Tesla Inc. (NASDAQ:TSLA) is facing fresh legal and regulatory challenges following the National Transportation Safety Board (NTSB) announcement that it will examine the fatal Texas crash that took place last week involving a Model 3 sedan.
NTSB Announces Probe
According to a report by Reuters on Wednesday, the agency said it will investigate the incident, which is already under scrutiny of the National Highway Traffic Safety Administration (NHTSA). The collision occurred in Katy, Texas and resulted in the death of 76-year-old Martha Avila.
Tesla did not immediately respond to Benzinga‘s request for comment.
The family of the victim also filed a wrongful-death lawsuit tied to the same crash, according to statements from attorneys cited in the report.
In the filing, the plaintiffs argue Tesla should be held responsible for the death, alleging gross negligence and a failure to warn about claimed defects involving Autopilot and Full Self-Driving, the report said.
The suit also seeks more than $1 million in damages along with punitive damages, citing Tesla’s alleged "reckless disregard for a substantial risk of severe bodily injury."
Avila’s daughter, Jennifer Barbour, and her husband, Justin Barbour, said the Model 3 driver told police he turned on Autopilot before the vehicle went through the front wall of Avila’s home on June 19, according to the complaint.
Tesla Denies FSD Involvement, Gary Black Decries PR
Following reports of the crash, Tesla CEO Elon Musk, as well as the company’s AI lead Ashok Elluswamy, denied claims that the FSD/Autopilot systems were responsible for the crash.
Elluswamy, in a post on X, said that the driver had disengaged Autopilot by pressing the gas pedal all the way down before the crash. Notably, NHTSA is already probing the FSD tech and the investigation recently moved to the Engineering analysis phase.
On the other hand, investor Gary Black of The Future Fund LLC lamented Tesla’s lack of a “proactive” PR strategy, which leads to there being no communication from the brand’s side to balance the narrative.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by a Benzinga editor.
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