Tesla’s Self-Driving Tech Legal Woes Threaten The Industry

Self-driving technology under development by Tesla and its rivals promises safer streets, cleaner air, and reduced urban congestion.

 Tesla’s Autopilot is not its highest-level driver-assistance system. (Photo: Ted Drake Flickr)

The vision shared by Tesla, Alphabet’s Waymo, and others is to make AI-powered taxis affordable enough to replace household car ownership. But a spate of lawsuits could threaten that future, Al Root reported for Barron’s Daily.

Recently, a Miami jury awarded $329 million in damages for a fatal 2019 crash involving Tesla’s Autopilot driver-assistance system.

Tesla argued the driver was speeding and had his foot on the accelerator, overriding Autopilot functions. Still, the jury found Tesla 33% responsible, leaving it with a potential bill of roughly $170 million.

“Today’s verdict is wrong and only works to set back automotive safety and jeopardize Tesla’s and the entire industry’s efforts to develop and implement life-saving technology,” a Tesla spokesperson said.

CEO Elon Musk said Tesla will appeal. This casts a shadow over the sector’s growth.

Wall Street sees AI-trained ride-hailing services as a trillion-dollar opportunity, and self-driving capabilities account for as much as 75% of Tesla’s valuation. Investors should closely monitor the appeal process.

Notably, Tesla’s Autopilot is not its highest-level driver-assistance system. Like nearly all systems currently offered by automakers, it still requires full driver attention.

Meanwhile, Ford Motor—fresh off its second-quarter earnings—plans to unveil new electric vehicle technology on August 11 in Kentucky. CEO Jim Farley is calling it a “Model T moment” for the company that invented the original Model T.