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Tesla rejected $60 million settlement before losing $243 million Autopilot verdict

Tesla rejected a $60 million settlement and was found grossly negligent in Autopilot design, facing $243 million in damages including $200 million punitive, marking a major industry precedent.

  • Tesla Inc. rejected a $60 million settlement proposal on May 30 before a Miami federal court jury ordered it to pay $243 million in damages this month.
  • Plaintiffs say the lawsuit filed in 2021 centers on a Model S with Autopilot that struck two people, killing Naibel Benavides Leon and seriously injuring Dillon Angulo.
  • The verdict allocates $129 million in compensatory damages and $200 million in punitive damages, assigning Tesla 33 per cent of compensatory liability—$42.6 million—and all punitive damages.
  • Tesla said it will appeal, arguing trial errors and driver responsibility, while analysts warn the $243 million verdict could strain Tesla's finances and reputational narrative, affecting investors and R&D budgets.
  • Industry analysts say the ruling could prompt regulators and advanced driver-assistance system developers to re-evaluate marketing, warnings, and testing, as plaintiffs' lawyers note it's the first third-party wrongful-death verdict involving Autopilot.
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PressNewsAgency broke the news in on Monday, August 25, 2025.
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