Tesla has finally settled a lawsuit filed by Walter Huang's family, an Apple engineer who died colliding with a highway barrier with Autopilot engaged on his X SUV model near Mountain View, California, back in 2018.
The settlement was reached through California's Superior Court jury selection and a trial on Monday, permitting Tesla to avoid presenting evidence and testimonies in a highly publicized case.
Tesla's Autopilot Killer Findings
The National Transportation Safety Board investigated the fatal crash. It attributed partial blame to Tesla's technology in 2020, along with potential driver distraction and road construction issues, believing that Huang may have been distracted by a game on his phone before the collision.
The federal agency determined that Tesla's forward collision warning system failed to issue an alert, and its automatic emergency braking system did not engage as Huang's Model X, operating with Autopilot, collided with a barrier on Highway 101. The NTSB also stated that faded lane markings and the positioning of the crash attenuator may have also played a role in the collision.
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Huang's Wrongful Death Lawsuit
Tesla has faced a lawsuit from Huang's family, alleging safety and design flaws in the company's driver assistance systems. The lawsuit, Sz Huang et al v. Tesla Inc. et al, is being heard in a California Superior Court in Santa Clara County.
Huang's attorneys referenced social media posts and marketing materials from Tesla, CEO Elon Musk, and others in court documents, implying that Autopilot enabled Tesla vehicles to be safely driven without continuous attention to the road or hands on the steering wheel.
Internal Tesla emails cited in court documents revealed discussions among Tesla executives and engineers regarding their complacency while using Autopilot or related premium features, admitting to reading emails and using their phones while driving with these systems activated.
A civil jury trial was scheduled to commence this week at a courthouse in San Jose, California, just before Tesla settles. Attorneys representing Tesla contended that Huang was an inattentive driver who, despite knowing better, was playing mobile games on his phone at the time of the crash. The company has requested that the amount listed in the settlement agreement be kept confidential from the public.
Impact on Tesla's Culture and Safety
The fatal crash and filings in this lawsuit had already raised doubts about Tesla's culture, safety attitudes, and the reliability of its driver assistance systems among potential shareholders and customers. If a jury had found Tesla liable, in part or in whole, for Huang's death, the trial would have established a precedent in product liability suits, which could have made it easier for other plaintiffs to sue or succeed in similar cases against the EV maker.
In May 2022, Musk stated on social media that Tesla would not pursue victory in a just case against them, even if they were likely to win, and would not surrender or settle an unjust case against them, even if they were likely to lose.
In a filing requesting the court to seal the settlement terms, Tesla's attorneys stated that the company had reached a settlement agreement with the plaintiffs to conclude years of litigation. They argued for sealing the exact dollar amount of the settlement because revealing it could be seen as evidence of Tesla's potential liability for losses by other potential claimants or the plaintiffs' bar, which could discourage settlement opportunities in future cases.
