Tesla's latest legal challenge: self-driving technology

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【Summary】An American judge suggests that Elon Musk and other Tesla executives were aware of flaws in the company's self-driving technology. This ruling could lead to a lawsuit over a 2019 fatal crash involving a Tesla Model 3. The judge also found fault with Tesla's inadequate warnings and marketing strategies, which portrayed the cars as fully autonomous. However, Tesla recently won a legal battle in California over its driver-assistance software. No new trial date has been set for the Palm Beach case.

FutureCar Staff Nov 23, 2023 10:14 PM PT

Tesla's latest legal challenge: self-driving technology

An American judge in the Palm Beach County Circuit Court in Florida has suggested that Elon Musk and other executives at Tesla may have been aware of shortcomings in the company's self-driving technology. The judge stated that there is "reasonable evidence" indicating that the CEO and other executives knew about defects in the technology but still allowed the cars to be operated unsafely. According to the ruling, Tesla employed a marketing strategy that portrayed its products as fully autonomous, with Musk's public statements significantly influencing people's perceptions of the technology's capabilities.

This ruling is significant because it paves the way for a lawsuit related to a 2019 crash near Miami involving a Tesla Model 3. The crash resulted in the death of the driver, Stephen Banner, and his wife sued Tesla, accusing the company of intentional misconduct and gross negligence. This lawsuit could potentially expose Tesla to punitive damages. The judge drew parallels between Banner's crash and Tesla's first fatal incident involving autopilot in 2016, where a Model S collided with a semi-truck, resulting in the driver's death.

Judge Scott also found merit in the argument that Tesla's warnings in its manuals and "clickwrap" were inadequate. He pointed out a 2016 video that showcased a Tesla vehicle operating without human input, which lacked disclaimers indicating the video's aspirational nature. This raised concerns about the company's transparency. Furthermore, the judge highlighted that despite indications of their fallibility, Tesla made strong public statements and engaged in a marketing strategy that portrayed its products as autonomous.

It is worth noting that this ruling in Florida comes after a legal victory for Tesla in California. In an October tribunal, a court vindicated Tesla's driver-assistance software in a tragic accident that resulted in the loss of a driver's life and significant injuries to two passengers. As of now, no new trial date has been set for the Palm Beach case.

Image source: Flickr/Jakob Härter under Creative Commons 2.0 license.