Tesla has been ordered to pay $375 million in damages to the victims of a fatal 2019 crash caused by an autopilot failure in a Tesla Model S. The company was held liable for 33% of the compensatory damages, while the driver was found liable for 67%. Tesla plans to appeal the verdict, which may impact future cases and the company's efforts to develop autonomous driving technology.
A Florida jury has found Tesla liable to pay $375 million in damages to the victims of a 2019 fatal crash involving a Tesla Model S equipped with Autopilot. The verdict, handed down on Friday, August 1, 2025, marks a significant setback for the electric vehicle (EV) giant and its CEO, Elon Musk.
The jury awarded the estate of Naibel Benavides Leon, as well as her former boyfriend Dillon Angulo, $129 million in compensatory damages and $200 million in punitive damages. Tesla was held liable for 33% of the compensatory damages, amounting to $42.6 million. The driver, George McGee, was found to be 67% liable for the crash but will not have to pay his share as he was not a defendant [1].
The case concerned an incident on April 25, 2019, where McGee drove his 2019 Model S at high speed through an intersection into the victims' parked Chevrolet Tahoe. The jury found that Tesla's Autopilot software did not alert McGee or brake in time to prevent the crash, which resulted in Benavides Leon's death and Angulo's severe injuries [2].
Tesla has maintained that the driver was entirely at fault and that no car in 2019 would have prevented the crash. The company has vowed to appeal the verdict, stating that the trial was a "fiction concocted by plaintiffs’ lawyers" [1].
The verdict is likely to have significant implications for Tesla's future. Experts suggest that it may encourage more legal action against the company and could make future settlements more costly. Moreover, it may impede Musk's efforts to convince investors that Tesla can become a leader in autonomous driving technology [1].
Tesla shares fell 1.8% on Friday following the verdict, and the company's market value has declined by 25% this year. The verdict could also impact the company's efforts to pivot into robotics and artificial intelligence, which are critical to its future growth [1].
References:
[1] https://www.businesstimes.com.sg/companies-markets/transport-logistics/tesla-ordered-florida-jury-pay-us243-million-fatal-autopilot-crash
[2] https://www.nbcnews.com/news/us-news/tesla-autopilot-crash-trial-verdict-partly-liable-rcna222344
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