Tesla Motors (TSLA.US) rejected a $60 million settlement offer in a lawsuit stemming from a fatal 2019 crash, only to face a much larger $243 million jury verdict following trial proceedings in Miami.
The case centers on an April 2019 accident in Florida where a Tesla Model S operating on autopilot struck an individual standing beside a parked Chevrolet Tahoe. Details of the rejected settlement were revealed this week in court filings where plaintiff attorneys sought legal fees from Tesla Motors.
Plaintiffs alleged that Tesla Motors' autopilot system failed to perform adequately and that the company overstated the system's capabilities, leading to driver misuse and inadequate supervision. The Miami jury determined that Tesla Motors bears responsibility for 33% of the $129 million in compensatory damages (approximately $42.6 million) plus the full $200 million in punitive damages, bringing the total award to $243 million.
While the jury assigned 67% of compensatory damage responsibility to the driver, that individual was not named as a defendant in the case.
Tesla Motors has denied any wrongdoing and stated that the verdict "will only impede automotive safety progress and endanger efforts by Tesla Motors and the entire industry to develop and implement life-saving technologies."
The company's decision to reject the $60 million settlement significantly increased its legal exposure while highlighting broader industry and regulatory risks facing autonomous driving technology.