A jury has found Tesla $TSLA ( ▼ 0.25% ) partially liable for a fatal 2019 crash in Florida involving its Autopilot technology—requiring the company to pay a portion of the $329 million in damages awarded in the suit.
The details: The jury determined that Tesla was 33% responsible for the fatal crash and will have to pay $42.5 million in compensatory damages awarded to the family of the deceased and a person injured in the crash.
Tesla’s $42.5 million payout is based on $129 million in compensatory damages and $200 in punitive damages against the company.
The plaintiffs’ attorneys expect the automaker to pay the entire $200 million in punitive damages because punitive damages were only assessed against Tesla.
The total in compensatory and punitive damages would bring the automaker’s payout to around $242.5 million.
The suit is centered on Tesla owner George McGee, who was driving his Model S in Key Largo, Florida, while using the electric vehicle’s Enhanced Autopilot, when the car accelerated through an intersection–hitting a parked car, killing 22-year-old Naibel Benavides and severely injuring her boyfriend, Dillon Angulo.
Why it matters: The Miami jury’s decision regarding the fatal accident shifts the narrative on safety concerns with the company’s autonomous driving system, which has been at the center of several National Highway Traffic System (NHTSA) probes.
Between the lines: The verdict holding Tesla partly responsible for the death of Benavides (which the automaker said it plans to appeal) comes as the company looks to position itself as a leader in the autonomous vehicle market.
Autonomous vehicles, specifically robotaxis, are central to Tesla’s business operations and its market valuation.
Tesla made its official entry into the robotaxi market in Austin, Texas, in June—nearly doubling its geofencing since then, growing it to about 80 miles.
Bottom line: The jury verdict against Tesla for the 2019 Autopilot-related fatal crash raises material concerns about Tesla’s autonomous driving technology. While the payout itself is manageable for Tesla’s balance sheet, the precedent of a jury assigning partial liability to Tesla could have broader safety and regulatory implications as the company looks to expand its robotaxi service.
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