Tesla rejected $60M settlement before being hit with $243M in damages for autopilot verdict

[Tesla Cybertruck display at a dealership. Tesla offers the Cybertruck with driving range of up to 340 miles.]
jetcityimage

Tesla (NASDAQ:TSLA [https://seekingalpha.com/symbol/TSLA]) rejected a proposed $60 million settlement in a lawsuit related to a fatal 2019 crash involving its Autopilot system, but after going to trial, the company was hit with a far larger $243 million verdict by a Miami jury.

The lawsuit arose from an April 2019 crash in Florida, where a Tesla Model S equipped with Autopilot struck victims standing beside a parked Chevrolet Tahoe as they were standing beside it.

As part of their demand for legal fees from Tesla (NASDAQ:TSLA [https://seekingalpha.com/symbol/TSLA]), the plaintiffs' attorneys revealed the settlement plan in a filing [https://fingfx.thomsonreuters.com/gfx/legaldocs/gdpzbbzkkpw/BENAVIDES%20v%20Tesla%2020250825.pdf] on Monday. Plaintiffs alleged that Tesla's Autopilot system failed to adequately perform and that the company overstated the system’s capabilities, leading to misuse and a lack of driver supervision.

The jury found Tesla (TSLA [https://seekingalpha.com/symbol/TSLA]) liable for 33% of $129 million in compensatory damages ($42.6 million) and the entire $200 million in punitive damages, bringing Tesla's (TSLA [https://seekingalpha.com/symbol/TSLA]) total liability to $243 million. Jurors found the driver liable for 67% of the compensatory damages, but he was not a defendant.

Tesla has denied any wrongdoing and added that the verdict “only works to set back automotive safety and jeopardize Tesla's and the entire industry's efforts to develop and implement life-saving technology.”

Overall, Tesla’s (TSLA [https://seekingalpha.com/symbol/TSLA]) rejection of a $60 million settlement sharply increased its legal exposure and highlighted wider industry and regulatory risks surrounding autonomous technologies.

MORE ON TESLA

* Tesla: I Reread Charles Munger When In Doubt [https://seekingalpha.com/article/4814891-tesla-i-reread-charles-munger-when-in-doubt]
* Tesla: Just Another Automaker [https://seekingalpha.com/article/4814827-tesla-just-another-automaker]
* Tesla: The Fatal Mistake Bears And Shorts Keep Making [https://seekingalpha.com/article/4814046-tesla-the-fatal-mistake-bears-and-shorts-keep-making]
* xAI ended public benefit corporation status amid battle with OpenAI: report [https://seekingalpha.com/news/4488719-xai-ended-public-benefit-corporation-status-amid-battle-with-openai-report]
* Tesla to integrate Deepseek, Doubao AI in Chinese EVs -- Bloomberg [https://seekingalpha.com/news/4488276-tesla-to-integrate-deepseek-doubao-ai-in-chinese-evs]