Electric car manufacturer Tesla has reached a settlement in a lawsuit involving a fatal crash that occurred in 2018.
The crash, which resulted in the death of Apple engineer Walter Huang, occurred when his Model X vehicle, operating on Autopilot, collided with a highway barrier.
The lawsuit, brought by Mr. Huang’s family, was set to begin trial in the California Superior Court this week. Had the trial proceeded, it would have shed light on Tesla’s Autopilot and Full Self-Driving technology.
The terms of the settlement have not been disclosed, and the agreement is pending approval from a judge. Tesla has not yet commented on the matter.
Prior to the settlement, Tesla argued that Mr. Huang had misused the Autopilot system by playing a video game just before the accident. The company has previously won cases in California by asserting that drivers failed to adhere to its instructions to maintain focus while using the system.
Tesla is facing multiple lawsuits related to accidents involving its driver-assistant technology, with the US National Highway Traffic Safety Administration also investigating some incidents involving Autopilot.
Despite its promise to develop an autonomous vehicle, Tesla has yet to launch one. CEO Elon Musk announced plans to reveal a self-driving robotaxi in August.
The settlement with Mr. Huang’s family comes at a time when Tesla is grappling with declining sales. Deliveries dropped significantly in the first quarter of this year due to a fire at its European factory, global shipping disruptions, and increased competition.
In response to competition from companies like BYD, Tesla has slashed prices multiple times, but demand in key markets such as China has slumped. As a result, Tesla’s shares have fallen by nearly a third since the beginning of the year.
