A federal jury in Miami has ruled that Tesla must pay $200 million in punitive damages following a fatal 2019 crash involving its Autopilot system. The company was also ordered to pay part of an additional $129 million for pain and suffering.
The case marks the first federal wrongful death lawsuit over Tesla’s driver-assistance software to go to trial — and could set a precedent for similar claims.
The tragic incident occurred on April 25, 2019, in Key Largo, Florida, when 22-year-old Naibel Benavides Leon was killed and her boyfriend, Dillon Angulo, severely injured after a Tesla Model S — driven by George McGee with Autopilot engaged — sped through a stop sign and struck them as they stood outside a parked SUV. McGee admitted to looking down to retrieve his dropped cellphone moments before the collision.
While Tesla maintained that McGee’s distracted driving was solely responsible, the jury, after less than a day of deliberations, determined that the company’s Autopilot technology played a significant role. Jurors found Tesla 33% liable and McGee 67% liable, awarding $129 million in compensatory damages to the plaintiffs and an additional $200 million in punitive damages aimed at Tesla. (via CNBC)
During the three-week trial, evidence showed that McGee’s Tesla had recognized the stopped SUV and at least one pedestrian before the crash — yet failed to respond appropriately.
Autopilot’s inability to override driver input when the accelerator is pressed played a central role in the plaintiffs’ argument.
Tesla defended its software, stating in a post-verdict statement that, “No car in 2019 — and none today — could have prevented this crash.” The company called the verdict “wrong” and warned it could “jeopardize Tesla’s and the industry’s efforts to develop life-saving technology.”
Tesla also confirmed after the verdict it will appeal the decision.
As Tesla seeks to expand its autonomous offerings and convince regulators and the public of the safety of its systems, this ruling could have lasting implications — both legally and reputationally. With several additional Autopilot-related lawsuits still pending, the floodgates may now be open.