Tesla Ordered to Pay $242M Over Autopilot Crash

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Jury finds partial liability in deadly Florida accident

A Miami jury has ruled that Tesla must pay approximately $242.5 million in damages following a fatal 2019 crash involving its Autopilot system. The verdict holds Tesla 33% responsible for the incident, awarding $42.5 million in compensatory damages and $200 million in punitive damages solely against the automaker.

The case centered on a crash in Key Largo where Tesla owner George McGee, using Enhanced Autopilot, lost control of his Model S after dropping his phone. The car accelerated through an intersection and struck two pedestrians. Naibel Benavides, 22, was killed, while her partner Dillon Angulo suffered severe injuries. Plaintiffs claimed Tesla’s software design and misleading safety claims contributed to the tragedy.

Legal arguments target Autopilot marketing and design

Lawyers for the victims argued that Tesla allowed drivers to use Autopilot on roads it wasn’t designed for, despite the system being intended for highways. They cited public statements by Elon Musk suggesting Autopilot was safer than human drivers. The jury sided with the plaintiffs, suggesting Tesla bore partial responsibility for enabling such misuse.

“Tesla’s lies turned our roads into test tracks for their fundamentally flawed technology,” said Brett Schreiber, one of the plaintiffs’ attorneys. Tesla plans to appeal, stating the verdict undermines safety innovation and ignores evidence showing the driver overrode Autopilot and was distracted.

Implications for Tesla and self-driving tech

The ruling arrives as Tesla intensifies efforts to position itself as a leader in autonomous vehicles. CEO Elon Musk has pushed the narrative that Tesla’s Full Self-Driving systems are nearing readiness for public deployment. But the Miami case, along with a growing number of similar lawsuits, challenges the safety record and public messaging around the technology.

The National Highway Traffic Safety Administration (NHTSA) continues to investigate Autopilot safety concerns. The agency has already forced Tesla to issue software updates and is reviewing whether Tesla’s recall fixes were adequate. It has also warned the company about misleading statements regarding vehicle capabilities.

Ongoing scrutiny and growing legal exposure

Legal experts view the Miami verdict as a possible precedent for other Autopilot-related cases. Tesla is currently facing about a dozen similar lawsuits tied to fatal or injurious crashes. The verdict highlights mounting legal and regulatory challenges for the company as scrutiny over its autonomous claims intensifies.

Tesla shares dropped 1.8% following the verdict and are now down 25% year-to-date. The ruling raises questions about investor confidence in Tesla’s self-driving roadmap and exposes potential financial risks tied to ongoing litigation.

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