Tesla Found Liable in Florida Autopilot Trial, Jury Awards $200M in Damages

Tesla has been found partly liable in a federal court in Miami for a fatal 2019 crash involving its Autopilot driver assistance system. The jury assessed punitive damages against Tesla, totaling around $242.5 million. The driver was found to be two-thirds responsible for the crash, and Tesla one-third. This verdict is one of the first major legal decisions against Tesla regarding driver assistance technology.

MIAMI — A federal jury has found Tesla partly liable for a fatal 2019 crash in the Florida Keys, awarding the plaintiffs $242.5 million in damages. The jury concluded that Tesla was responsible for one-third of the blame, with the driver, George McGee, being held two-thirds responsible. The case marks one of the first significant legal decisions against Tesla regarding its driver-assistance technology.

The crash occurred when McGee's Tesla Model S, equipped with Autopilot, failed to stop at a T-intersection in the Florida Keys. Neither the driver nor the Autopilot software activated the brakes in time to prevent the collision, resulting in the death of 20-year-old Naibel Benavides Leon and severe injuries to her boyfriend, Dillon Angulo.

The jury awarded $129 million in compensatory damages and $200 million in punitive damages. Tesla will be responsible for one-third of the compensatory damages, amounting to approximately $42.5 million, and the entirety of the $200 million in punitive damages. However, Tesla has indicated that it will appeal the verdict, stating that the punitive damages are likely to be capped at a lesser amount.

The trial highlighted the ongoing debate surrounding the safety of Tesla's Autopilot system. Tesla has long marketed its driver-assistance software as a significant step forward in automobile safety, but federal regulators and some legal experts have questioned its reliability. The National Highway Traffic Safety Administration has cited a "critical safety gap" in Autopilot, contributing to at least 467 collisions, including 13 fatal crashes.

Tesla maintains that the driver's behavior was the primary cause of the crash, arguing that McGee was distracted by his cell phone and not paying attention to the road. However, plaintiffs' attorneys contended that Tesla oversold the capabilities of Autopilot, leading drivers to become complacent and distracted.

The verdict is a significant setback for Tesla and CEO Elon Musk, who has touted self-driving technology as critical to the company's future. The company faces mounting pressure to resolve Autopilot problems as it ramps up deployment of its robotaxis. Shares of Tesla dipped following the news, closing nearly 2% lower in U.S. markets.

References:
[1] https://www.nbcnews.com/news/us-news/tesla-autopilot-crash-trial-verdict-partly-liable-rcna222344
[2] https://www.marketscreener.com/news/jury-orders-tesla-to-pay-329-million-dollars-for-fatal-autopilot-accident-ce7c5fd3dc8ff020
[3] https://www.bbc.co.uk/news/articles/c93dqpkwx4xo