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Tesla argues human error caused fatal 2019 crash, not Autopilot: report
Tesla now faces the jury’s verdict in a trial alleging that Autopilot caused a fatality, and the trial is expected to set a precedent for future cases surrounding advanced driver assistance systems (ADAS). During closing arguments on Tuesday, an attorney for the plaintiffs pointed to an analysis Tesla conducted two years before the accident, claiming that the automaker knowingly sold the Model 3 with a safety issue related to its steering.
The trial began in California late last month after a 2019 incident in which 37-year-old Micah Lee veered off a highway outside Los Angeles at 65 miles per hour, suddenly striking a palm tree before the vehicle burst into flames. According to court documents, the crash killed Lee and injured both of his passengers, one of whom was an 8-year-old boy.
Lee’s passengers and estate initiated a civil lawsuit against Tesla, alleging that the company knew that Autopilot and its other safety systems were defective when it sold the Model 3.
Tesla has denied any liability in the accident, claiming that Lee had consumed alcohol before getting behind the wheel and saying it could not detect if Autopilot was engaged at the time of the crash.
This and other trials come as regulatory requirements for ADAS suites are just emerging, and the cases are expected to help navigate future court cases related to accidents with the systems.
According to Reuters, the attorney for the plaintiffs, Jonathan Michaels, showed the jury an internal safety analysis from Tesla in 2017 during closing arguments, in which employees identified “incorrect steering command” as a potential safety issue. Michaels said the issue involved an “excessive” steering wheel angle, arguing that Tesla was aware of related safety problems before selling the Model 3.
“They predicted this was going to happen. They knew about it. They named it,” Michaels said.
Michaels also said that Tesla created a specific protocol to deal with affected customers and that the company instructed workers to avoid accepting liability for the issue. Michaels also echoed prior arguments, saying that Tesla knew it was releasing Autopilot in an experimental state, though it needed to do so to boost market share.
“They had no regard for the loss of life,” Michaels added.
Michael Carey, Tesla’s attorney, said that the 2017 analysis wasn’t meant to identify the defect but instead was meant to help avoid any potential safety issues that could theoretically occur. Carey also said that Tesla developed a system to prevent Autopilot from making the same turn that had caused the crash.
Carey said that the subsequent development of the safety system “is a brick wall standing in the way of plaintiffs’ claim,” adding that there haven’t been any other cases where a Tesla has maneuvered the way that Lee’s did.
Instead, Carey argued to the jury that the crash’s simplest explanation was human error, asking jurors to avoid awarding damages on behalf of the severe injuries encountered by the victims.
“Empathy is a real thing, we’re not saying its not,” Carey argued. “But it does not make cars defective.”
Earlier this month, a federal judge in California ruled in Tesla’s favor in a similar case looking at whether the automaker misled consumers about its Autopilot system’s capabilities. In that case, which had the chance to become a class-action lawsuit, the judge ruled that most of the involved plaintiffs had signed an arbitration clause when purchasing the vehicle, requiring the claims to be settled outside of court.
The cases are expected to set precedents in court for future trials involving Tesla’s Autopilot and Full Self-Driving (FSD) beta systems and the degree of the automaker’s responsibility in accidents related to their engagement. Tesla is also facing additional information requests from the U.S. Department of Justice related to its Autopilot and FSD beta.
Tesla has received more requests regarding Autopilot and FSD from DOJ
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President Donald Trump unveiled an upgraded Boeing 747-8 at Joint Base Andrews on June 19, 2026, describing the Qatar-gifted aircraft as an interim Air Force One equipped with advanced communications systems, including Starlink, Elon Musk’s SpaceX satellite internet service.
The plane, valued at around $400 million and modified for presidential use, serves as a bridge until the delayed VC-25B replacements arrive. Trump highlighted its luxury features and new technology during remarks to service members.
Trump stated:
“We have communication equipment up there that nobody’s ever seen before. It’s the highest level and, uh, including Starlink. My friend Elon is going to be very happy, but, uh, Starlink and we have, uh, four or five different sets of double and triple communications like people haven’t seen.”
He added:
“And it represents what can happen with hard work, innovation, and aggressive timelines because we did this quickly and yet there’s never been communication like is on this plane.”
🚨 President Trump confirmed today that the new Air Force One is equipped with Starlink:
“We have communication equipment up there that nobody’s ever seen before, it’s the highest level and including Starlink…my friend Elon is going to be very happy.” pic.twitter.com/IhkDmtr5hL
— TESLARATI (@Teslarati) June 20, 2026
The aircraft features a redesigned red, white, and blue livery and has been outfitted with Starlink satellite connectivity alongside other secure systems.
Trump praised the plane’s uniqueness, calling it among the world’s most luxurious. The gift from Qatar and subsequent modifications have drawn attention, with the jet positioned as a solution for presidential travel. It is expected to support operations, including potential ceremonial roles such as Fourth of July flyovers.
The event marked the formal introduction of the converted jet, which will help maintain capabilities while the primary Air Force One fleet undergoes modernization. Defense observers note the inclusion of commercial satellite technology like Starlink as part of efforts to ensure resilient communications, crucial to keep the country running as the President is in the sky.
President Trump’s comments underscored appreciation for rapid upgrades and innovation in equipping the aircraft. The plane remains a U.S. government asset and is slated for eventual transfer related to presidential library purposes after its service.
Tesla just gave what is perhaps its biggest signal yet that the launch of the Cybercab, its autonomous ride-hailing-geared car, is imminent.
The Cybercab has been spotted outside of Gigafactory Texas in massive numbers over the past few days, with hundreds of units being stored on property just days after the vehicle received a Certificate of Conformity from the EPA.
Today, things were a bit different.
Cybercabs spotted on Giga Texas property today had an addition: a Cybercab decal on the side, reminiscent of the “Robotaxi” ones that were placed on Model Ys just as the company launched its ride-sharing platform about a year ago.
Giga Texas drone operator Joe Tegtmeyer noticed the change today:
Tesla Cybercabs are now getting “Cybercab” logos on the side of them!
Tesla did the same with Model Ys that were given “Robotaxi” logos: https://t.co/DanANtw1m7 pic.twitter.com/FqOhH0S9Ks
— TESLARATI (@Teslarati) June 19, 2026
Tesla could be signaling that the Cybercab is preparing to enter the Robotaxi fleet in the coming weeks or months with this move. It seems more symbolic than anything; Tesla is ready to throw Cybercabs in the ride-hailing platform just as it did with Model Ys last year.
The addition of the Certificate of Conformity awarded to the Cybercab is another major factor working to Tesla’s advantage. The company now has permission from the EPA to allow the vehicle to operate on public roads and enter the chain of commerce. It’s officially street legal.
Tesla Cybercab specs revealed: range, curb weight, range ratings, and more
The big question that remains is whether Tesla will be able to operate the car without a safety monitor, especially considering it plans to put the car out there without a steering wheel or pedals. With the Cybercab only having a seating capacity of two, it is hard to believe Tesla will even consider putting a Safety Monitor in the car.
It did recently self-certify as Level 4 and has the ability to operate driverless vehicles in the State of Texas under a law that took effect on May 28. You can read more about that here:
Tesla’s Robotaxi dreams just took a massive step toward reality
We’d imagine Cybercabs will be on the roads as soon as July, but August will likely be a better estimate of when the car will be entered into the Cybercab fleet. It all depends at where Tesla is, as they’ve truly prioritized safety with the rollout of the Robotaxi platform.
Elon Musk has publicly questioned Moody’s credit assessments following the rating agency’s decision to assign SpaceX a Baa1 investment-grade rating, two notches above Tesla’s Baa3. The comments came amid discussions comparing the two companies’ financial profiles.
SpaceX earned its first-time Baa1 rating with a stable outlook from Moody’s. The agency highlighted the company’s leadership in orbital launches, the growing recurring revenue from its Starlink satellite network, strong vertical integration, U.S. government contracts, and emerging opportunities in AI infrastructure.
These factors were cited as supporting robust cash flows, margin expansion, and financial flexibility.
Musk responded directly: “Tesla’s credit rating is ridiculously low tbh,” and added, “Yeah, makes no sense. Tesla has over $40B in cash, no debt, and is consistently profitable!” His remarks underscored Tesla’s balance sheet strength and profitability at a time when many traditional automakers continue to report losses in the shift to electric vehicles.
Yeah, makes no sense.
Tesla has over $40B in cash, no debt and is consistently profitable!
— Elon Musk (@elonmusk) June 19, 2026
Tesla maintains a leading position in the global EV market, with diversification into energy and storage, battery technology, and robotics through projects like Optimus. Recent financial updates show the company generated positive free cash flow of $1.4 billion in Q1 2026, supported by operating cash flow of $3.9 billion. Cash and short-term investments stood at approximately $44.7 billion.
Moody’s has affirmed Tesla’s Baa3 issuer rating with a stable outlook in periodic reviews, acknowledging the company’s EV leadership, technology strengths, including AI for autonomous vehicles, solid profitability, and strong liquidity.
Tesla (TSLA) scores Baa3 Moody’s rating for ‘stable’ outlook
However, the agency has also noted challenges in the automotive segment and expectations for margin pressures.
Musk’s critique highlights a common debate about how traditional rating methodologies apply to high-growth, capital-intensive technology companies. SpaceX benefits from long-term government-backed contracts and diversified, recurring revenue streams, while Tesla’s valuation reflects heavy investment in future technologies such as autonomy and robotics.
Both ratings remain investment-grade, yet the one-notch difference has fueled online discussion about potential inconsistencies in evaluating innovative firms.
The exchange comes as SpaceX explores financing options following its recent valuation milestones, while Tesla continues executing on its multi-year roadmap. Musk’s pointed response serves as a reminder that credit ratings, though influential for borrowing costs, represent one lens through which markets assess corporate strength—and that company leaders often view their financial positions through the lens of long-term innovation and cash generation rather than short-term risk metrics alone.
President Trump touts new Air Force One with Musk technology
Tesla Cybercab launch is imminent after latest sighting at Giga Texas
