A jury in Miami has determined that Tesla should be held partly liable for a fatal 2019 Autopilot crash, and must compensate the family of the deceased and an injured survivor a portion of $329 million in damages.
Tesla’s payout is based on $129 million in compensatory damages, and $200 million in punitive damages against the company.
The jury determined Tesla should be held 33% responsible for the fatal crash. That means the automaker would be responsible for about $42.5 million in compensatory damages. In cases like these, punitive damages are typically capped at three times compensatory damages.
The plaintiffs’ attorneys told CNBC on Friday that because punitive damages were only assessed against Tesla, they expect the automaker to pay the full $200 million, bringing total payments to around $242.5 million.
Tesla said it plans to appeal the decision.
Attorneys for the plaintiffs had asked the jury to award damages based on $345 million in total damages. The trial in the Southern District of Florida started on July 14.
The suit centered around who shouldered the blame for the deadly crash in Key Largo, Florida. A Tesla owner named George McGee was driving his Model S electric sedan while using the company’s Enhanced Autopilot, a partially automated driving system.
While driving, McGee dropped his mobile phone that he was using and scrambled to pick it up. He said during the trial that he believed Enhanced Autopilot would brake if an obstacle was in the way. His Model S accelerated through an intersection at just over 60 miles per hour, hitting a nearby empty parked car and its owners, who were standing on the other side of their vehicle.
Naibel Benavides, who was 22, died on the scene from injuries sustained in the crash. Her body was discovered about 75 feet away from the point of impact. Her boyfriend, Dillon Angulo, survived but suffered multiple broken bones, a traumatic brain injury and psychological effects.
“Tesla designed Autopilot only for controlled access highways yet deliberately chose not to restrict drivers from using it elsewhere, alongside Elon Musk telling the world Autopilot drove better than humans,” Brett Schreiber, counsel for the plaintiffs, said in an e-mailed statement on Friday. “Tesla’s lies turned our roads into test tracks for their fundamentally flawed technology, putting everyday Americans like Naibel Benavides and Dillon Angulo in harm’s way.”
Following the verdict, the plaintiffs’ families hugged each other and their lawyers, and Angulo was “visibly emotional” as he embraced his mother, according to NBC.
Here is Tesla’s response to CNBC:
“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 life-saving technology. We plan to appeal given the substantial errors of law and irregularities at trial.
Even though this jury found that the driver was overwhelmingly responsible for this tragic accident in 2019, the evidence has always shown that this driver was solely at fault because he was speeding, with his foot on the accelerator – which overrode Autopilot – as he rummaged for his dropped phone without his eyes on the road. To be clear, no car in 2019, and none today, would have prevented this crash.
This was never about Autopilot; it was a fiction concocted by plaintiffs’ lawyers blaming the car when the driver – from day one – admitted and accepted responsibility.”
The verdict comes as Musk, Tesla’s CEO, is trying to persuade investors that his company can pivot into a leader in autonomous vehicles, and that its self-driving systems are safe enough to operate fleets of robotaxis on public roads in the U.S.
Tesla shares dipped 1.8% on Friday and are now down 25% for the year, the biggest drop among tech’s megacap companies.
The verdict could set a precedent for Autopilot-related suits against Tesla. About a dozen active cases are underway focused on similar claims involving incidents where Autopilot or Tesla’s FSD— Full Self-Driving (Supervised) — had been in use just before a fatal or injurious crash.
The National Highway Traffic Safety Administration initiated a probe in 2021 into possible safety defects in Tesla’s Autopilot systems. During the course of that investigation, Tesla made changes, including a number of over-the-air software updates.
The agency then opened a second probe, which is ongoing, evaluating whether Tesla’s “recall remedy” to resolve issues with the behavior of its Autopilot, especially around stationary first responder vehicles, had been effective.
The NHTSA has also warned Tesla that its social media posts may mislead drivers into thinking its cars are capable of functioning as robotaxis, even though owners manuals say the cars require hands-on steering and a driver attentive to steering and braking at all times.
A site that tracks Tesla-involved collisions, TeslaDeaths.com, has reported at least 58 deaths resulting from incidents where Tesla drivers had Autopilot engaged just before impact.
Read the jury’s verdict below.
