Court orders Tesla to pay $243m for fatal crash involving autopilot

By: Russell Thompson | 03.08.2025, 15:56
Tesla Defeated in Recent Court Judgement Full-Self Driving is not a guarantee of safety. Source: Tesla

For the first time in a long time, Tesla has lost a high-profile case involving autopilot. A federal jury in the state of Florida found the company partially responsible for a fatal accident that occurred in 2019 in the city of Key Largo.

At issue is the incident in which 22-year-old Naibel Benavides died after colliding with a Tesla Model S driven in Autopilot mode. The Tesla driver, George McGee, was distracted at the wheel while trying to pick up a fallen phone and crashed into the deceased woman's car. He said in court that he believed "Autopilot would protect him and prevent a serious accident even if he made a mistake."

Here's What We Know

The court ordered the company to pay $200 million in punitive damages and another $43 million in compensation to the victim's family, according to CBS News.

This is a rare case where Tesla has been found guilty in an accident involving Autopilot - despite dozens of similar cases documented by the US Highway Safety Administration (NHTSA). The company previously successfully won two similar cases in 2023, and another false advertising charge was dismissed in federal court.

Criticism of Tesla is mounting

The California Department of Motor Vehicles (DMV) has previously accused the company of knowingly misleading advertising of Autopilot and Full-Self Driving features. Despite claims that the features are not fully autonomous, Tesla's marketing gives drivers the opposite impression - and it could cost people their lives.

The company has already said it intends to appeal the verdict, saying the verdict is "wrong" and "threatens the entire industry" of developing life-saving technology in cars.

Against this backdrop, Tesla has already started testing robotaxis in Austin and the San Francisco area, which only adds fuel to the fire of debate surrounding the safety of its systems.

Source: CNBC