Jury orders Tesla to pay more than $240m in landmark autopilot crash case

The federal jury in Miami has ruled Tesla partially liable for a fatal 2019 crash involving its Autopilot system.

The court ordered the company to pay more than $240 million in damages. Previously, similar cases had been dismissed or settled marking this decision as a rare courtroom loss for Tesla.

The case originated from a fatal collision in Key Largo, Florida, where driver George McGree, distracted by his phone, hit a parked Chevrolet Tahoe at a speed of 62 mph.

Inside the car, there was a 22-year-old Naibel Benavides Leon and her boyfriend, Dillon Angulo. The deadly accident killed the girl and severely injured the guy.

While the driver McGee admitted fault, the jury found Tesla’s autopilot system was unsuccessful in preventing the crash, assigning the company significant blame.

Plaintiffs argued that Tesla had misled users by branding its system “Autopilot” as having full self-driving capability.

In addition, the suitor also accused the company of hiding critical crash data as Tesla initially denied having forensic experts uncover video and sensor evidence.

Such a verdict can embolden future lawsuits against Tesla and other automakers that develop autonomous technology.

Attorney Miguel Custodio said, “This will open the floodgates,” as such cases rarely reach trials.

The victim’s sister, Neima Benavides, also appreciated the decision of the jury stating: “ We finally learned what happened that night, that the car was actually defective, justice was achieved.”

Responding to the ruling, Tesla said in a statement: “Today's verdict is wrong,” and “only works to set back automotive safety and jeopardize Tesla's and the entire industry's efforts to develop and implement lifesaving technology.”

Company officials also said that the plaintiffs concocted a story “blaming the car when the driver, from day one, admitted and accepted responsibility.”

Tesla also pleaded to pay $172 million instead of $240 million though plaintiffs never agreed to this.

The case presents a stark contradiction to Tesla’s safety claims as CEO Elon Musk has pushed for fully driverless taxis. However, the court ruling underscores for stricter transparency in autonomous vehicle marketing.