Tesla Cited As Partly Responsible for Deadly Crash
A Miami jury has found Tesla partially liable for a fatal crash involving its Autopilot driver-assistance system and has ordered the company to pay more than $240 million in damages to the victims.
The crash occurred in 2019 and involved a Tesla Model S operating in Autopilot mode. According to the jury, the vehicle failed to brake, resulting in the death of a pedestrian and injuries to another.
The driver testified that he became distracted after dropping his cell phone just as the Tesla, with Autopilot engaged, entered an intersection and collided with a parked SUV near the victims. Both the driver and the Autopilot system failed to apply the brakes, and the driver claimed the vehicle issued no warning before the impact, vehicle-focused outlet Hemmings reported.
Tesla’s Autopilot system was found partially responsible for the 2019 crash, and the company has been ordered to pay $242.5 million in damages. Of that amount, $42.5 million is designated for compensatory damages, while $200 million was awarded as punitive damages.
According to court filings from the plaintiff’s lawyer, “Tesla advertised Autopilot in a way that greatly exaggerated its capabilities and hid its deficiencies encouraging Tesla drivers to over-rely on its Autopilot system.”
Despite the labels “Autopilot,” “Enhanced Autopilot,” and “Full Self-Driving,” all of Tesla’s semi-autonomous systems still require drivers to remain fully attentive. Drivers must stay in control of the vehicle at all times and be prepared to take over the steering wheel whenever necessary.
Tesla announced its intention to challenge the verdict, asserting that full responsibility rests with the driver. The company stated that the driver’s foot was on the accelerator during the crash, which overrides Autopilot’s warning and braking systems.
“To be clear, no car in 2019, and none today, would have prevented this crash,” Tesla told BBC. “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.”
Tesla is also facing several ongoing lawsuits related to allegations of deceptive marketing surrounding its Autopilot system. In France, the company could be fined up to $58,000 per day. In California, a separate lawsuit could result in a temporary ban on Tesla vehicle sales for up to 30 days. Additionally, Tesla’s Robotaxi fleet has reportedly been operating in violation of traffic laws, Hemmings reported.
Meanwhile, Tesla unveiled a new $29 billion pay package for CEO Elon Musk.
Tesla’s board announced Monday that it has awarded Elon Musk a “good faith” CEO performance package consisting of 96 million restricted shares—valued at just over $29 billion based on current stock prices.
The move comes as Musk’s 2018 compensation plan, estimated to be worth $46.8 billion as of June, remains in legal limbo following a Delaware judge’s decision to void it last December.
In a letter to shareholders, board members Robyn Denholm and Kathleen Wilson-Thompson defended the new award, saying it is essential to “retain and incentivize” Musk amid an “ever-intensifying AI talent war.”
“The war for AI talent is intensifying, with recent months including multi-billion-dollar acquisitions of companies and nine-figure cash compensation packages for non-founder, individual AI engineers,” Denholm and Wilson-Thompson wrote.
“Even among this group of highly talented individuals, no one matches Elon’s remarkable combination of leadership experience, technical expertise, and, arguably most importantly, decades-long proven track record of building the most revolutionary and profitable businesses across different industries,” they added.
Both Musk and Tesla have strongly opposed the decision to void the 2018 pay package following a shareholder lawsuit, with Musk filing an appeal in March to challenge the ruling, Business Insider reported.
In a filing with the Securities and Exchange Commission, also shared on X, Tesla board members stated that the new $29 billion “CEO Interim Award” includes a condition requiring Elon Musk to remain in a senior leadership role at Tesla throughout the two-year vesting period.
