What does Tesla verdict mean for future of autonomous vehicles?

Tesla was found liable for hundreds of millions of dollars in damages for a 2019 crash involving a vehicle equipped with the company’s Autopilot feature.

The sum itself is significant, but that is outweighed by the possible future implications. This case, seen as the first nuclear verdict against autonomous vehicle tech, could set legal precedents as manufacturers adopt more automation.

A jury in a Florida federal court found Tesla 33% responsible for $129 million in damages for a crash involving one of its vehicles. On top of damages for the two plaintiffs, Tesla also got hit with $200 million in punitive damages.

At the center of the case was Tesla’s Autopilot feature. The Level 2 autonomous system is a suite of features, including automatic steering, forward collision warning and automatic emergency braking.

On its website, Tesla states the Autopilot feature does not “make your Tesla vehicle fully autonomous or replace you as the driver.” Owners must agree to “keep your hands on the steering wheel at all times” and to always “maintain control and responsibility for your vehicle.”

Despite these disclaimers, Tesla drivers have used Autopilot beyond its capabilities, resulting in numerous crashes. In 2021, the National Highway Traffic Safety Administration launched an investigation into the autonomous system after identifying 11 crashes involving parked emergency vehicles.

A notable incident occurred in 2016 when a Model S crashed into a tractor-trailer, killing the driver. Following federal investigations and concerns from lawmakers, Tesla had avoided legal responsibility until now.

2019 crash in Florida

The case stems from a 2019 crash in Key Largo, Fla., that killed one person and left another seriously injured.

A Tesla going eastbound on Card Sound Road was approaching a three-way T-intersection with County Road 905. Card Sound Road ends at the intersection. Both a stop sign and a hanging traffic light sit at the intersection.

Despite sufficient signage, the driver of the Tesla drove through the intersection without stopping, crashing into a Chevrolet Tahoe legally parked on the east side shoulder of CR905, directly across from the end of Card Sound Road. Both occupants of the Tahoe were standing outside the vehicle. However, the impact left one dead and the other severely injured.

The lawsuit claims the Tesla did not detect the Tahoe or traffic signals while Autopilot was engaged. The Tesla was speeding at 70 mph in a 45 mph zone.

Plaintiffs in the case claim the Tesla driver took his eyes off the road to look at his phone as the vehicle was approaching the intersection. They argue he did that because he was relying on Autopilot.

They allege Tesla knew drivers would misuse Autopilot. The automaker failed to meet reasonable consumer expectations for lane keeping, speed matching, collision avoidance and emergency braking.

False advertising?

Although the Tesla driver’s inattentive driving contributed to the crash, attorneys for the plaintiffs argued that the automaker falsely marketed that its Autopilot feature was capable of doing far beyond what it could.

“For instance, just by terming the name of its product ‘Autopilot,’ Tesla created the false impression and understanding among consumers that its vehicles could drive automatically and autonomously, with reduced driver input or without any driver input,” the complaint states.

The lawsuit highlights a marketing video showing a Tesla navigating city streets without a driver. When the video was released, Tesla CEO Elon Musk said the vehicle “drives itself (no human input at all) (through) urban streets.”

Because of false expectations, the Tesla driver was “far less vigilant and attentive while driving than he otherwise would have (been) and placed far too much reliance on Autopilot to safely navigate and operate the subject vehicle,” the plaintiffs argued.

A jury agreed, finding Tesla placed the 2019 Model S on the market with a defect that was a legal cause of damage to the victims.

In a social media post, Musk said Tesla will appeal the verdict. LL