NEW YORK — Tesla, the electric vehicle manufacturer led by Elon Musk, is asking a federal court to overturn a substantial $243 million damages verdict awarded to the family of a young woman who died in a crash involving a Tesla vehicle. The incident, which took place during a stargazing outing, has sparked considerable concern regarding the implications for automotive safety and liability.
The filing, submitted in Miami federal court, comes after a jury determined that while the driver of the Tesla was predominantly at fault for the incident, the company’s Autopilot technology contributed to the tragedy. The jury’s findings emphasize that the technology failed to perform as expected, leading to significant liability for Tesla.
In its appeal, the car manufacturer contends that the plaintiff’s attorneys misled the jury by improperly referencing Musk during the trial. Tesla argues that this prejudicial evidence was irrelevant and painted a distorted picture of the case. The company has stated that any evidence not disclosed earlier was unintentional and did not indicate wrongdoing on its part.
Musk’s decision to allow the case to proceed to trial has been seen as a high-stakes gamble for Tesla, which is currently navigating the challenges of promoting its self-driving technology. Despite improvements made since the 2019 incident, the case raises broader questions for automakers that are racing to develop fully autonomous driving systems. Many in the industry worry that this ruling could set a precedent that invites liability for manufacturers, even when drivers act irresponsibly.
Prior to the trial, the plaintiff’s legal team expressed a willingness to settle for $60 million, a proposal Tesla rejected. Ultimately, the jury awarded the family of Naibel Benavides—who tragically lost her life in the crash—significantly more than that amount in both compensatory and punitive damages.
The jury’s verdict held Tesla accountable, determining that its technology was partially responsible, despite the driver’s admission that he had been distracted by his cellphone. The driver has since reached a separate settlement with Benavides’ family. Tesla, however, maintains that its technology had no influence on the accident.
Plaintiffs’ attorneys criticized Tesla’s use of the term “Autopilot,” asserting that it misleads users into overestimating the system’s capabilities. They pointed out that other manufacturers employ terms like “driver assist” to make clear that their technologies do not allow for complete self-driving.
As concerns about Tesla’s terminology mount, European regulators have taken notice, questioning whether the company’s language misleads consumers regarding its driver assistance features. Musk had previously indicated that regulatory approval was expected for a more advanced version of Autopilot, dubbed Full-Self Driving, but that approval has yet to materialize.
In light of this intense scrutiny, the driver involved in the Florida fatality admitted to having misplaced trust in the technology, believing it would alert him to potential hazards. Defense counsel underscored that Tesla instructs users to remain vigilant, asserting that the driver chose to ignore those warnings.
Following the jury’s decision, Tesla’s stock saw a decline of nearly 3.5%, exacerbated by weak sales figures from Europe amidst ongoing boycotts linked to Musk’s political affiliations.
This case could have significant ripple effects in the automotive industry, potentially shaping how manufacturers design and market autonomous driving technologies in the future.
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