Elon Musk, co-founder and chief executive officer of Tesla Motors Inc., attends a key delivery ceremony of the company's premium electric sedan Model S vehicles to customers in Tokyo, Japan, on Monday, Sept. 8, 2014. Tesla may partner with Toyota Motor Corp. again in the future, Musk said. Photographer: Yuriko Nakao/Bloomberg via Getty Images
Tesla, the electric car giant, has reached a settlement in a lawsuit stemming from a 2018 crash that claimed the life of Apple engineer Walter Huang.
The incident occurred when Huang’s Tesla Model X, operating on Autopilot mode, collided with a highway barrier, sparking legal proceedings initiated by the engineer’s family.
Scheduled to commence this week in the California Superior Court, the trial would have placed Tesla’s Autopilot and Full Self-Driving technologies under intensified scrutiny.
Details of the settlement remain undisclosed, pending judicial approval, as Tesla has yet to respond to requests for comment.
Prior to the settlement, Tesla had contended that Huang had misused the Autopilot system by engaging in a video game shortly before the accident. The company has previously succeeded in legal battles by asserting that drivers failed to adhere to instructions to maintain attention while using the Autopilot feature.
The settlement coincides with a challenging period for Tesla, marked by a series of lawsuits over crashes allegedly involving its driver-assistant technology. The US National Highway Traffic Safety Administration has also initiated investigations into several accidents linked to Autopilot.
Despite Tesla’s longstanding promises to develop autonomous vehicles, it has yet to bring such a product to market.
In a recent announcement, Tesla’s CEO Elon Musk revealed plans to unveil a self-driving robotaxi in August. However, the settlement with Huang’s family arrives amid concerns over Tesla’s weakening sales performance.
The company witnessed a significant decline in deliveries during the first quarter of this year, attributed to factors such as a fire at its European factory, global shipping disruptions, and mounting competition from rivals like BYD.
Responding to the competitive landscape, Tesla has repeatedly reduced prices, yet demand in key markets such as China has faltered. This downturn in sales has been reflected in Tesla’s stock performance, with shares losing nearly a third of their value since the beginning of the year.
Chioma Kalu
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