Tesla avoids trial by settling two fatal Autopilot crash cases
What's the story
Tesla has settled two lawsuits stemming from fatal accidents in California in 2019, court documents show. The cases involved the company's Autopilot advanced-driver-assistance software. The settlements come after a Florida jury recently ordered Tesla to pay $243 million in damages for another deadly Model S crash in 2019 involving Autopilot.
Legal strategy
Tesla rejected $60 million settlement offer for Florida lawsuit
In response to the Florida jury's decision, Tesla hired a team of high-profile lawyers and sought a judge's ruling declaring the verdict legally unjustified. The electric vehicle maker also asked for a new trial. Notably, Tesla had turned down a $60 million settlement offer for the Florida lawsuit last month, court filings showed.
Software concerns
Lawsuits critical for Tesla's $1.4 trillion valuation
The lawsuits and Florida verdict are critical as much of Tesla's $1.4 trillion valuation hinges on CEO Elon Musk's vision to aggressively scale up its robotaxis and the full self-driving (FSD) software that powers them. FSD is an upgraded version of Autopilot. The first lawsuit involved a 15-year-old boy who died after a Tesla Model 3, with Autopilot engaged, rear-ended their vehicle in Alameda County, California.
Crash details
Second lawsuit pertains to crash that killed 2 people
The second lawsuit pertains to a December 2019 incident in Gardena, California. Here, a Tesla Model S with Autopilot failed to stop at a red light and collided with a Honda Civic carrying two people. Both victims died in the crash. While Tesla has settled this case, the trial against the driver of the Model S and other defendants is still ongoing.
Settlement terms
Details of the settlements remain undisclosed
The specifics of the settlements in both cases have not been revealed. The lawsuits were dismissed on "satisfactory completion of specified terms." Trials for both cases were due to begin next month - one in Alameda County Superior Court and the other in Los Angeles County Superior Court. However, a judge in Alameda Superior Court canceled the trial on Tuesday while Tesla and plaintiffs agreed to withdraw their motions in Los Angeles trial.