A Florida jury has ordered Tesla to pay $243 million in damages in a case stemming from a fatal 2019 crash involving its Autopilot system. The verdict, delivered on Friday, August 1, 2025, marks a significant legal setback for the electric vehicle company and could potentially open the door to further lawsuits related to its driver-assistance technology.

The case revolved around a 2019 incident in Key Largo, Florida, where George McGee was driving a Tesla Model S equipped with Autopilot. McGee dropped his phone and bent down to retrieve it, momentarily diverting his attention from the road. During this time, the Tesla failed to detect a parked Chevrolet Tahoe at an intersection and struck Naibel Benavides Leon and her boyfriend, Dillon Angulo, who were standing nearby. Leon died from her injuries, while Angulo suffered severe injuries.

The plaintiffs argued that Tesla's Autopilot system was defective, specifically citing its inability to detect stationary vehicles at intersections and its limitations for use on controlled-access highways only. They also contended that Tesla exaggerated the capabilities of Autopilot without providing adequate warnings about its limitations. Brett Schreiber, the plaintiffs' attorney, accused Tesla of knowing that the Autopilot function increased the likelihood of driver distraction. He stated that Tesla advertised Autopilot in a way that greatly exaggerated its capabilities and hid its deficiencies.

Tesla, on the other hand, argued that the crash was primarily due to driver distraction and error. The company emphasized that McGee was speeding and not paying attention to the road. They maintained that no vehicle could have avoided the accident under those circumstances and that their cars meet all required safety standards. Tesla also stated that McGee's actions of speeding and searching for his phone overrode the Autopilot system.

The jury ultimately found Tesla 33% responsible for the crash, while assigning 67% of the blame to McGee. McGee had reportedly settled with Leon's family for an undisclosed sum. The $243 million award includes $200 million in punitive damages and $43 million in compensatory damages. Tesla plans to appeal the decision.

The verdict has sparked debate about the safety and reliability of semi-autonomous driving systems. Some experts believe that it could lead to increased regulatory scrutiny and further litigation against Tesla and other automakers developing similar technologies. Others argue that the decision could hinder the development and implementation of life-saving technology.

Tesla's Autopilot is an advanced driver assistance system designed to enhance safety and convenience. It includes features such as Traffic-Aware Cruise Control, Automatic Emergency Braking, and Lane Departure Avoidance. Tesla claims that when used properly, Autopilot reduces the overall workload for drivers and can decrease traffic collisions. The company's Vehicle Safety Report for Q2 2025 indicated one crash for every 6.69 million miles driven while using Autopilot. This is more infrequent than the rate for Tesla drivers not using Autopilot, which was one crash for every 963,000 miles driven.

However, some experts have questioned the way Tesla presents its safety data. Concerns have been raised that Autopilot is primarily used on highways, which are already safer roads, and that Tesla only counts crashes where airbags or seatbelt restraints are deployed.

This ruling comes as Elon Musk seeks to convince the public that Tesla cars are safe enough to drive on their own, with plans to roll out a driverless taxi service in several cities in the coming months.