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Tesla Faces Major Penalty: Ordered to Pay Over $240 Million Following Fatal Florida Crash

Sunday, August 3, 2025 by Bella Nunez

Tesla Faces Major Penalty: Ordered to Pay Over $240 Million Following Fatal Florida Crash
Million-dollar verdict against Tesla for safety failures in its Autopilot system - Image by © Wikimedia

A federal jury in Miami has held Tesla partially accountable for a tragic accident that occurred in Key Largo in 2019, involving a vehicle equipped with Autopilot. The collision resulted in the death of a 22-year-old woman and left her companion severely injured. On August 1, the jury delivered a verdict requiring the electric vehicle manufacturer, led by entrepreneur Elon Musk, to pay more than $240 million in punitive and compensatory damages.

The jury determined that Tesla was 32% responsible for the incident, while the vehicle's driver, George McGee, was found 67% responsible. McGee struck Naibel Benavides León and Dillon Angulo while they were outside their parked vehicle on the roadside, according to reports from Local 10 news.

The lawsuit revealed that McGee was using Autopilot when he became distracted, searching for his phone on the floor. This led him to miss a warning light and stop sign before colliding at high speed. Tesla claimed the driver was solely at fault, but the jury disagreed.

The victims' families accused Tesla of misleadingly advertising Autopilot as more advanced than it actually is. During the trial, it was disclosed that Tesla denied possessing crucial data regarding the crash. A forensic expert hired by the plaintiffs managed to locate this information within the vehicle's systems.

The jury awarded $200 million in punitive damages and an additional $43 million for compensatory damages. This substantial judgment could potentially spur a wave of similar lawsuits, as noted by legal experts in reports by U.S. media.

Tesla labeled the ruling as "erroneous" and announced plans to appeal. The company emphasized that the driver exceeded speed limits, had his foot on the accelerator, and diverted his attention from the road—actions they argue negate any Autopilot liability.

This legal case is notable for reaching federal court, as most lawsuits against Tesla involving Autopilot incidents are settled confidentially before trial, highlighting the potential precedent this decision might set.

Despite Tesla's claims of technological advancements since 2019, the company's reputation for reliability remains under scrutiny. Tesla Inc. has been facing growing criticism over Autopilot issues. The firm consistently argues that Autopilot does not make their vehicles autonomous, stressing that drivers must remain "fully attentive" and keep their hands on the wheel at all times.

The company maintains that its features are designed to assist, not replace, human drivers. However, a key aspect of the lawsuit was how Tesla communicates these risks.

According to an EFE report, a class-action lawsuit involving approximately 10,000 drivers in Australia was made public in June, seeking compensation from Tesla over automatic braking problems. During the same month, U.S. authorities requested information from Musk's company due to incidents occurring during the initial hours of the robotaxi test service in Austin, Texas. Users shared videos on social media showing these vehicles exceeding speed limits or driving in the wrong direction.

In 2024, Tesla Inc. reached a settlement to resolve a lawsuit about an accident involving one of its semi-autonomous vehicles in California in 2018, which resulted in the driver's death.

FAQs on Tesla's Autopilot Legal Challenges

What was Tesla found liable for in the Florida crash?

Tesla was found 32% responsible for a fatal accident in Key Largo, Florida, where a car using Autopilot killed a 22-year-old woman and severely injured another individual.

Why did the jury hold Tesla accountable?

The jury concluded that Tesla's misleading advertising of Autopilot contributed to the accident, despite the driver being distracted and ignoring road signals.

How much is Tesla required to pay in damages?

Tesla is ordered to pay over $240 million, including $200 million in punitive damages and $43 million in compensatory damages.

What is Tesla's response to the jury's decision?

Tesla has labeled the decision as "erroneous" and plans to appeal, asserting that the driver was responsible for the crash.

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