Tesla Ordered to Pay $240 Million in Autopilot Crash Lawsuit

A Miami jury ordered Tesla to pay over $240 million in damages in a case involving its Autopilot driver assist technology. The jury held Tesla partly responsible for a deadly crash in Florida, despite the driver admitting to distraction. The decision comes as Tesla plans to roll out a driverless taxi service. The case is seen as significant, as many similar cases against Tesla have been dismissed or settled.

A Miami jury has ordered Tesla to pay over $240 million in damages following a deadly crash involving its Autopilot driver-assist technology. The verdict, handed down on July 2, 2025, marks a significant milestone for the electric vehicle (EV) industry, as it holds Tesla partly responsible for the incident despite the driver admitting to distraction [1].

The crash occurred on April 25, 2019, when a Tesla Model S driven by George McGee collided with a parked Chevrolet Tahoe. The collision resulted in the death of Naibel Benavides Leon and severe injuries to Dillon Angulo. McGee was found to have activated Autopilot and taken his eyes off the road for several seconds before the crash [2].

The jury held Tesla 33% liable for the crash, arguing that the company's marketing of Autopilot gave users a false sense of security. The plaintiffs successfully contended that Tesla's branding misled McGee into overestimating the capabilities of Autopilot, leading him to believe it could handle complex intersections without his constant attention [1].

This ruling comes at a critical time for Tesla, as the company plans to roll out a driverless taxi service in the coming months. The verdict may impact Tesla's reputation and potentially deter investors, as it signals a shift in how courts are treating semi-autonomous systems [2].

Tesla has already faced numerous lawsuits related to Autopilot, but this is the first time the company has been held liable for a fatality. The verdict could set a legal precedent, encouraging other litigants to pursue similar cases against Tesla and other manufacturers developing advanced driver-assistance systems [2].

The $240 million judgment includes $129 million in compensatory damages and $111 million in punitive damages. Tesla has indicated that it plans to appeal the decision. The company's shares fell 1.8% on the day of the verdict, reflecting investor concerns about the potential impact on future earnings [3].

The case highlights the ongoing debate surrounding the safety and reliability of semi-autonomous systems. As Tesla and other automakers continue to develop and deploy these technologies, it is crucial that they clearly communicate the limitations of their systems and ensure that drivers are aware of their responsibilities [4].

References:
[1] https://coolest-gadgets.com/tesla-autopilot-liability-2019-florida-crash-verdict/
[2] https://www.cnn.com/2025/08/01/business/tesla-autopilot-crash-lawsuit
[3] https://www.newindianexpress.com/business/2025/Aug/02/tesla-fined-over-240-million-in-fatal-autopilot-crash-case
[4] https://www.electrive.com/2025/08/01/tesla-launches-ride-hailing-service-in-san-francisco/