Technology safety has been debated again because of Autopilot, Tesla’s new venture into the automotive market. The company emphasizes that Autopilot requires constant supervision, but the lack of technical restrictions outside of appropriate highways makes the discussion about safety more complex, especially in the legal arena. The argument is that blind trust in technology will no longer be tolerated in court.
Autopilot usage flaws exposed
A Florida jury on Friday found Tesla TSLA.O liable to pay $243 million to victims of a 2019 fatal crash of an Autopilot-equipped Model S, a verdict that could encourage more legal action against Elon Musk’s electric vehicle company. The verdict is a rare win for victims of accidents involving Autopilot. Musk has been pushing to rapidly expand Tesla’s recently launched robotaxi business based on an advanced version of its driver assistance software. Tesla shares fell 1.8% on Friday, and are down 25% this year.
Jurors in Miami federal court awarded the estate of Naibel Benavides Leon, as well as her former boyfriend Dillon Angulo, $129 million in compensatory damages plus $200 million in punitive damages, according to a verdict sheet. Tesla was held liable for 33% of the compensatory damages, or $42.6 million. Jurors found the driver George McGee liable for 67%, but he was not a defendant and will not have to pay his share.
“Tesla designed Autopilot only for controlled-access highways yet deliberately chose not to restrict drivers from using it elsewhere, alongside Elon Musk telling the world Autopilot drove better than humans. Today’s verdict represents justice for Naibel’s tragic death and Dillon’s lifelong injuries” Brett Schreiber, a lawyer for the plaintiffs, said in a statement.
New lawsuits may occur
Tesla has faced many similar lawsuits over its vehicles’ self-driving capabilities, but they have been resolved or dismissed without getting to trial. In June, a judge rejected Tesla’s bid to dismiss the Florida case. Experts said Friday’s verdict may spur more lawsuits, and could make future settlements more costly.
Tesla managed to avoid prosecution for a while, but the court ruling holds the company liable in lawsuits involving Autopilot. Lawyers were able to demonstrate technical flaws and even possible negligence in the way the car’s technology is presented to the public. The case could lead to further legal penalties, potentially increasing compensation claims.
Tesla’s self-driving car ambitions could face new legal impacts
“It’s a big deal,” said Alex Lemann, a law professor at Marquette University. “This is the first time that Tesla has been hit with a judgment in one of the many, many fatalities that have happened as a result of its Autopilot technology.” The verdict could also impede efforts by Musk, the world’s richest person, to convince investors that Tesla can become a leader in so-called autonomous driving for private vehicles as well as robotaxis it plans to start producing next year.
This case could harm Elon Musk’s attempt to cement his position with investors that Tesla will lead the autonomous vehicle market. The repercussions of the case undermine confidence in Autopilot and the company’s Robotaxis project, and pose a reputation risk. If the company’s new processes reinforce the thesis of recurring failures, there is a risk to the future and success of Musk’s company.
Tesla faces new era of criticism over safety and promises
Tesla, which had previously managed to maintain its reputation for innovation and legal criticism, now faces the real consequences of the problems surrounding its Autopilot system. Musk is trying to push the company’s next step with robotaxis and advanced technology, but now he must rethink the company’s strategic and financial path toward a more responsible future.
GCN.com/Reuters