Elon Musk's Tesla lose $243 million in deadly crash case as they vow to appeal
A landmark trial verdict has seen Elon Musk's Tesla landed with a $243,000,000 potential loss, as the company rejected a smaller settlement in the case that centers around a fatal crash.
While some reports indicate that self-driving technology in cars is almost always safer than its human-operated counterparts, there are consistent concerns surrounding the viability of automated vehicles on the road.
Some Tesla drivers have previously pointed out how much more unsafe they now feel when in full control of their cars, yet it was the Autopilot technology equipped in a Model S that allegedly caused a crash in 2019, killing one person and leaving another seriously injured.
That horrific incident has now led to a case that is considered the first of its kind, as the plaintiffs emerged victorious with a victory worth around $243 million to Tesla's detriment.
What was the cause of the lawsuit?
As reported by the New York Post, the Benavides v. Tesla, Inc case focuses on an incident in 2019 where Naibel Benavides Leon was killed by an Autopilot-operated Tesla Model S, leaving her boyfriend Dillon Angulo seriously injured in addition.
Advert
It was revealed that the Model S vehicle struck the victims' parked Chevrolet Tahoe as they were standing behind it on a shoulder, with Autopilot technology alleged to be the reason why the accident occured.
Tesla has denied any wrongdoing in the case and vow to appeal the verdict that will see them pay significant fees to the plaintiffs in damages, with the electric vehicle company arguing that the case "only works to set back automotive safety and jeopardize Tesla's and the entire industry's efforts to develop and implement life-saving technology."
This is far from the first time that Tesla has faced criticism over its Full Self-Driving (FSD) technology, as previous incidents have seen cars drive off the top of a roof amid a malfunction, and the company has also faced similar lawsuits in the past, but this is the first time that a trial has been reached for the wrongful death of a third party as a result of Autopilot software.
How much will Tesla have to pay?
The conclusion of the lawsuit saw a combined $129 million in compensatory damages and $200 million in punitive damages issued to Dillon Angulo and the estate of Benavides, although Tesla is only liable for 33% of the $129 million figure, equating to $242.6 million in total.
The remaining 67% of the compensatory damages were deemed to be liable for the driver of the car, although he was not a defendant in this case.
Tesla will aim to either reduce or completely remove this verdict upon appeal, but a decision to reject a previous settlement for $60 million has seemingly cost Musk's company around $182 million.
This verdict has now seen both plaintiffs recover more than 125% of the amount that was proposed for settlement, and as part of the money is used to recover the cost of attorneys' fees from the case.