The $243 million verdict from a Florida jury in the 2019 Autopilot crash fatality case threatens Tesla’s efforts to build its robotaxi network. The court determined that the driver-assistance system contained defects according to the recent verdict. Tesla plans to appeal the decision because they believe the driver made the mistake.
The CEO Elon Musk faces regulatory challenges to deploy robotaxi services across half of the U.S. population before the end of the year. The court decision will increase regulatory oversight of Tesla’s autonomous technology which may extend the timeline for its expansion plans.
The market value of Tesla depends heavily on its robotics and artificial intelligence growth potential. The company faces mounting pressure because of safety issues together with declining EV sales and Musk’s political controversies. The company needs to win public trust in its Full Self-Driving software according to analysts.
The case involved outdated Autopilot software according to Piper Sandler analysts who stated this version no longer affects current FSD deployment. The current situation creates difficulties for Tesla because it needs to demonstrate its technology readiness for commercial deployment at scale.
