Key Points
- A Florida jury ordered Tesla to pay $243 million over a fatal 2019 crash.
- The jury found that Tesla’s Autopilot software had a defect that contributed to the crash.
- The verdict is a major blow to Tesla’s reputation and its self-driving technology.
- Tesla plans to appeal the decision, maintaining that the driver was solely at fault.
A Florida jury has ordered Tesla to pay a staggering $243 million to victims of a fatal 2019 crash, finding that the company’s Autopilot driver-assistance software was defective. The verdict is a major blow to Tesla’s reputation. It could create serious roadblocks for its ambitious plans to launch a nationwide robotaxi network.
The case involved a Model S that drove through an intersection and crashed into a parked car, killing the occupants. The driver of the Tesla admitted he was distracted by a dropped cell phone, but claimed he received no warnings from the car as he ran a stop sign.
While Tesla argued the driver was solely at fault and has vowed to appeal, the jury placed partial blame on the company’s technology.
This verdict couldn’t come at a worse time for Tesla. CEO Elon Musk is actively seeking regulatory approval to expand his new robotaxi service across the U.S.. Still, legal experts say this outcome will likely make state regulators much more cautious. The public perception that the technology is unsafe could fuel pressure on officials to slow down approvals and demand more safety data.
Winning the self-driving race is crucial for Tesla. Much of its sky-high stock market valuation is built on the promise of future technologies like robotics and AI.
With demand for its current electric vehicles cooling amid rising competition, the success of its robotaxi service is more important than ever. This “black eye” for the company’s image now casts a long shadow over those plans.
