- Convincing regulators about Autopilot safety could be tough after verdict
- Jury decision follows years of Autopilot-related probes, recalls
- Robotaxi success crucial for Tesla amid cooling EV demand
A court verdict against Tesla (TSLA.O), opens new tab last week, stemming from a fatal 2019 crash of an Autopilot-equipped Model S, could hurt its plans to expand its nascent robotaxi network and intensify concerns over the safety of its autonomous vehicle technology.
A Florida jury ordered Musk’s electric vehicle company on Friday to pay about $243 million to victims of the crash, finding its Autopilot driver-assistance software defective. Tesla said the driver was solely at fault and vowed to appeal.
The verdict follows years of federal investigations and recalls related to collisions involving Tesla’s autonomous-vehicle technology, and comes as CEO Elon Musk seeks regulatory approval to rapidly expand the robotaxi service across the U.S.
“The public perception of this verdict or things like this are going to fuel pressure on regulators to say, ‘We just can’t let this stuff be launched without a lot more due diligence’,” said Mike Nelson, founder of Nelson Law and an expert on legal issues in the mobility sector.
Tesla could have a tough time convincing state regulators that its technology is road-ready, threatening Musk’s goal of offering robotaxis to half the U.S. population by year end, legal experts and Tesla investors said.