Elon Musk faces critical legal challenges regarding the safety of Tesla's self-driving technology. In Miami, a driver admitted excessive trust in the Autopilot feature contributed to a fatal accident. Concurrently, regulators in Oakland aim to suspend Tesla's vehicle sales over similar concerns. Musk's history of exaggeration raises doubts among investors and regulators, especially as Tesla's electric vehicle sales decline. The Miami case introduces the risk of punitive damages against Tesla, which could amount to tens of millions or more, endangering Musk's goal of introducing driverless robotaxis in the near future.
"I trusted the technology too much," said George McGee, who ran off the road and killed a woman out stargazing with her boyfriend. "I believed that if the car saw something in front of it, it would provide a warning and apply the brakes."
Musk's tendency to talk big - whether it's his cars, his rockets or his government costing-cutting efforts - have landed him in trouble with investors, regulators and courts before, but rarely at such a delicate moment.
Musk can no longer count on a light regulatory touch from Washington. Meanwhile, sales of his electric cars have plunged and so a hit to his safety reputation could threaten his next big project: rolling out driverless robotaxis - hundreds of thousands of them - in several U.S. cities by the end of next year.
Lawyers for the family of the dead woman... convinced the judge overseeing the jury trial to allow them to argue for punitive damages. A car crash lawyer not involved in the case... said that could cost Tesla tens of millions of dollars, or possibly more.
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