Tesla Signs $4.3 Billion Battery Supply Contract With LG Energy
The batteries will be manufactured at the South Korean company's US plants but not be used in vehicles, the person said Wednesday, speaking on condition of anonymity as the information is not yet public. The end use will be for energy storage systems, the person said.
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Yahoo
an hour ago
- Yahoo
Tesla ordered by Florida jury to pay $243 million in fatal Autopilot crash
By Jonathan Stempel and Abhirup Roy (Reuters) -A Florida jury on Friday found Tesla liable to pay $243 million to victims of a 2019 fatal crash of an Autopilot-equipped Model S, a verdict that could encourage more legal action against Elon Musk's electric vehicle company. The verdict is a rare win for victims of accidents involving Autopilot. Musk has been pushing to rapidly expand Tesla's recently launched robotaxi business based on an advanced version of its driver assistance software. Tesla shares fell 1.8% on Friday, and are down 25% this year. Jurors in Miami federal court awarded the estate of Naibel Benavides Leon, as well as her former boyfriend Dillon Angulo, $129 million in compensatory damages plus $200 million in punitive damages, according to a verdict sheet. Tesla was held liable for 33% of the compensatory damages, or $42.6 million. Jurors found the driver George McGee liable for 67%, 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 jeopardize Tesla's and the entire industry's efforts to develop and implement life-saving technology," the company said. The plaintiffs had sought $345 million of damages. Their lawyers said the trial was the first involving the wrongful death of a third party resulting from Autopilot. IMPACT ON FUTURE CASES Tesla has faced many similar lawsuits over its vehicles' self-driving capabilities, but they have been resolved or dismissed without getting 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 judgment in one of the many, many fatalities that have happened as a result of its Autopilot technology." The verdict could also impede efforts by Musk, the world's richest person, to convince investors that Tesla can become a leader in so-called autonomous driving for private vehicles as well as robotaxis it plans to start producing next year. As Tesla's electric vehicle sales fall, much of its nearly $1 trillion market value hinges on Musk's ability to pivot the company into robotics and artificial intelligence. DRIVER'S ROLE The trial concerned an April 25, 2019 incident where George McGee drove his 2019 Model S at about 62 mph (100 kph) through an intersection into the victims' parked Chevrolet Tahoe as they were standing beside it on a shoulder. McGee had reached down to pick up a cellphone 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. Benavides Leon was allegedly thrown 75 feet (23 meters) to her death, while 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 added. "That's a big deal." Tesla, in its statement, said 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."
Yahoo
a day ago
- Yahoo
Elon Musk Warns of Losing Tesla Control, Denies Personal Loans Tied To Shares
Elon Musk, the CEO of Tesla Inc. (NASDAQ:TSLA), has expressed concerns over potentially losing control of the electric vehicle giant due to the influence of activist shareholders. What Happened: Musk, who currently owns a 12.8% stake in Tesla, is apprehensive about being dethroned by shareholders who may not align with his vision for the company's future. He suggests that a 25% ownership stake would offer him adequate influence, while still leaving room for his possible removal. Musk's fears are rooted in past instances where shareholders voted in favor of a compensation package tied to the company's growth targets, only to be overruled by Delaware Chancery Court Judge Kathaleen McCormick. Earlier in January in a post on X, he shared that about 25 percent ownership stake would be enough "to be influential, but not so much that I can't be overturned.'Musk has the opportunity to acquire an additional 304 million shares, which would boost his voting control by roughly 4% post-tax. Also Read: Elon Musk Returns To Intense Work Schedule: 'Back To Working 7 Days a Week and Sleeping in the Office' In a recent statement on Friday on X, Musk affirmed that he has no personal loans against Tesla stock and reiterated his anxieties about being ousted by 'activist shareholders'. He expressed optimism that these concerns would be addressed at the forthcoming shareholders' are rumors that Musk may resign if his ownership stake is curtailed, akin to the limitations imposed on his pay package. Nonetheless, a majority of shareholders who endorsed Musk's pay package continue to support his leadership of Tesla's operations. Why It Matters: Musk's concerns highlight the potential power dynamics at play within Tesla's shareholder base. His potential loss of control could significantly impact the company's strategic direction, given his instrumental role in shaping Tesla's innovative trajectory. The upcoming shareholders' meeting will be a critical event, potentially determining the future of Musk's leadership at Tesla. Read Next Elon Musk Commits To Intense Focus on X/xAI and Tesla: 'Back To Spending 24/7 at Work, Sleeping in Conference/Server/Factory Rooms' Image: Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? TESLA (TSLA): Free Stock Analysis Report This article Elon Musk Warns of Losing Tesla Control, Denies Personal Loans Tied To Shares originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Los Angeles Times
2 days ago
- Los Angeles Times
Tesla must pay $243 Million over fatal autopilot crash
Tesla Inc. was told to pay $243 million in a lawsuit over a 2019 Autopilot crash in Florida that killed a young woman and seriously injured her boyfriend, the first significant court loss for the automaker in litigation related to its driver-assistance technology. A jury in Miami federal court found Friday that Tesla was 33% to blame for the collision. A Tesla Model S ran a stop sign at a T intersection in the Florida Keys and rammed into the couple's parked Chevrolet Tahoe while they were standing next to it. Jurors issued their verdict after less than a day of deliberations following a three-week trial. The jury determined that the Tesla S driver was primarily responsible for the crash and that Tesla should pay $42.5 million to compensate the victims for their losses. The panel also ordered Tesla to pay $200 million in punitive damages, but the company said it expects that figure to be reduced by the court. Tesla had argued the driver was entirely at fault because he was distracted when he dropped his mobile phone on the floorboard. '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,' Tesla said in a statement. 'We plan to appeal given the substantial errors of law and irregularities at trial.' The Miami suit is one of a handful of crash cases that have gone to trial and the verdict tarnishes Tesla's near-perfect record in court. The electric-vehicle maker prevailed in two previous trials in California over Autopilot-related crashes and has struck confidential accords to resolve several cases that blamed defective technology for deadly accidents. The verdict comes as Tesla Chief Executive Officer Elon Musk faces enormous investor pressure after the company's stock has been battered, first by his close affiliation with President Donald Trump, and then by his dramatic falling out with the president. Musk has staked Tesla's future in part on autonomous driving as the company is launching a robotaxi business. But when Tesla recently announced disappointing second-quarter earnings, Musk warned that the company is in for a few 'rough quarters' as incentives like the EV tax credit go away in the US. At trial, the jury heard testimony from the driver of the Model S, family members of the woman who died, company engineers and various outside experts who discussed whether Autopilot played a role in the collision. George McGee, the driver of the Model S, had engaged his vehicle's driver-assistance system while traveling home from work. In the moments before the collision, data obtained from the vehicle showed that he had pressed the accelerator to 17 miles (27.4 kilometers) per hour over the posted speed limit, leading him to override the vehicle's adaptive cruise control before he went off the road. McGee testified that he had been on hold on with American Airlines trying to modify an upcoming flight. He said his phone fell and he was looking for it just before the crash. As his car left the road, McGee said he felt the texture of the road change under his tires and he remembered 'jamming on the brakes.' During questioning, he told jurors that he knew he was completely responsible for operating the car, but that he expected Autopilot to assist him in the event he made a mistake. 'In that case, I do feel like it failed me,' he said, according to a transcript of his testimony. The family of Naibel Benavides Leon, the woman who was killed, reached a confidential settlement with McGee in 2021 in a separate lawsuit. Lawyers for the estate of Benavides Leon and her boyfriend, Dillon Angulo, argued Tesla's Autopilot encourages complacency and that the company and Musk have overstated the system's capabilities, leading drivers to be overconfident in its abilities. They also alleged that Tesla failed to add safeguards to ensure the software was only available on roadways where it was designed to be used and features to monitor the attentiveness of drivers. 'Today's verdict represents justice for Naibel's tragic death and Dillon's lifelong injuries, holding Tesla and Musk accountable for propping up the company's trillion-dollar valuation with self-driving hype at the expense of human lives,' Brett Schreiber, lead attorney for the crash victims, said in a statement. Tesla, as it has in other cases, blamed driver error for the collision. Lawyers for the company argued repeatedly that McGee was an aggressive driver with a history of speeding, and that he took his eyes off the road and his hands off the wheel despite warnings in the owners' manual that drivers must stay engaged. The company has maintained there were no defects in its software and that Autopilot operated exactly as designed. Throughout the trial, Tesla defense attorney Joel Smith said no driver-assistance technology on the market in 2019 would have been able to prevent the crash. The automotive industry categorizes automation systems in vehicles from Level 0 to 5, based on what features are available. Level 0 features simply pass on information to the driver, like sounding a warning when you're driving out of a traffic lane. Tesla's Autopilot is classified as Level 2 because it requires constant driver input and supervision. Mekelburg writes for Bloomberg.
