In a pivotal juncture for Tesla, the company is gearing up for its inaugural trial in response to allegations that its Autopilot driver assistance feature played a role in a fatality. The trial holds immense significance as it will test the veracity of CEO Elon Musk’s assertions about the technology.
The autonomous driving capability is a linchpin of Tesla’s financial prospects, as per Musk. The CEO’s engineering expertise is now under scrutiny due to allegations in one of two lawsuits that he was directly involved in the team behind the faulty technology. A favorable outcome for Tesla could bolster trust and drive sales of the software, which can command up to $15,000 per vehicle.
The automaker is confronting two back-to-back trials, with more to come.
The initial trial, slated for mid-September in a California state court, involves a civil suit alleging that the Autopilot system caused a Tesla Model 3 owned by Micah Lee to abruptly veer off a highway near Los Angeles, collide with a palm tree, and ignite in flames, all within moments. The 2019 incident, previously undisclosed, resulted in the death of Lee and severe injuries to his two passengers, including an 8-year-old boy who was seriously harmed. The lawsuit, filed by Lee’s estate and the passengers, contends that Tesla was aware of defects in Autopilot and other safety systems at the time of the vehicle’s sale.
The second trial, scheduled for early October in a Florida state court, stems from a 2019 crash north of Miami. In this case, the owner of a Tesla Model 3, Stephen Banner, collided with the underside of an 18-wheeler truck that had entered the road, leading to the removal of the Tesla’s roof and Banner’s death. According to the lawsuit filed by Banner’s spouse, Autopilot failed to intervene. Tesla has denied responsibility for both accidents, attributing them to driver error, and maintained that Autopilot is safe when supervised by humans. The company emphasizes the necessity for drivers to maintain attention on the road and their hands on the steering wheel.
The upcoming trials are expected to uncover new evidence regarding Musk’s knowledge of Autopilot’s capabilities and potential shortcomings. Internal emails have been presented in pretrial filings suggesting Musk’s significant role in the Autopilot team.
While Tesla secured a significant victory in an April trial in Los Angeles by emphasizing the requirement for human supervision despite the names “Autopilot” and “Full Self-Driving,” the current trials hold greater gravity due to the loss of lives. Legal experts speculate that the outcome could significantly impact Tesla’s narrative and settlements in other cases.
Matthew Wansley, a former General Counsel of nuTonomy and Associate Professor of Law at Cardozo School of Law, suggests that multiple victories for Tesla could lead to more favorable settlements in other cases. Conversely, a substantial loss with significant damages could shape the narrative negatively for the company.
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The trial proceedings are also expected to shed light on Tesla’s internal communications and the extent of Musk’s involvement in Autopilot’s development and operations. The trials’ outcomes could mark a defining moment for Tesla and its approach to autonomous driving technology.
