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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.
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Tesla’s AI Chief just hinted at something big for FSD v14 lite owners
Tesla’s AI chief suggests the newest FSD v14 Lite build may finally go wide release.
Tesla’s head of AI, Ashok Elluswamy, noted on Sunday that the newest FSD v14 Lite build rolling out to Hardware 3 cars is likely the version that goes to wide release, the strongest signal yet that Tesla is near to closing out an early access phase that Hardware 3 owners have waited more than a year for.
Elluswamy made the comment in response to an extensive review from Tesla owner Zack, known on X as @BLKMDL3, who tested software version 2026.20.6.10 and detailed the changes in a lengthy post. “FSD v14 Lite (for Tesla AI3 hardware vehicles) review.
The update restarts a rollout that had stalled after its initial release. Tesla began pushing FSD v14 Lite to Hardware 3 early access drivers on June 29, bringing driving behavior learned on the newer Hardware 4 computer down to the more limited chip that has powered Tesla vehicles built between 2019 and early 2023. That release, as we covered in detail, gave roughly 4 million HW3 vehicles their first meaningful update since being frozen on version 12.6 in early 2025.
Tesla Full Self-Driving v14 ‘Lite’ Release Notes: new capabilities and features
The latest build adds features that bring Hardware 3 closer in line with what Hardware 4 owners already have. FSD can now start directly from park without a brake pedal confirmation, a change Zack called a small but meaningful quality of life improvement. The interface also picks up the blue “P” park icon, approaching destination alerts, and a dedicated Self-Driving app with streak tracking, all details previously exclusive to the AI4 branch of v14, as outlined in Tesla’s original release notes.
The stakes around Hardware 3 go beyond software polish. Tesla sold the Full Self-Driving package for years on the promise that every vehicle equipped with it had the hardware needed to eventually drive itself without supervision. That promise broke down during Tesla’s Q1 2026 earnings call, when Musk acknowledged HW3 cars could not run unsupervised FSD, prompting Tesla to offer trade-in discounts and hardware retrofits alongside the Lite software track.
Tesla confirmed HW3 can’t do Unsupervised FSD but there’s more to the story
Tesla has continued to frame v14 Lite as the primary path forward for the HW3 fleet, telling owners in April that international markets would follow the U.S. rollout once regulatory approvals came through. For now, HW3 owners in the early access group are the only ones running the new build. A broader rollout would mark the second major software delivery to the legacy fleet since Tesla first released FSD v14 to Hardware 4 vehicles, and the first sign since June that the Lite program is still moving rather than stuck in early access limbo.
In a pointed message on X, Elon Musk warned that firms maintaining significant short positions in SpaceX over time face “very low” survival probability.
The statement comes amid post-IPO volatility for the rocket company, now trading under the ticker $SPCX.
The survival probability of firms who maintain a significant short position in SpaceX over time is very low
— Elon Musk (@elonmusk) July 17, 2026
Five weeks after what was described as the largest IPO in history, the stock had fallen roughly 30% from its peak above $2.6 trillion, briefly surpassing Microsoft and Amazon in market value. Short sellers celebrated gains of about $8.7 billion, but Musk’s reply underscores his long-term conviction.
The warning directly echoes a detailed bullish analysis arguing that Starship’s cost reductions could unlock a multi-trillion-dollar space economy. Projects ranging from solar power beamed from orbit and asteroid mining to orbital data centers and Mars terraforming were projected to create over $100 trillion in new market capitalization.
In this vision, SpaceX acts as the essential infrastructure provider, akin to AWS for cloud computing, capturing monopoly-like revenues from launches, crew transport, and data traffic across a rapidly expanding frontier.
This is far from the first time Musk has targeted short sellers. With Tesla, he has repeatedly framed persistent bears as destined for major losses. In July 2024, Musk declared that once Tesla achieves full autonomy and volume production of Optimus robots, “anyone still holding a short position will be obliterated. Even Gates,” referencing Microsoft co-founder Bill Gates’ reported short bets.
Elon Musk reveals what Tesla stock surge could do to Bill Gates
Earlier, in 2018, he taunted shorts that they had “about three weeks before their short position explodes,” a remark followed by sharp stock gains. Musk has also called short selling “value destroying” and once suggested it “should be illegal,” viewing it as betting against innovation and progress.
Critics often dismiss Musk’s optimism as hype, especially when near-term metrics like quarterly deliveries or stock fluctuations disappoint.
Yet his pattern remains consistent: framing short positions against his companies as fundamentally misjudging exponential technological leaps. For SpaceX shorts, the message is clear: betting against multi-planetary ambitions and the infrastructure monopoly they enable carries existential risk for the firms involved.
As Musk and supporters see it, the space economy’s upside dwarfs Earth-bound valuation models, making today’s dips temporary in a decades-long ascent.
Tesla has evidently revealed which of its vehicle models will be the first to receive Starlink integration: the Cybercab.
Tesla’s Santana Row showroom now has a full-fledged display of the Cybercab, with an extensive bit of information hung around an exhibit that seems to reveal the vehicle’s newest feature: an integrated Starlink antenna that will enable secure and reliable internet access during trips.
Credit: @Starscream_SJC | X
Cybercab is geared toward autonomous ride-hailing for one or two passengers. The production units rolling off the lines at Gigafactory Texas are built without steering wheels or pedals, meaning when public rides begin, passengers will not need to interact with a human being or control the vehicle in any way outside of what appears on the center screen for their entertainment during the ride.
Tesla Santana Row will be reopening tomorrow with a full focus on self-driving. Everything in the showroom is about Robotaxi and Cybercab with stats and information about the technology. The Cybercab on display is the production model. pic.twitter.com/yIUYdOGFOp
— Shaun Cassidy (@Starscream_SJC) July 20, 2026
Along the display, Tesla wrote this message about Cybercab:
“Cybercab is built for autonomy. It has no steering wheel, no side mirrors, and no pedals. It goes where you tell it to go and how you want it to, so you can relax along the way. It is hyper aware and responsive to your surroundings, monitoring other drivers, responding to emergency vehicles, utilizing its expertise in the rarest scenarios to help keep you safe.”
Tesla has been teasing a potential Starlink integration for quite some time now. In December, the company hinted at potential Starlink internet terminal integration within its vehicles in a patent that described a vehicle roof assembly with integrated radio frequency (RF) transparency.
The company wrote in its patent application that a new roof design built with materials that differ from the standard metallic or glass elements used in today’s cars would allow it to integrate modern vehicular technologies, in particular, ones that require radio frequency transmission and reception.
Tesla suggested high-strength polymer blends, like Polycarbonate, Acrylonitrile Butadiene Styrene, or Acrylonitrile Styrene Acrylate.
This is the first time we’ve seen Tesla officially confirm the Starlink integration into the Cybercab. It’s not much of a surprise considering the company’s intention behind the Cybercab, which is to make travel autonomous.
Productivity will now be at a maximum during a work-related commute, while the center screen could be utilized for Netflix or potentially even live TV for those who are heading to dinner or to a fun activity.
Tesla’s AI Chief just hinted at something big for FSD v14 lite owners
Elon Musk sends first warning to SpaceX short sellers
