Tesla Shares Drop 1.83% on $27.08 Billion Second-Highest Volume Amid First Trial-Stage Verdict on Autopilot Liability

Tesla (TSLA) closed August 1 with a 1.83% decline, trading at a daily volume of $27.08 billion, the second-highest in the market. The drop followed a Miami federal jury’s ruling that Tesla was partially liable for a 2019 fatal Autopilot crash, ordering the company to pay $329 million in compensatory and punitive damages. The verdict marked the first trial-level judgment against Tesla in a case involving third-party deaths linked to its autonomous driving system. The plaintiffs argued Tesla’s Autopilot was marketed as superior to human driving despite being designed for controlled highways, while the company plans to appeal, calling the ruling a setback for automotive safety innovation.

The ruling could influence ongoing litigation against Tesla, with over a dozen similar cases pending. Analysts noted the verdict may raise future settlement costs for the automaker, as it challenges Elon Musk’s narrative of Autopilot’s safety. The incident involved a Model S driver who lost control while retrieving a dropped phone, leading to a high-speed collision. Experts highlighted the jury’s implication that Autopilot’s software may have contributed to the crash, underscoring regulatory scrutiny over Tesla’s self-driving technology. The National Highway Traffic Safety Administration has separately investigated Autopilot’s performance, including its response to stationary emergency vehicles.

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