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Tesla ordered to pay $375 million in fatal autopilot crash

Tesla ordered to pay $375 million in fatal autopilot crash

Victims of a fatal 2019 crash caused by an autopilot failure in a Tesla Model S will receive $US243 million ($375 million) in damages after a jury found Elon Musk's electric vehicle company liable.
Jurors in a Miami federal court on Friday, local time, awarded the estate of Naibel Benavides Leon and her former boyfriend, Dillon Angulo, $US129 million in compensatory damages, plus $US200 million in punitive damages, according to a verdict sheet.
Tesla was held liable for 33 per cent of the compensatory damages, or $US42.6 million.
Jurors found the driver, George McGee, liable for 67 per cent, but he was not a defendant and will not have to pay his share.
"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, a lawyer for the plaintiffs, said in a statement.
"Today's verdict represents justice for Naibel's tragic death and Dillon's lifelong injuries," he added.
Tesla said it will appeal.
"Today's verdict is wrong and only works to set back automotive safety and jeopardise Tesla's and the entire industry's efforts to develop and implement life-saving technology," the company said.
Tesla shares fell 1.8 per cent on Friday, and are down 25 per cent this year.
The plaintiffs had sought $US345 million in damages. Their lawyers said the trial was the first involving the wrongful death of a third party resulting from Autopilot.
Tesla has faced many similar lawsuits over its vehicles' self-driving capabilities, but they have been resolved or dismissed without going to trial.
In June, a judge rejected Tesla's bid to dismiss the Florida case. Experts said Friday's verdict may spur more lawsuits, and could make future settlements more costly.
"It's a big deal," said Alex Lemann, a law professor at Marquette University.
"This is the first time that Tesla has been hit with a judgement in one of the many, many fatalities that have happened as a result of its Autopilot technology."
The verdict could also impede efforts by Mr Musk, the world's richest person, to convince investors that Tesla can become a leader in so-called autonomous driving for private vehicles and robotaxis it plans to start producing next year.
As Tesla's electric vehicle sales fall, much of its nearly $US1 trillion market value hinges on Mr Musk's ability to pivot the company into robotics and artificial intelligence.
The trial concerned an April 25, 2019, incident where Mr McGee drove his 2019 Model S about 100 kilometres per hour through an intersection into the victims' parked Chevrolet Tahoe as they were standing beside it on a shoulder.
Mr McGee had reached down to pick up a cell phone he dropped on his car's floorboard and allegedly received no alerts as he ran a stop sign and stop light before hitting the victims' SUV.
Ms Benavides Leon was allegedly thrown 23 metres to her death, while Mr Angulo suffered serious injuries.
"We have a driver who was acting less than perfectly, and yet the jury still found Tesla contributed to the crash," said Philip Koopman, a Carnegie Mellon University engineering professor and expert in autonomous technology.
"The only way the jury could have possibly ruled against Tesla was by finding a defect with the Autopilot software," he said.
"That's a big deal."
Tesla, in its statement, said Mr McGee was entirely at fault.
"To be clear, no car in 2019, and none today, would have prevented this crash," the company said.
"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."
Reuters
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