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Tesla has reached confidential settlements in two wrongful death lawsuits tied to its Autopilot driver-assistance software, according to court filings. The cases involved fatal crashes in California in 2019 and were both set to go to trial next month.
The first case stemmed from a crash in Alameda County, where a Tesla Model 3 on Autopilot rear-ended a vehicle, causing it to flip and strike a center barrier. A 15-year-old boy traveling with his father died from injuries sustained in the accident. The second case, filed in Los Angeles County, involved a Tesla Model S running a red light at high speed in Gardena, California, and colliding with a Honda Civic, killing two passengers.
Court documents reveal that Tesla reached agreements to dismiss both lawsuits after “satisfactory completion of specified terms,” though settlement amounts were not disclosed. In the Gardena case, litigation will continue against the driver of the Model S and other defendants, even as Tesla exits the proceedings.
These settlements come just weeks after a Florida jury ordered Tesla to pay $243 million in compensatory and punitive damages for another 2019 Autopilot-related crash. Tesla had previously rejected a $60 million settlement proposal in that case and has since hired new attorneys to appeal the ruling, arguing the verdict was legally unjustified.
The outcomes of these lawsuits carry weight for Tesla’s long-term vision. CEO Elon Musk has tied much of the company’s $1.4 trillion market valuation to the future of self-driving technology, including Autopilot and its more advanced version, Full Self-Driving (FSD). Tesla has already faced multiple lawsuits over Autopilot safety, and while the company did not comment on the California settlements, the timing underscores rising legal and financial risks tied to its autonomous driving ambitions.
