Tesla announced that it would appeal to protect its honor.

A Florida jury has just reached a conclusion: An error in Tesla’s self-driving software was partly responsible for the accident that killed a 22-year-old woman in 2019. The ruling is a significant setback for the automaker, which is betting much of its future on the development of self-driving taxis.

According to the procedure, Tesla will have to pay up to $243 million in damages to the victim’s family, equivalent to 33% of responsibility for the accident. The airline said it would appeal.

“Today’s ruling is wrong, and it affects the efforts of Tesla and the entire industry in developing and deploying life-saving technology,” the company said, adding that it expects the compensation to be reduced on appeal.

The decision comes just weeks after Tesla began testing restrictions on self-driving taxis in Austin, Texas. Elon Musk, the company’s chief executive, said in a conference call with investors in July that the service could cover half of the U.S. population by the end of the year. Musk, who was once overly optimistic about the pace of product launches, said Tesla’s growth depends on revenue from autonomous taxis and humanoid robots rather than declining car sales.

According to The NY Times, the trial focused attention on the safety of Tesla’s driver assistance system, known as Autopilot. This is the first federal jury trial involving a fatal crash with Autopilot. According to the plaintiff’s lawyer, at least five other lawsuits are pending.

Earlier in 2019, Tesla was sued by the family of Naibel Benavides, a college student who died on April 25, 2019, after being hit by a Tesla Model S driven by Mr. McGee. Dillon Angulo, her boyfriend, was lucky only to be injured.

McGee approached the T-intersection with Tesla’s Autopilot software activated. The Tesla rushed through the intersection at a speed of more than 80 km/h and crashed into a black SUV parked on the other side of the road. “We are suing for Naibel,” Angulo said at the trial.

CEO Elon Musk has always insisted that Tesla is the safest electric car ever produced. This may be dismissed, after a series of tests cited by leading technology experts at the trial. Elon Musk may have been overconfident.

“What makes this trial meaningful, is that it’s being conducted on a community scale,” said Michael Brooks, chief counsel at the Center for Automotive Safety, a consumer advocacy group.

Tesla previously stated that the company understands the system’s limitations, saying that the Autopilot feature “requires active supervision by the driver and they must not leave the vehicle fully autonomous.” Musk affirmed that the proper use of Autopilot will help drivers have safe trips, instead of becoming victims of unwanted collisions.

“Tesla has always defended itself. They think it’s people who are bad drivers, not technology,” said Gene Munster, managing partner at Loup Ventures, an investment firm.

As of 2023, at least 18 deaths may be related to self-driving assistance technology. The agency said it had investigated nearly 200 accidents, including Tesla. The California Department of Motor Vehicles then accused the company of falsely advertising, leading customers to believe that Autopilot could drive the vehicle on its own in the safest way.

Although Tesla has reported only one crash with airbags every 5.94 million miles of Autopilot vehicles, compared to the 0.6 million miles of manned cars, many experts say the self-reported data lacks an independent factor. An MIT study from 2021 highlighted that using Autopilot distracts drivers, leading to accidents that don’t decrease as advertised.

Autopilot still has many defects, so can Tesla entrust the future to Robotaxi – a self-driving taxi service that promotes driverlessness? Elon Musk has stated that by 2026 there will be millions of robotaxis in widespread operation, making a major contribution to Tesla’s revenue.

On June 22, 2025, Tesla officially launched a limited Robotaxi service in Austin, Texas with some Model Y using FSD. The car still has someone sitting in the front passenger seat to supervise. However, only in the first week, users recorded many incidents such as: cars encroaching on the opposite lane, braking without warning, exceeding speed, and even dropping off passengers at dangerous traffic locations.

Analysts warn that Tesla is moving very fast but is prone to major risks: revenue from robotaxis is unclear in the short term, while compromising trust in safety has a far-reaching impact on the brand. If it fails, robotaxi will certainly become a big step in the future that Elon Musk has all hopes for.