A 3-D printed miniature model of Musk and Tesla Logo PHOTO: Reuters
A Florida jury on Friday found Tesla Inc liable for $243 million in damages to victims of a 2019 fatal crash involving an Autopilot-equipped Model S, in a verdict that may spur further lawsuits against Elon Musk’s company.
Jurors in Miami federal court awarded $129 million in compensatory damages to the estate of Naibel Benavides Leon and her former boyfriend Dillon Angulo, plus $200 million in punitive damages.
Tesla was held 33 per cent responsible for the compensatory award (about $42.6 million), while driver George McGee was deemed 67 per cent liable but is not a defendant and will not pay his share.
Tesla shares fell 1.8 per cent on Friday and are down 25 per cent year-to-date. Plaintiffs had sought $345 million, and their lawyers said this was the first wrongful-death trial tied to Tesla’s Autopilot feature.
“Tesla designed Autopilot only for controlled-access highways yet chose not to restrict its use elsewhere,” said Brett Schreiber, lead counsel for the plaintiffs. “Today’s verdict represents justice for Naibel’s tragic death and Dillon’s lifelong injuries.” Tesla said it will appeal, calling the verdict “wrong” and warning it could hinder life-saving technology efforts.
Legal experts predict the decision will encourage more suits and increase settlement costs. It could also challenge Musk’s push to launch a robotaxi service next year based on enhanced driver-assist software.
The case stems from an April 25, 2019 crash in which McGee, driving at about 62 mph, ran a stop sign and light while reaching for a dropped cellphone. No Autopilot warnings sounded before his Model S struck the victims’ parked Chevrolet Tahoe. Leon was thrown 75 feet to her death; Angulo suffered serious injuries.
“This verdict implies a defect in the Autopilot software,” said Philip Koopman, a Carnegie Mellon autonomous-systems expert. Tesla maintains McGee “accepted responsibility” and that no vehicle in 2019 and none today, would have prevented the collision.