Miami, Fla. — A jury has ruled that Tesla is partially responsible for a fatal crash involving its Autopilot feature in 2019, ordering the company to pay $329 million in damages to the family of the deceased and an injured survivor. The jury concluded that Tesla should cover 33% of the liability, which translates to approximately $42.5 million in compensatory damages.
The awarded damages consist of $129 million designated for compensatory claims and an additional $200 million for punitive damages. Since the punitive damages were assessed solely against Tesla, attorneys for the plaintiffs anticipate the automaker will need to fulfill the full $200 million obligation. This would bring the total payment to approximately $242.5 million, pending an appeal it has announced it will pursue.
The trial took place in the Southern District of Florida, beginning on July 14, and scrutinized the events surrounding a deadly incident in Key Largo. George McGee was driving his Tesla Model S while engaged with the Enhanced Autopilot feature when he dropped his phone. He testified that he believed the system would stop the car if it encountered an obstacle. However, his vehicle accelerated through an intersection at just over 60 mph, colliding with a parked car and the individuals near it.
Naibel Benavides, 22, died at the scene, with her body found about 75 feet from the point of impact. Her boyfriend, Dillon Angulo, survived the crash but sustained several severe injuries, including multiple broken bones and a traumatic brain injury.
Brett Schreiber, representing the plaintiffs, criticized Tesla’s decisions regarding its Autopilot feature, stating that the company knew the system was designed primarily for controlled access highways but permitted its use in other scenarios. “Tesla’s irresponsible choices turned public roads into testing grounds for flawed technology,” Schreiber said.
After the verdict was announced, emotional scenes unfolded as families embraced their loved ones and legal representatives. Angulo, visibly moved, shared a moment of comfort with his mother.
In response, Tesla contended that the verdict misrepresents the circumstances surrounding the accident. The company stated it plans to challenge the ruling, citing what it considers significant legal errors during the trial. They argue the driver bore the bulk of the responsibility due to his actions leading up to the crash, emphasizing that no vehicle at the time would have prevented the incident.
This verdict arrives at a pivotal moment for Tesla’s CEO Elon Musk, who aims to reassure investors of the company’s capacity to lead in autonomous vehicle technology. Following the news, Tesla’s stock saw a decline of 1.8%, part of a broader trend that has seen the company’s shares drop 25% for the year.
Legal experts suggest this verdict could set a significant precedent for future cases involving Tesla’s technology, with numerous similar lawsuits in the pipeline. The National Highway Traffic Safety Administration is currently investigating the safety of Tesla’s Autopilot systems, amidst concerns about how changes and updates may address identified flaws.
In addition to the company-specific scrutiny, NHTSA has also voiced concerns regarding Tesla’s marketing communications, suggesting that messages may mislead drivers about the capabilities of their vehicles, despite warnings in user manuals.
Furthermore, data compiled by TeslaDeaths.com indicates at least 58 fatalities have occurred in incidents where Autopilot was active prior to a crash. The implications of this ruling may extend beyond individual cases, potentially influencing regulations and public perceptions of autonomous driving technology.
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