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U.S. Court Orders Tesla to Pay Billions in Damages Over Autopilot Fatal Accident

Tesla Found 33% Liable for Accident
Musk Says "We Will Appeal"

Tesla has been ordered to pay billions of won in damages after partially losing a U.S. lawsuit related to a fatal accident involving its Autopilot driver-assistance system.


According to U.S. business media outlet CNBC and AFP on August 1 (local time), a jury at the Miami federal court ruled that Tesla was approximately 33% responsible for a fatal accident involving Autopilot that occurred in Florida in 2019. As a result, Tesla must pay about $243 million (approximately 337.8 billion won) to the victims.


U.S. Court Orders Tesla to Pay Billions in Damages Over Autopilot Fatal Accident Tesla logo. Photo by Reuters Yonhap News

Initially, some media outlets reported the compensation amount as $329 million (about 458 billion won), but later corrected this based on statements from the plaintiffs' attorneys. They clarified that Tesla is responsible for 33% of the $129 million in damages determined by the jury, which amounts to $43 million, and must also pay an additional $200 million in punitive damages, bringing the total to $243 million.


The accident occurred on April 25, 2019. At the time, a Tesla Model S was driving at night on a two-lane road in southern Florida and collided with a sports utility vehicle (SUV) parked on the roadside. A young couple standing next to the SUV was struck by the car, resulting in the woman's death and serious injuries to the man. At the time of the accident, the driver was talking on the phone, dropped the phone, and was bending down to retrieve it. The vehicle was operating in Autopilot mode at approximately 100 km/h.


The plaintiffs argued that the Autopilot system, which was active at the time, failed to properly detect the road boundaries and obstacles ahead, and that Tesla did not adequately warn of the risks associated with the Autopilot system. In response, Tesla's legal team insisted that the negligent driver, who was not paying attention to the road, was entirely at fault. However, the jury ultimately sided with the plaintiffs.


The jury found that Tesla's technical defects were a contributing factor in the accident and determined that even though the driver was at fault, all responsibility could not be placed solely on the driver.


In a statement issued after the verdict, Tesla said, "Today's decision is wrong, sets back automotive safety, and threatens the development and adoption of life-saving technologies by Tesla and the entire industry," adding, "We plan to appeal due to serious legal errors." CEO Elon Musk also wrote on X (formerly Twitter), "We will appeal."


On this day, Tesla's stock closed at $302.63 on the New York Stock Exchange, down 1.83% from the previous day. Tesla's stock price has fallen 25% so far this year as of this date.


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