The verdict marks a rare courtroom loss for Tesla, which has typically avoided such trials by settling cases or securing dismissals.
A federal jury in Miami has found Tesla partly responsible for a fatal 2019 crash in Florida involving its Autopilot driver-assist technology and has ordered the company to pay $243 million in damages.
The case, centred on a crash that killed 22-year-old Naibel Benavides Leon and seriously injured her boyfriend Dillon Angulo, ended after a four-year legal battle.
The jury concluded that Tesla’s technology failed to prevent the accident, despite the driver, George McGee, admitting he was distracted by his cellphone moments before slamming into the couple’s parked car. This verdict marks a rare courtroom loss for Tesla, which has typically avoided such trials by settling cases or securing dismissals.
Legal experts say the outcome could signal a wave of similar lawsuits. Attorney Miguel Custodio, not involved in the case, described the ruling as a potential game-changer, suggesting it may encourage more victims to take Tesla to court. Central to the plaintiffs’ argument was the allegation that Tesla had either hidden or overlooked key evidence, including video and data recorded just before the crash. The plaintiffs’ legal team, led by Brett Schreiber, hired a forensic expert who recovered the data Tesla previously claimed it couldn’t find. Tesla admitted it had made an error but denied wrongdoing, arguing that McGee’s distracted and reckless driving caused the crash.
Tesla has responded strongly to the verdict, calling it incorrect and warning that it may harm the development of life-saving automotive technology. The company insists that McGee alone was to blame, noting he had driven through the same intersection dozens of times before without incident. Nevertheless, the jury awarded $43 million in compensatory damages and $200 million in punitive damages, holding Tesla responsible for a significant share. Tesla has vowed to appeal, claiming that a pre-trial agreement limits its financial liability to around $172 million, though the plaintiffs dispute that interpretation.
The crash occurred on a dark, rural road in Key Largo, Florida. McGee, distracted by his phone, failed to stop at a flashing red light and a stop sign, ploughing into the couple’s parked Chevrolet Tahoe at 62 miles per hour. The impact launched Benavides 75 feet into the woods, where her body was later found. Angulo suffered a traumatic brain injury and multiple broken bones. In court, McGee said he had placed too much trust in the Autopilot system, believing it would detect obstacles and brake automatically. Schreiber argued that Tesla’s use of the term “Autopilot” misled users into overestimating the system’s capabilities, noting that other carmakers use more cautious language like “driver assist.”
The case has attracted close attention from the auto industry. The verdict raises complex questions about liability as manufacturers move toward more autonomous vehicles. If companies can be held responsible even when drivers admit fault, legal exposure may grow. For Tesla, which plans to launch a driverless taxi service in multiple cities, the case underscores the ongoing tension between innovation and accountability.
