Tesla Settles Lawsuits on 2019 California Autopilot Crashes
Tesla (TSLA.O) has reached confidential settlements in two lawsuits stemming from fatal crashes in California in 2019, both of which involved the company’s Autopilot software. The settlements, revealed in court filings, mark the latest chapter in Tesla’s ongoing legal challenges tied to its advanced driver-assistance technology.
These agreements come just weeks after a Florida jury ordered Tesla to pay $243 million in compensatory and punitive damages over another 2019 fatal crash involving a Model S with Autopilot enabled. Tesla has since sought to challenge that verdict, calling it legally unjustified, and requested either dismissal or a new trial.
The timing of these settlements is significant. Much of Tesla’s $1.4 trillion valuation hinges on CEO Elon Musk’s ambitious plans to roll out robotaxis and expand its Full Self-Driving (FSD) software—an upgraded version of Autopilot that underpins Tesla’s autonomous driving vision.
Details of the California Autopilot Crashes
Alameda County Case
One lawsuit was tied to a tragic accident in Alameda County. A 15-year-old boy was traveling with his father when their vehicle was rear-ended by a Tesla Model 3 operating on Autopilot. The force of the collision caused their car to roll over and crash into the center barrier. Sadly, the boy succumbed to his injuries.
Court documents show that a settlement notice was filed Tuesday, just weeks before the case was set to go to trial.
Gardena Case
The second lawsuit involved a December 2019 crash in Gardena, California. In this incident, a Tesla Model S running on Autopilot failed to stop at a red light while traveling at high speed. The vehicle slammed into a Honda Civic, killing two people.
Tesla has now settled with the plaintiffs in this case, but the trial will continue against the Model S driver and other defendants.
Both settlement notices confirmed that the lawsuits would be dismissed upon “satisfactory completion of specified terms.” However, neither disclosed financial details.
Impact of Autopilot Lawsuits on Tesla’s Future
These settlements add to Tesla’s growing list of legal challenges connected to its Autopilot crashes. The company has previously settled several other cases tied to its driver-assistance and self-driving features.
Tesla’s legal strategy has also drawn attention. The automaker rejected a $60 million settlement proposal in the Florida case—only to face a $243 million jury verdict weeks later. This outcome underscores the unpredictable legal and financial risks Tesla faces as it continues to promote its semi-autonomous driving technologies.
The scrutiny extends beyond courtrooms. Regulators and industry analysts have raised concerns about the safety of Tesla’s Autopilot and FSD systems. With Tesla’s self-driving ambitions central to its valuation, these lawsuits could play a pivotal role in shaping investor confidence and regulatory responses.
What Comes Next
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Trials for both California cases were originally scheduled for next month. Following the settlements, the Alameda Superior Court vacated the trial date, while Tesla and the plaintiffs in Los Angeles agreed to withdraw petitions.
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The Gardena case trial will still proceed against the individual driver and other non-Tesla defendants.
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Tesla has not commented on the settlements, and lawyers for the victims’ families have also declined to provide details.
As Tesla continues to navigate the legal challenges surrounding Autopilot, the company’s future hinges on its ability to deliver safe and reliable autonomous driving technology.
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