Tesla hit with $329 million verdict over deadly autopilot crash, opening floodgates for lawsuits

Adding to the drama, the victim’s lawyers accused Tesla of hiding or losing key evidence, including video and data captured just seconds before the crash.

In a rare courtroom defeat for Elon Musk’s Tesla, a federal jury in Miami has ordered the EV maker to pay $329 million in damages to the victims of a fatal 2019 crash involving its Autopilot feature. The verdict, one of the largest against the company, could mark a turning point in how courts view Tesla's responsibility in driver-assistance crashes.

The ruling stems from a tragic late-night accident on a dark road in Key Largo, Florida, where 22-year-old Naibel Benavides Leon was killed and her boyfriend, Dillon Angulo, was seriously injured after a Tesla Model 3 slammed into them while they were stargazing on the roadside.

While the Tesla driver admitted to being distracted by his cellphone, the jury concluded that Tesla’s Autopilot technology also failed, and that the company could not wash its hands of responsibility.

This nuanced ruling, recognising both human error and tech malfunction, is significant. It signals that driver-assist systems, especially those branded as “Autopilot,” come with legal and moral accountability.

Until now, Tesla has either settled similar lawsuits out of court or gotten them dismissed before trial. That strategy kept damning evidence, and headlines, at bay. But this case broke that pattern.

“This will open the floodgates,” said Miguel Custodio, a Los Angeles car crash attorney not involved in the case. “It will embolden a lot of people to come to court.”

Adding to the drama, the victim’s lawyers accused Tesla of hiding or losing key evidence, including video and data captured just seconds before the crash.

Tesla repeatedly told the court the footage didn’t exist. But a forensic expert hired by the plaintiffs eventually unearthed the exact data Tesla claimed was missing, proving the company had it all along. Tesla responded that it had made an honest mistake.

The verdict couldn’t come at a worse time for Elon Musk. As he prepares to launch Tesla’s driverless taxi service in select cities later this year, trust in the company’s safety claims is more important than ever.

Although Tesla has significantly upgraded its Autopilot system since the 2019 crash, this high-profile courtroom loss brings renewed attention to concerns about the company’s transparency, data practices, and the real-world reliability of its software.

The Miami case could trigger a domino effect, with more victims and families stepping forward to sue Tesla. The precedent set here, that Tesla’s technology, not just its drivers, can be held liable, may have broad implications for how future cases are handled.

Meanwhile, the Federal government and safety regulators could face new pressure to re-evaluate the oversight of driver-assist technologies, especially as more companies race to develop autonomous vehicles.

(With inputs from AP)