Electric vehicle manufacturer Tesla was ordered to pay $243 million after a jury in Miami deemed the automaker partly responsible for a fatal crash in 2019.
However, Tesla passed up an opportunity to settle the case for $60 million, according to new documents obtained by Reuters.
What's happening?
Tesla describes Autopilot — an advanced driver assistance system, or ADAS — as a feature that "reduces your overall workload as a driver," enabling motorists to "see a direct impact in reducing traffic collisions."
In April 2019, a Tesla Model S with its Autopilot feature engaged struck a parked SUV while traveling over 60 miles per hour. The SUV's passengers, Dillon Angulo and Naibel Benavides Leon, had exited their vehicle shortly before the collision.
Angulo was "seriously injured" in the crash, and Benavides was killed.
Tesla maintained that the incident was the result of a distracted driver, not flaws in its Autopilot system.
Reuters obtained a document filed on Monday, August 25, after the plaintiffs' attorneys sought compensation from Tesla for legal fees.
The document indicated that the plaintiffs offered Tesla the opportunity to settle the claim for $60 million — $30 million of which would go to Angulo and the balance to Benevides' estate — on May 25, 2025.
According to the newly obtained filing, Tesla didn't acknowledge the settlement offer within 30 days, forcing the plaintiffs' lawyers to take their chances at trial.
Litigation commenced on July 14, and the jury ultimately awarded the plaintiffs nearly $243 million in damages.
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Per Reuters, the sum included $200 million in punitive damages and $42.6 million in compensatory damages, after the jurors deemed Tesla "liable for 33%" of the latter.
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I'd be excited 😀 Why is this verdict important?
Tesla asserted that the decision "only works to set back automotive safety and jeopardize [automakers'] efforts to develop and implement life-saving technology."
When it comes to electric cars, the Tesla brand long occupied a rare space, experiencing what appeared to be exponential growth and attracting a loyal consumer base.
Tesla seemed unstoppable until 2025, when a number of setbacks occurred. Tesla CEO Elon Musk's controversial involvement in American politics led to boycotts, the brand's consistently impressive sales numbers began slipping, and a parade of affordable competitors emerged.
Association with the once-aspirational Tesla brand became an occasional social liability, which was unfortunate on several counts.
Current Tesla owners were put in a difficult position, and that volatile brand perception could dissuade drivers from making their next car an EV.
What's being done about it?
Reuters noted that while similar cases against Tesla had been filed, the plaintiffs' attorneys maintained the verdict was the first of its kind.
An attorney whose practice area centers on cars predicted the decision would "open the floodgates" and "embolden" future claims.
"We plan to appeal given the substantial errors of law and irregularities at trial," Tesla said in a statement about the verdict.
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