
Looming over two cases threatening Musk's car company is a single question: Can he be trusted?
In Miami, a Tesla driver who has admitted he was wrong to reach for a dropped cell phone moments before a deadly accident, spoke of the danger of putting too much faith in Musk's technology — in this case his Autopilot program.
'I trusted the technology too much,' said George McGee, who ran off the road and killed a woman out stargazing with her boyfriend. 'I believed that if the car saw something in front of it, it would provide a warning and apply the brakes.'
In unusual coincidence, regulators arguing an Oakland, California, case tried to pin exaggerated talk about the same Tesla technology at the center of a request to suspend the carmaker from being able to sell vehicles in the state.
Musk's tendency to talk big — whether it's his cars, his rockets or his government costing-cutting efforts — have landed him in trouble with investors, regulators and courts before, but rarely at such a delicate moment.
After his social media spat with President Donald Trump, Musk can no longer count on a light regulatory touch from Washington. Meanwhile, sales of his electric cars have plunged and so a hit to his safety reputation could threaten his next big project: rolling out driverless robotaxis — hundreds of thousands of them — in several U.S. cities by the end of next year.
The Miami case holds other dangers, too. Lawyers for the family of the dead woman, Naibel Benavides Leon, recently convinced the judge overseeing the jury trial to allow them to argue for punitive damages. A car crash lawyer not involved in the case, but closely following it, said that could cost Tesla tens of millions of dollars, or possibly more.
'I've seen punitive damages go to the hundreds of millions, so that is the floor,' said Miguel Custodio of Los Angeles-based Custodio & Dubey. 'It is also a signal to other plaintiffs that they can also ask for punitive damages, and then the payments could start compounding.'
That Tesla has allowed the Miami case to proceed to trial is surprising. It has settled at least four deadly accidents involving Autopilot, including payments just last week to a Florida family of a Tesla driver. That said, Tesla was victorious in two other jury cases, both in California, that also sought to lay blame on its technology for crashes.
Lawyers for the plaintiffs in the Miami case argue that Tesla's driver-assistance feature, called Autopilot, should have warned the driver and braked when his Model S sedan blew through flashing lights, a stop sign and a T-intersection at 62 miles-an-hour in an April 2019 crash. Tesla said that drivers are warned not to rely on Autopilot, or its more advanced Full Self-Driving system. It says the fault entirely lies with the 'distracted driver' just like so many other 'accidents since cellphones were invented.'
Driver McGee settled a separate suit brought by the family of Benavides and her severely injured boyfriend, Dillon Angulo.
McGee was clearly shaken when shown a dashcam video Monday of his car jumping a Key West, Florida, road and hitting a parked Chevrolet Tahoe which then slammed into Benavides and sent her 75 feet through the air to her death. Asked if he had seen those images before, McGee pinched his lips, shook his head, then squeaked out a response, 'No.'
Tesla's attorney sought to show that McGee was fully to blame, asking if he had ever contacted Tesla for additional instructions about how Autopilot or any other safety features worked. McGee said he had not, though he was heavy user of the features. He said he had driven the same road home from work 30 or 40 times. Under questioning, he also acknowledged he alone was responsible for watching the road and hitting the brakes.
Summarizing the testimony, Tesla said in a statement after the court adjourned that McGee had 'stated the simple truth that we all know: If he had just paid attention to the road instead of searching for his dropped cell phone and pressing the accelerator —which he was doing for over a minute before the crash — this tragic accident would never have happened.'
But lawyers for the Benavides family had a chance in the courtroom at parrying that line of argument, asking McGee if he would have taken his eyes off the road and reached for his phone had he been driving any car other than a Tesla on Autopilot.
McGee responded, 'I don't believe so.'
The case is expected to continue for two more weeks.
In the California case, the state's Department of Motor Vehicles is arguing before an administrative judge that Tesla has misled drivers by exaggerating the capabilities of its Autopilot and Full Self-Driving features. A court filing claims even those feature names are misleading because they offer just partial self-driving
Musk has been warned by federal regulators to stop making public comments suggesting Full Self-Driving allows his cars to drive themselves because it could lead to overreliance on the system, resulting in possible crashes and deaths. He also has run into trouble with regulators for Autopilot. In 2023, the company had to recall 2.3 million vehicles for problems with the technology and is now under investigation for saying it fixed the issue though it's unclear it has, according to regulatory documents.
The California case is expected to last another four days.
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CNN
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- CNN
Get ready for more bad news from Tesla
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Miami Herald
a few seconds ago
- Miami Herald
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Miami Herald
a few seconds ago
- Miami Herald
See the 22 rules and customer rights the state says a Broward mover violated
Movers can't demand cash-only payments. They can't hold your children's possessions hostage for payment. They can't dump your furniture in front of your new home. Those are some rights of Florida moving customers. Florida movers have responsibilities. Keep reading to see the 22 ways a state investigation says those rights and responsibilities were ignored by Fort Lauderdale-based Shawn Thompson and his companies. The 69-page administrative complaint by the Florida Department of Agriculture and Consumer Services says the agency intends to impose a fine up to $5,000 for each violation. A year ago, the agency denied Thompson's companies license renewal for moves within the state. Officially, these violations are not those of Shawn Thompson, but of Thompson Nation Holdings, which does business as the other 24 moving companies listed on the complaint. State records list Thompson as the registered agent and the only authorized person for Thompson Nation Holdings. MORE: Investigation of a Broward mover found fraud, extortion and forgery, state says Some of the first violations listed in the complaint can be considered lazy, sloppy paperwork. The complaint builds to a final count that states Thompson 'committed other acts of fraud, misrepresentation or failure to disclose a material fact.' After Thompson and his attorney received the administrative complaint on June 13 by certified mail, Thompson had 21 days to file an Election of Rights to request an informal hearing or a formal hearing before an administrative law judge. Requesting a formal hearing requires filing a disputing of material facts alleged in the complaint. Not filing the Election of Rights on time is a waiver of hearing rights and, according to the Agriculture Department, 'may result in the issuance of a Final Order without any further notice that may impose up to the maximum penalties...' READ MORE: Three South Florida movers will pay $3.8M for a 'moving brokerage scheme,' state says Thompson repeatedly has requested the Miami Herald not to call, text or email him for response on stories about his moving companies. All quotes come from the administrative complaint. Count 1 The law: 'A certificate evidencing proof of registration shall be issued by the department and must be prominently displayed in the mover's or broker's primary place of business.' The accusation: The complaint said Thompson picked 3001 SW 10th St. in Pompano Beach as the primary place of business., but that office park location 'is not open to the public, and nowhere in this office space is the departmental registration certificate posted as required.' Count 2 The law: Each estimate or contract of a mover must include the phrase '(Moving company name) is registered with the State of Florida as a Mover. Fla. Mover Registration No....' The accusation: The contracts of Thompson companies with at least 14 customers interviewed in the investigation didn't have that language. Count 3 The law: Any document from a moving broker most include the phrase '(Broker company name) is registered with the State of Florida as a Moving Broker. Fla. Moving Broker Registration No....' The accusation: If Thompson claims he or Thompson Nation Holdings is a moving broker, the documents given to at least 14 customers interviewed in the investigation didn't have that language. Count 4 The law: A mover or moving broker's registration isn't valid if the mover or broker is doing business any place other than the address on the application, unless the department is first notified in writing before any location change. 'A registration issued under this chapter is not assignable and the mover or moving broker may not conduct business under more than one name, except as registered.' The accusation: Thompson Nations Holdings 'was no longer located at the business address of record.' The company told the FDACS about 'multiple new business locations' that went unreported until the investigation. Also, the Vero Beach addresses at 601 21st St., Suites 335, 336 and 337 were virtual offices. Count 5 The law: 'Each mover and moving broker shall provide evidence of the current and valid insurance or alternative coverages required' under Florida statutory law. The accusation: Thompson Nations Holdings' liability insurance expired on June 21, 2023, but the companies still operated without insurance and without telling the state they were sans liability insurance until Aug. 17, 2023. Count 6 The law: Each mover must maintain motor vehicle coverage, including combined bodily injury and property damage liability coverage. The amount depends on the size of the truck: $50,000 per occurrence for a commercial vehicle under 35,000 pounds, $100,000 per occurrence for a commercial vehicle between 35,000 and 44,000 pounds and $300,000 or a commercial vehicle at or over 44,000 pounds. The accusation: Thompson Nations Holdings' four commercial vehicles were insured for a combined $40,000. Count 7 The law: Before starting a move, 'an estimate and a contract must be prepared by a registered mover and provided to a prospective (customer) in writing and the (customer), the mover, and, if applicable, the moving broker must sign or electronically acknowledge and date the estimate and contract.' The accusation: At least 14 of the contracts with customers who investigators interviewed weren't properly signed or electronically acknowledged by the customer, the mover or, when there was one, the moving broker. Count 8 The law: See Count 7, particularly the part about 'registered mover.' The accusation: Fresh Start Moving & Storage was a registered 'doing business as' (dba) of Thompson Nations Holdings from Aug. 18, 2022, through April 3, 2024. It wasn't registered as a dba when it gave estimates to five of the customers who spoke to investigators. Count 9 The law: See Count 7, particularly the part about 'registered mover.' The accusation: Next Door Relocation was a registered 'doing business as' of Thompson Nations Holdings starting April 30, 2024. It wasn't registered as a dba when it gave estimates to two of the customers who spoke to investigators. Count 10 The law: See Count 7, particularly the part about 'registered mover.' The accusation: Small Move Movers became a registered 'doing business as' of Thompson Nations Holdings starting Aug. 18, 2022. It wasn't registered as a dba in July 2022 when it gave estimate and a contract for services to Nicolette Gonzalez and moved her to Gainesville. Gonzalez later sued Thompson in Miami-Dade Civil Court over the move, gaining a judgment and an injunction. Thompson's appealed both. Count 11 The law: Before moving a customer, a contract and estimate 'must be provided to a prospective customer in writing, must be signed and stated by the shipper (customer) and the mover.' It also must have 'an itemized breakdown, description and total of all costs and services for loading, transportation or shipment, unloading and accessorial services to be provided during a household move or storage of household goods.' The accusation: The 14 estimates and contracts reviewed by investigators weren't signed and dated by the customer and the mover; and, didn't have any of the above information required. Count 12 The law: Payment forms accepted must be 'clearly and conspicuously disclosed' to the customer on the binding estimate and contract. Also, the mover must accept payment two of these three categories: valid credit card, not limited to but including Visa or MasterCard; valid personal check with the name and address of the customer or authorized representative; cash/cashier's check/money order/traveler's check. The accusation: Thompson companies accepted only 'cash, cash equivalents or certified funds' for the final balance before unloading from at least 13 customers. Thompson companies' contracts contained 'cash only' or similar language. Or, Thompson employees demanded payment in cash or cash equivalents. Count 13 The law: A mover has to deliver households goods to a customer, putting them inside a customer's home or inside a customer's storehouse or warehouse unless the customer hasn't paid the amount specified in a written contact or estimate the customer signed and dated. 'A mover may not refuse to relinquish prescription medicines and goods for use by children ... under any circumstances.' The accusation: Thompson movers put one customer's items 'near the garage;' refused to unload children's belongings for another customer, causing the couple to buy replacements; refused to unload in the agreed upon location, claiming it didn't have tractor-trailer access when the moving truck didn't need it; left some of a customer's goods on the grass, didn't put all the furniture in the house and 'threw broken pieces of a computer desk in the neighbor's yard.' Count 14 The law: A mover can't refuse to to deliver household goods to a customer's home or other place the customer owns or rents 'based on the mover's refusal to accept an acceptable form of payment.' The accusation: Next Door Relocation movers demanded $5,167 in cash or certified funds only and charged the customer fees until he could get cash or certified funds (see Count 12). Fresh Start Moving and Storage movers 'made a call to their boss, Shawn (Thompson), who demanded (the customer) pay an additional $2,100 in cash). The movers said they would not unload unless (the customer) paid them. Shawn (Thompson) was very rude and unprofessional and told [the customer] to go to an ATM and get the balance owed.' Count 15 The law: A mover can't 'misrepresent or deceptively represent the timeframe or schedule for delivery or storage of household goods estimated.' The accusation: Thompson movers didn't 'uphold' the timeframe and schedule for delivery for three customers, delivery for at least one customer and didn't show up at all (but kept the deposit) for another customer. Count 16 The law: A mover can't 'misrepresent or deceptively represent the contract for services, bill of lading or inventory of household goods for the move estimated.' The accusation: With 18 customers, Thompson companies' movers failed this requirement with 'low estimates leaving off fees and adding discounts it would not keep; demanding more cash without valid supporting documentation; refusing to abide with the estimate/contract language; refusing to deliver or unload belongings unless they paid (Thompson companies) additional monetary demands; intentionally damaging the (customer's) belongings; and not providing a bill of lading/inventory or a legible one.' Count 17 The law: A mover can't 'misrepresent or deceptively represent the price, size, mature, extent, qualities or characteristics of accessorial or moving services offered and 'the nature or extent of other goods, services or amenities offered.' The accusation: The complaint lists 16 instances of Thompson companies violating the above. Thompson movers 'misrepresented' the estimate to 17 customers, usually producing invoices that bore little relation to the estimate once the goods were on the truck. Also, there was no bill of lading that supported the invoices. Among the examples given: one customer who got a $1,266 estimate paid a total of $3,107 and still had to wait 10 days for her possessions. Todays Move Movers charged one customer $2,505 'for packing materials when her belongings already were packed...' Count 18 The law: A mover can't 'misrepresent or deceptively represent a (customer's) rights, privileges or benefits. The accusation: The complaint says Thompson companies did this with 18 customers by, among other things, 'including misleading language' in estimates; 'demanding additional cash payments without written supporting documentation;' claiming the moving company 'has a valid insurance/compensation program for shippers whose property' gets lost or damaged; and 'refusing to communicate with shippers' after their possessions were on moving trucks or when they tried to file a claim for damages after the move. Count 19 The law: A mover can't fail to honor all contract provisions or bill of lading 'regarding the purchaser's rights, benefits and privileges.' The accusation: Thompson companies didn't put all relevant costs and fees in the estimates; jacking up the cost from the estimates 'without providing supporting documentation;' charging for unnecessary or unmoved moving supplies; accepting credit cards for deposits but then demanding cash or certified payments only; telling customers they could be compensated for lost or damaged goods, but Thompson companies 'did not follow through.' Count 20 The law: A mover can't 'withhold delivery of household goods or, in any way, hold goods in storage against the expressed wishes of the customer' if payment has been made as described in the estimate or contract. The accusation: Thompson companies or movers did exactly that with 17 customers. They refused to unload trucks without payments above the agreed upon estimate, sometimes throwing in 'threats and/or intimidation for additional funds,' increasing the amount and 'refusing payment of the estimated amounts.' Count 21 The law: No contract provision can waive or limit any customer's right or benefit or ask for a such a waiver or limitation. The accusation: Thompson moving contracts with two customers waived customer rights and benefits in the COVID-19 section. In 17 contracts, language 'affected the customer's right for an accurate or binding estimate. Also, requiring customers to pay on the delivery end in cash violated this rule. Count 22 The law: A mover can't 'commit any other act of fraud, misrepresentation or failure to disclose a material fact.' The accusation: This is the complaint's grand finale, a listing of 20 separate violations of this move over three pages. Some of them are: ▪ Todays Move Movers, Fresh Start Moving and Storage and Stellar Relocation not telling customers they weren't authorized to be hired for interstate moves. ▪ Fresh Start charged a customer for three movers when only two showed up. ▪ Thompson companies 'claimed to have licensed and insured quality trained workers.' But those workers 'threatened, harassed, intimidated, strong armed and/or physically assaulted' 17 customers and broke, damaged or lost their goods. ▪ An estimate of $625 for a 10-mile move by Todays Move turned into a $6,182 charge, including the $2,505 for packing materials for belongings already packed by the customer. ▪ Thompson 'forged (a customer's) signature on a portion of the contract/bill of labor where the consumer signs stating there were no damaged items after the move. (The customer) suffered damage to multiple items.'