Tesla’s Full Self-Driving Legal Troubles Are Far From Over

One Dispute Resolved Quietly

Tesla's Full Self-Driving system was once among the most hyped technologies in the auto industry. But over time, it has drawn scrutiny over safety risks, including crashes that led to fatalities, lawsuits, and recalls. The first known pedestrian fatality involving FSD happened in November 2023, when 71-year-old Johna Story was struck and killed by a Model Y operating in FSD mode on an Arizona highway.

That case has now reportedly been settled. According to Bloomberg, Tesla and Story’s daughter, the plaintiff, quietly resolved the lawsuit. Her attorney, Dustin Birch, said his client was “happy to put this behind her.”

Tesla

The Heat Stays On

The settlement terms were not disclosed. Still, the resolution comes at a sensitive time for Tesla as pressure continues to build around FSD. Recently, two U.S. senators urged NHTSA to investigate the system, arguing that the EV maker's safety statistics are “weak and misleading.”

Another fatal crash was also recently reported, this time involving Autopilot. A Tesla Model 3 allegedly operating on the driver-assistance system crashed into a Texas home, killing a grandmother who was inside the living room. Settling Story’s case removes one more legal headache for Tesla.

But if anything, the 2023 case underscored the limitations of FSD, particularly in reduced-visibility conditions. Story had reportedly gotten out of her car to direct traffic around an earlier crash, where drivers’ visibility had been impaired by sun glare, before she was struck by the Model Y.

Tesla

Beyond The Settlement

The settlement could also be used against Tesla CEO Elon Musk’s previous statement, which he called “My commitment” in an X post: “We will never seek victory in a just case against us, even if we will probably win. We will never surrender/settle an unjust case against us, even if we will probably lose.”

Without official details on the settlement, it is difficult to draw firm conclusions. But Tesla is facing billions of dollars in potential legal exposure from lawsuits, and a federal jury ordered the company to pay $243 million in a fatal Autopilot crash case. Those developments should add pressure on NHTSA to implement stricter safety standards around autonomous and driver-assistance technologies, especially since Tesla is not alone.

Ford's BlueCruise has been involved in fatal crashes that led to a hearing earlier this year, while General Motors' Super Cruise has been subject to recalls and corrective actions, including one over a software glitch that could make its automatic braking too sensitive.