A Miami jury has ruled that EV maker Tesla (TSLA) is partly responsible for a 2019 crash that involved its Autopilot system, and ordered the company to pay $242.5 million in damages to the family of the victim and an injured survivor. The award includes $42.5 million in compensatory damages and $200 million in punitive damages, which was below the $345 million sought by the plaintiffs. The case was heard in the Southern District of Florida and began on July 14.
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The lawsuit focused on a fatal accident in Key Largo, Florida, where Tesla owner George McGee was driving his Model S with Enhanced Autopilot engaged. McGee dropped his phone and reached down to retrieve it, believing the system would automatically brake for obstacles. Instead, the vehicle accelerated through an intersection at more than 60 mph, crashing into a parked car and striking its owners, 22-year-old Naibel Benavides and her boyfriend, Dillon Angulo. Benavides died at the scene, while Angulo suffered multiple broken bones, a traumatic brain injury, and lasting psychological harm.
Plaintiffs’ attorney Brett Schreiber argued that Tesla marketed Autopilot as safer than human drivers and failed to limit its use to highways, which effectively turned public roads into test tracks. Interestingly, the verdict comes as Tesla CEO Elon Musk works to convince investors that the company’s autonomous driving technology is safe and has the potential for robotaxi fleets. Despite the news, Tesla shares fell only slightly on Friday and are down 25% year-to-date.
What Is the Prediction for Tesla Stock?
Turning to Wall Street, analysts have a Hold consensus rating on TSLA stock based on 14 Buys, 15 Holds, and eight Sells assigned in the past three months, as indicated by the graphic below. Furthermore, the average TSLA price target of $310.84 per share implies 2.8% upside potential.
