Tesla Inc. (NASDAQ:TSLA) has settled a wrongful death lawsuit in Florida stemming from a 2018 high-speed crash that killed a teenage passenger riding in one of the company's sedans, resolving the automaker’s role in a case that had been headed to trial this week.
Tesla Exits Case Before Trial
According to a Reuters report, a trial had been scheduled to begin Monday in state court in Fort Lauderdale against the estate of the teenage driver and Tesla was removed as a defendant in a court order entered Sunday. Lawyers for the plaintiff said in a filing last week that the claim against Tesla had settled.
The case centered on a 2014 Tesla Model S crash that killed both the passenger and the 18-year-old driver. Court records cited by Reuters say the driver was traveling about 116 mph on a curve with a 25 mph speed limit when he lost control and slammed into two concrete walls.
Speed Limiter Claim Sits At Center
The driver's parents, whose estate had continued to fight the lawsuit, said a Tesla technician had disabled speed-limiting software without their knowledge, removing a cap that had prevented the car from traveling faster than 85 mph.
Tesla denied wrongdoing and argued that the driver's "reckless" operation caused the crash, "with or without a speed limiter." Lawyers for the driver's estate also denied the plaintiff's claims.
Settlement Adds To Tesla Legal Pressure
The Florida settlement adds to a growing list of crash-related lawsuits involving Tesla vehicles. Reuters reported that Tesla last year also resolved a wrongful death lawsuit filed by the estate of a man killed in 2021 after his Tesla crashed and caught fire near Dayton, Ohio, with the company again denying wrongdoing.
In a separate Florida case, a federal judge in February upheld a $243 million verdict tied to a 2019 crash involving an Autopilot-equipped Model S that killed a 22-year-old woman and severely injured her boyfriend. Tesla is still appealing that judgment.
The news of the settlement arrives after Electrek reported last week that Tesla faces more than 21 active lawsuits, including wrongful death claims, cases over its self-driving and driver-assistance systems, and racial discrimination allegations. The report estimated Tesla's potential exposure at between $2.1 billion and $14.5 billion.
Tesla stock continues to show strong long- and short-term price trends, but its medium-term trend remains negative, alongside a weak value ranking, according to data from Benzinga’s Edge Stock Rankings.
Price Action: Tesla shares fell 2.03% to $392.50 on Monday, dipping another 0.025% in after-hours trading, according to Benzinga Pro.
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