Tesla Inc. turned down a $60 million settlement in a wrongful death lawsuit tied to its Autopilot system and instead lost an explosive $243 million verdict in court.
The lawsuit stems from a tragic April 2019 crash in Florida, where a Tesla Model S fitted with Autopilot collided with a parked Chevrolet Tahoe, killing 22-year-old Naibel Benavides Leon and severely injuring her boyfriend, Dillon Angulo. A Miami federal jury apportioned 33% of the compensatory damages—roughly $42.6 million—to Tesla, while imposing the full brunt of $200 million in punitive damages, arriving at the staggering total judgment of $243 million.
Court filings reveal that plaintiffs had sought a pre-trial resolution, offering Tesla a $60 million settlement on 30 May 2025. Tesla declined, and the decision proved costly when the jury delivered a verdict far exceeding that figure.
Tesla has vehemently denied any fault. The company plans to appeal, contending that the ruling will hinder the development of life-saving autonomous technology. Additionally, Tesla claims that, under a pre-trial agreement, its maximum exposure should be capped at $172 million. Plaintiffs, however, maintain that the terms should apply to total compensatory damages—including those assigned to other parties—and not only to Tesla’s share.
This case marks a watershed moment, being the first wrongful death lawsuit related to Autopilot that has gone to trial, rather than being settled or dismissed preemptively as previous cases were Reuters. Its outcome—widely viewed as a cautionary example—may embolden plaintiffs in future litigation, raising the stakes for automakers deploying sophisticated driver-assist systems.
For Tesla, the repercussions extend beyond legal fees. Analysts warn the verdict could stall regulatory approval and jeopardize Elon Musk’s broader robotaxi ambitions. The ruling casts doubt on how accurately Tesla’s Autopilot safely handles real-world driving, particularly on unexpected or unsuitable road types.
Source: Reuters
