Tesla Found Liable in 2019 Fatal Autopilot Crash Ordered to Pay $243 Million in Damages

A Miami federal jury has ruled that Tesla is partially liable for a fatal crash in 2019 that occurred on a dark, rural road in Key Largo, Florida, ordering the company to pay $243 million in damages to the victims. The verdict includes $200 million in punitive damages and $43 million of a total $129 million in compensatory damages. The ruling, analysts say, could set a precedent for how liability is assigned in cases involving self-driving technology, sending "shock waves" through the industry [1].

The case, which took four years to reach trial, involved a collision in which 22-year-old Naibel Benavides Leon was killed and her boyfriend, Dillon Angulo, was seriously injured. The plaintiffs argued that Tesla failed to disengage Autopilot despite signs of driver distraction and allowed its use on a road not designed for the technology. They also claimed the company withheld or lost key data, including video and sensor information recorded moments before the crash. Tesla denied these allegations but admitted to making a mistake after evidence was uncovered by a forensic expert hired by the plaintiffs.

The jury found that while driver George McGee was negligent—admitting he was distracted by his cellphone—the vehicle’s failure to respond to the imminent danger also contributed to the crash. The plaintiffs’ lead lawyer, Brett Schreiber, emphasized that Tesla’s use of the term "Autopilot" risked misleading drivers into believing the system could fully handle driving tasks, when in reality, it only assisted with lane changes and speed adjustments. “Words matter,” Schreiber said, adding that Tesla’s terminology “plays fast and loose with information and facts.”

Tesla has stated it will appeal the verdict, arguing that the ruling is “wrong” and could undermine efforts to develop self-driving technology. The company also noted that a pre-trial agreement limits punitive damages to three times its compensatory liability, reducing the potential payout to $172 million. However, the plaintiffs claim the agreement applied to all compensatory damages, not just Tesla’s share, meaning the full $243 million could still be due.

The verdict has sparked broader industry concerns about liability in autonomous driving. If companies are held legally responsible for accidents even when drivers admit to reckless behavior, it could reshape how liability is approached as self-driving technology becomes more widespread. Financial analyst Dan Ives of Wedbush Securities called the decision a “big number that will send shock waves to others in the industry” and said, “It’s not a good day for Tesla.”

Tesla has faced similar claims from families of other crash victims, with critics alleging the company is slow to release critical data. In this case, however, the plaintiffs were able to demonstrate that Tesla had possessed the evidence all along. The verdict may embolden other victims or families to pursue legal action, according to Miguel Custodio, a car crash lawyer not involved in the case.

The Miami trial also highlighted the broader issue of trust in Tesla’s technology and its messaging. Defense attorney Joel Smith argued that McGee ignored Tesla’s clear warnings to keep his hands on the wheel and eyes on the road, and that the crash was solely due to his cellphone distraction. However, the jury’s decision suggests that the company’s technology and its communication about its capabilities played a role in the tragedy.

The case is particularly significant as Tesla moves forward with plans to roll out a driverless taxi service in multiple cities. The ruling could complicate those efforts by raising questions about the safety and reliability of its autonomous systems. Whether the verdict ultimately harms Tesla’s reputation remains uncertain, especially since the company has made technological improvements since the 2019 incident.

Source: [1] https://fortune.com/2025/08/02/tesla-autopilot-crash-jury-trial-verdict-243-million-shock-waves-industry/