September 17, 2026

Tesla Settles Lawsuit Over Fatal 2023 Crash Involving Full Self-Driving

fsd

Tesla has reached a settlement in a lawsuit stemming from the first known pedestrian fatality involving one of its vehicles operating with Full Self-Driving (FSD) engaged, bringing an end to a case that has lasted nearly three years.

The lawsuit was filed following the tragic death of 71-year-old Johna Story, who was struck and killed in November 2023 on an Arizona highway while attempting to help direct traffic around vehicles involved in earlier crashes caused by severe sun glare conditions.

According to court filings, Story had exited her vehicle to assist other drivers when she was hit by a Tesla Model Y travelling at highway speeds with Tesla’s FSD system active. The crash triggered investigations by both the National Highway Traffic Safety Administration (NHTSA) and federal safety regulators into the performance of Tesla’s driver-assistance technology in reduced visibility conditions, particularly sun glare.

The legal action, filed by Story’s daughter against both Tesla and the driver of the Model Y, was resolved before reaching trial. Attorney Dustin Birch, representing the family, confirmed the settlement but declined to disclose financial terms. (via Bloomberg)

Tesla has not publicly commented on the settlement.

The Arizona collision became a significant case as it was the first publicly known pedestrian fatality involving a Tesla vehicle operating with FSD engaged. The incident also contributed to a broader NHTSA defect investigation into how Tesla vehicles respond when camera visibility is compromised.

Federal investigators previously identified several crashes in which Tesla’s systems allegedly failed to properly recognize conditions such as intense sunlight, fog, dust, and other environmental factors that could limit camera performance. Regulators found instances where the vehicle did not sufficiently recognize degraded visibility or alert the driver to the issue before a collision occurred.

Tesla said earlier this year that it had introduced updated camera hardware and other improvements designed to address some of those limitations and stated it continues to cooperate with regulators reviewing the technology.

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