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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
What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send your tips to us at tips@teslarati.com.
Wedbush Securities is initiating stock coverage on SpaceX (NASDAQ: SPCX), marking the first comments on the company since it went public several weeks ago. Wedbush and its analyst handling coverage, Dan Ives, are widely bullish on fellow Musk company Tesla (NASDAQ: TSLA).
Ives wrote his first note initiating coverage of SpaceX shares on Wednesday with a $190 price target and an ‘Outperform’ rating. The firm believes the company is well positioned off of its IPO because of its wide array of projects, including AI compute power and infrastructure, connectivity projects, and launches.
“We view SpaceX as one of the most differentiated assets within the tech market with a strong footprint across its three core markets, with Starlink driving success with connectivity,” Ives wrote, “Starship launches leading to a demand flywheel and increasing deal flow for its Colossus clusters.”
Elon Musk called it Epic: The full story of SpaceX’s Starship Flight 12
Wedbush leans heavily on Starlink, which they say is the “profitability driver given the strength of its recurring revenue base of ~12 million subscribers as of June 5th.” Ives believes Starlink is still in the “early innings” of penetrating the global telecommunications and broadband market, as it only holds less than a 1 percent share. However, this number is sure to increase over time.
It also highlights the importance of Starship, which it says is an “essential layer” of SpaceX’s overall success. SpaceX developing and displaying the ability to reuse rockets is a major cost and reliability advantage “as it reduces the necessary hardware launch costs while generating a feedback loop for future flights to improve their launch flight rate without accelerating capex spend.”
Finally, SpaceX’s recent AI/Compute projects are also very elementary, Ives writes. It is worth mentioning Wedbush said its $190 price target is derived from a valuation forecast that sees the company yielding roughly $2.48 trillion of implied enterprise value.
There are also some factors that Wedbush did not take into account with its initial coverage. The firm wrote in the note:
“We note that there is optional value coming from Starship’s accelerating scale towards sub-$200/kg unit economics, orbital data centers, and enterprise AI monetization as these factors could drive meaningful upside but these face major hurdles, so we do not take that into account with our valuation.”
SpaceX shares are down just over 2 percent today, trading at around $167 at the time of publication.
Tesla has expanded the footprint of a massive safety feature worldwide with a recent Software Update labeled as 2026.20.6. The expansion of the “Blind Spot Warning While Parked” feature represents the more widespread availability of the feature, which aims to prevent “dooring.”
Dooring is when a driver or passenger opens a car door into the path of an oncoming road user, usually a cyclist or motorcyclist. It is among the most common types of cycling accidents, the League of American Bicyclists says.
For this reason, Tesla created a feature that warns occupants not to open the door because an object is approaching. The feature will sound a chime, and it will also delay the opening of the door to prevent an incident.
The release notes state (via Not a Tesla App):
“If you attempt to open a door while an approaching object is detected in your blind spot (for example, a bicyclist approaching from behind) a chime sounds, and your door will not open upon initial button press. Wait a short time and press the button a second time to override the warning.”
Tesla initially rolled out this feature back in 2024 with the Model 3 “Highland.” However, it remained with the Model 3 exclusively for over a year; that was until Tesla added it to the Cybertruck this past Spring.
Now, it is making its way to the new Model Y, 2021 and newer Model S, and 2021 or newer Model X.
The prevention of dooring incidents could eliminate many injuries to cyclists, especially in an urban setting. Dooring accounts for 10-20 percent of bike-related crashes in major cities, and over 17,000 dooring-related incidents were treated in the U.S. over the course of a decade. These usually involve fractures, contusions, and head trauma.
Tesla confirmed this morning that it has sent the first production units, manufactured with no steering wheel or pedals, to on-road testing in Austin, sharing video of the first rides with no human controls.
The lack of steering wheels and pedals in the Cybercab aligns with Tesla’s self-certification of Robotaxi as Level 4 SAE, a platform it plans to make widespread through internal vehicles and customer-owned cars that will operate and generate revenue for individuals.
The start of these engineering tests is a major signal for Tesla, which plans to bring driverless, wheel-less, and pedal-less Cybercabs to market in the coming months. With production already well underway at Gigafactory Texas, where the Cybercab is built, there is some inclination to believe the first public rides could happen sooner rather than later.
Engineering tests of the first production Cybercab have begun in Austin pic.twitter.com/fk3KQvcE8a
— Tesla (@Tesla) June 30, 2026
Tesla’s engineering tests will put the Cybercab in real-world scenarios, testing not only the hardware, but more importantly, the software that drives the car around Austin with nobody supervising it within the car.
This is perhaps the biggest part of the internal testing process, especially prior to allowing regular, everyday people to hail the Cybercab for an autonomous ride. These early rides serve as a true benchmark for Tesla: How many rides can it achieve safely? How many miles did it travel consecutively without needing an intervention? What scenarios challenge the Full Self-Driving suite the most?
The proper precautions have already been put into place as well, as Tesla released the First Responders Guide to Cybercab over the weekend, ensuring that emergency services have 24/7 access to Robotaxi Assistance, as well as other boundaries, such as Geofencing features that can be used to redirect autonomous vehicle traffic due to accidents, road closures, construction, or maintenance.
Cybercab seems genuinely close to being added to the Robotaxi fleet in Austin, but Tesla has prioritized safety throughout this entire process. Therefore, we think it could be months before it truly starts giving rides to the public. People have been frustrated with this, but Robotaxi in Austin has a tremendous safety record so far, so the slow rollout has kept people safe and accidents to a minimum.
The most important thing is that Tesla continues to show consistent progress in the Cybercab’s ramp-up toward fleet addition. A few weeks back, we saw the EPA reward the Cybercab a Certificate of Conformity, allowing it to enter the stream of commerce. Then, we saw Tesla add decals, signaling that it was likely about to start testing it publicly. That has now happened.
The next big move will be the announcement of the first rides, so this Summer should be filled with anticipation.
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