A Miami jury has found Tesla responsible for a fatal crash involving its Autopilot feature, determining that the company must pay $329 million to the family of a deceased woman and an injured survivor. The incident, which occurred in April 2019, involved a Model S driven by George McGee, who reportedly was distracted just before the collision.
Jurors in the federal district court awarded $129 million in compensatory damages and $200 million in punitive damages to the estate of Naibel Benavides Leon and her former boyfriend, Dillon Angulo. This verdict marks a notable victory for the victims of incidents tied to Tesla’s autonomous driving technology, particularly as Elon Musk’s company pushes forward with plans to expand its robotaxi operations.
Tesla’s shares dropped by 1.8% following the decision, continuing a trend that has seen stock values fall 25% this year. The jury held Tesla accountable for 33% of the compensatory damages, amounting to $42.6 million. Meanwhile, McGee was found liable for 67% of the damages but was not a defendant in the case, meaning he will not face any financial repercussions.
Brett Schreiber, representing the plaintiffs, highlighted the critical issues surrounding the Autopilot feature, stating that Tesla designed it purely for use on controlled-access highways yet failed to adequately restrict its use elsewhere. He expressed that the verdict was a form of justice for Benavides Leon’s tragic passing and Angulo’s long-term injuries.
In response, Tesla announced that it plans to appeal the verdict, calling it flawed and arguing it undermines advancements in automotive safety. The company contended that the outcome could hinder not only its efforts but also those of the automotive industry in developing life-saving technologies.
The plaintiffs had initially aimed for $345 million in damages, and legal experts noted that this case marks the first trial concerning a third-party fatality connected to the Autopilot system. Tesla has faced numerous similar lawsuits in the past, most of which were resolved outside of court.
In a significant development, the jury’s finding could lead to an increase in similar legal actions against the company, potentially resulting in higher costs for future settlements. Alex Lemann, a law professor, emphasized the importance of this case, pointing out that it’s the first time Tesla has faced a judgment related to fatalities associated with its Autopilot technology.
The incident in question involved McGee driving a 2019 Model S at approximately 62 mph when he collided with a parked Chevrolet Tahoe. He reached for a phone that had fallen to the car’s floorboard and allegedly ignored multiple alerts while running stop signs and signals before the crash.
Witness accounts indicated that Benavides Leon was violently thrown from the vehicle, landing around 75 feet from the impact site, while Angulo sustained serious injuries. An engineering professor specializing in autonomous technology noted the jury’s ruling implies a possible defect in the Autopilot software, a substantial finding in the ongoing discussions around self-driving cars.
Tesla, in its defense, insisted that McGee was entirely responsible for the crash and argued that no vehicle at the time, nor today, could have prevented the accident. The company has stated that the focus on Autopilot is misplaced, attributing the blame solely to driver error from the outset.
This ruling not only challenges Tesla’s standing but also casts uncertainty over Musk’s ability to convince investors of the company’s future in autonomous driving and robotics, as its electric vehicle sales continue to decline. The outcome of this case will likely resonate in both the legal landscape and the future of automotive technology.
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