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A Florida jury has ordered Tesla (NASDAQ: TSLA) to pay $243 million in damages over a 2019 fatal crash involving its Autopilot system, marking a rare legal defeat for the electric vehicle maker. The case centered on a Model S collision that killed Naibel Benavides Leon and severely injured Dillon Angulo.
Jurors in Miami federal court awarded $129 million in compensatory damages and $200 million in punitive damages, holding Tesla liable for 33% of the compensatory amount, or $42.6 million. The driver, George McGee, was found 67% liable but is not required to pay damages.
The lawsuit alleged Tesla failed to limit Autopilot’s use to controlled-access highways, despite CEO Elon Musk’s public claims that the system drove better than humans. The crash occurred when McGee, distracted by a dropped cellphone, ran a stop sign and collided with the victims’ parked SUV.
Tesla denied responsibility and vowed to appeal, arguing no vehicle in 2019—or today—could have prevented the accident and asserting the driver was solely at fault.
Legal experts say the ruling could set a precedent, encouraging more lawsuits over Tesla’s driver-assistance technology. It comes as the company faces heightened scrutiny of its self-driving claims and a challenging EV market, with shares down 25% this year.
The verdict may also impact Musk’s ambitious plans to expand Tesla’s robotaxi business and autonomous driving program, key drivers of the company’s nearly $1 trillion valuation.
This is the first jury verdict holding Tesla liable for a fatal crash linked to Autopilot, raising questions about the safety and regulation of semi-autonomous vehicles as Tesla accelerates development of AI-driven transportation.
