing that the claim against Tesla had settled. The case centered on a 2014 Tesla Model S crash that killed both the passenger and the 18-year-old driver.
Details of the Crash
- The driver was traveling about 116 mph on a curve with a 25 mph speed limit when he lost control and slammed into two concrete walls.
- The driver’s parents claimed that a Tesla technician had disabled speed-limiting software without their knowledge, removing a cap that had prevented the car from traveling faster than 85 mph.
- Tesla denied wrongdoing and argued that the driver’s “reckless” operation caused the crash, “with or without a speed limiter.”
Settlement and Its Implications
The Florida settlement adds to a growing list of crash-related lawsuits involving Tesla vehicles. Tesla has resolved other wrongful death lawsuits, including one filed by the estate of a man killed in 2021 after his Tesla crashed and caught fire. In a separate Florida case, a federal judge upheld a $243 million verdict tied to a 2019 crash involving an Autopilot-equipped Model S.
Ongoing Legal Pressures
Tesla faces more than 21 active lawsuits, including wrongful death claims, cases over its self-driving and driver-assistance systems, and racial discrimination allegations. The company’s potential exposure is estimated to be between $2.1 billion and $14.5 billion.
Stock Performance
Tesla stock continues to show strong long- and short-term price trends, but its medium-term trend remains negative, alongside a weak value ranking. Tesla shares fell 2.03% to $392.50 on Monday, dipping another 0.025% in after-hours trading.