Auto maker Tesla rejected a $60 million settlement offer prior to incurring a $243 million penalty for an Autopilot-involved wreck.

Tesla Faces $243 Million Penalty in First Autopilot Wrongful Death Trial

Tesla is facing a significant setback after a jury in Florida ruled in favour of the plaintiffs in a high-profile lawsuit over a fatal 2019 crash involving the company's Autopilot system. The verdict, which was announced on Thursday, marks the first time Tesla has faced a jury over the wrongful death of a third party linked to Autopilot.

The lawsuit, filed in Florida, concerns a crash that resulted in the death of 22-year-old Naibel Benavides Leon and the serious injury of her boyfriend, Dillon Angulo. The incident occurred when a Model S on Autopilot struck Leon and Angulo, who were standing next to their parked Chevrolet Tahoe on a shoulder.

The jury found Tesla partially liable in the Key Largo crash, awarding $129 million in compensatory damages and an additional $200 million in punitive damages. Tesla is responsible for all of the punitive damages and $42.6 million of the compensatory damages.

While Tesla faces growing scrutiny over its driver-assistance software, recent data suggests Tesla's Full Self-Driving (FSD) system is now 26 times safer than the average U.S. driver. However, the jury's ruling underscores the risks Tesla faces as Autopilot and FSD remain under the legal and regulatory spotlight.

The driver, George McGee, was found 67% responsible for the compensatory damages, but he was not a defendant in the case. Interestingly, Tesla reportedly turned down a $60 million settlement proposal before the case went to trial. The plaintiffs in the case were represented by negotiators who initially offered a $60 million settlement, but the specific names of the lead negotiators or their representatives are not mentioned in the available information.

Lawyers for the plaintiffs disclosed the settlement offer in a court filing this week as part of a request for legal fees. The settlement offer was made on May 30, just weeks before the case went to trial.

Tesla has denied wrongdoing and vowed to appeal the verdict. The company has maintained that the crash was caused by McGee looking away to retrieve his phone.

This trial marks a significant milestone in the ongoing debate about the safety and reliability of autonomous driving technology. As Tesla and other companies continue to develop and refine their self-driving systems, it is crucial that they prioritise safety and transparency to build public trust and avoid similar tragedies in the future.

Auto maker Tesla rejected a $60 million settlement offer prior to incurring a $243 million penalty for an Autopilot-involved wreck.