Jury in Florida mandates Tesla to provide $329 million compensation following a fatal accident
In a significant legal ruling, a Miami jury has ordered Tesla to pay $329 million in damages following a fatal crash involving an Autopilot-equipped Model S in 2019. This marks the first time Tesla has been held liable for damages in a fatal Autopilot-related incident.
The crash occurred on April 25th, 2019, when George McGee, driving a Tesla Model S on Autopilot, collided with a parked Chevrolet Tahoe on the shoulder of the road. The impact claimed the life of Naibel Benavides Leon and seriously injured Dillon Angulo, who were standing near the vehicle.
Tesla maintains that Mr. McGee was entirely at fault for the crash, arguing that no car in 2019 would have prevented it. However, the jury found Tesla partly liable, assessing the company's liability at 33% for the compensatory damages, amounting to about $42.6 million. The jury also awarded $200 million in punitive damages, bringing Tesla's total liability to approximately $242.6 million.
The jury's verdict could have far-reaching implications for Tesla. The company, which plans to start producing robotaxis next year, has seen a decline in electric vehicle sales, and much of its market value depends on Elon Musk's ability to pivot the company into robotics and artificial intelligence. This verdict could potentially impede Musk's efforts to convince investors that Tesla can become a leader in autonomous driving and robotaxis.
The trial, the first involving the wrongful death of a third party resulting from Autopilot, could also spur more lawsuits and make future settlements more costly. Philip Koopman, a Carnegie Mellon University engineering professor and expert in autonomous technology, stated that the jury's decision suggests a defect with Tesla's Autopilot software.
Tesla has stated that it will appeal the verdict. The plaintiffs, the estate of Naibel Benavides Leon and her former boyfriend Dillon Angulo, had initially sought $345 million in damages. The jury ordered Tesla to pay $129 million in compensatory damages and $200 million in punitive damages.
It is worth noting that George McGee was found liable for 67% of the compensatory damages, but as he was not a defendant, he will not have to pay his share of the damages.
This case highlights ongoing legal and safety scrutiny over Tesla's self-driving features. Despite facing similar lawsuits in the past, this case is notable for the large punitive damages awarded and may influence public perception, regulatory focus, and Tesla’s liability in future incidents involving autonomous driving technology.
[1] Tesla Faces Landmark $329 Million Verdict in Autopilot Fatal Crash Case
[2] Tesla ordered to pay $329 million in Florida Autopilot crash case
[1] The verdict in the Florida Autopilot crash case requires Tesla to pay $329 million, marking a significant financial impact as the company looks to venture into technology-driven fields like robotics and artificial intelligence.
[2] The jury's decision in the Tesla Autopilot fatal crash case has awarded $329 million in damages, a ruling that could potentially affect Tesla's future in sports (automobile industry) and technology, including its plans for robotaxis.
