Tesla Faces $243M Verdict After Rejecting $60M Settlement in Fatal Autopilot Crash – August 26, 2025

Tesla Rejects $60 Million Settlement, Ordered to Pay $243 Million in Fatal Autopilot Crash

On August 26, 2025, Tesla faced a major legal setback when a U.S. jury ordered the company to pay $243 million in damages for a fatal Autopilot crash that occurred in 2019. The ruling came after Tesla rejected a previous $60 million settlement offer, believing it could defend its technology in court. Instead, the decision has now become one of the most significant verdicts against the company in connection with its driver-assistance system.

The case involved the tragic death of Naibel Benavides-Leon, who was killed when her Tesla, operating in Autopilot mode, collided with a parked vehicle. The driver at the time was reportedly distracted and looking at his phone, raising questions about the limits of Tesla’s self-driving system and the responsibilities of human drivers.

The jury ruled that Tesla was 33% responsible for compensatory damages, while assigning the remainder of fault to the driver. However, the jury also imposed the full amount of punitive damages, bringing the total penalty to $243 million. This landmark decision highlights the growing legal scrutiny surrounding autonomous and semi-autonomous driving technologies.

Tesla’s legal team had argued that the crash was primarily the driver’s fault, as Autopilot requires human supervision at all times. Yet, the court determined that Tesla had failed to ensure its technology was safe enough to prevent such tragedies. Critics say the company’s marketing of Autopilot often gives drivers a false sense of security, encouraging misuse of the system.

The rejected settlement of $60 million now appears to have been a costly gamble for Tesla. By refusing the offer, the company faces not only a much larger financial penalty but also reputational damage at a time when safety concerns over self-driving technology continue to grow worldwide.

Tesla is expected to appeal the decision, hoping to reduce the damages or overturn the verdict. Still, this case marks a turning point in how courts view the responsibility of carmakers developing autonomous driving systems. The ruling could also influence future regulations and lawsuits in the evolving field of artificial intelligence and transportation.

For Tesla, which has long positioned itself as a pioneer of innovation, the case serves as a reminder that technological advancement must go hand in hand with accountability and safety. As the debate over self-driving cars intensifies, the outcome of this trial will remain a defining moment for the industry.