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Tesla reached a settlement in a lawsuit that accused the company’s driver-assistance software of being responsible for the death of a California man in 2018. The lawsuit involved the death of Wei Lun Huang, also known as Walter, an Apple engineer, and was set to go to trial with jury selection scheduled for Monday. The settlement avoided a trial that would have put Tesla’s Autopilot software under close scrutiny and increased the debate over the safety of autonomous driving technology.

The terms of the settlement with Mr. Huang’s family were not disclosed, and Tesla filed court documents to prevent details of the agreement from being made public. The lawsuit alleged defects in the Autopilot system, claiming it lacked technology to prevent the crash that resulted in Mr. Huang’s death. It also sought damages from the state of California, stating that a concrete median barrier on the highway failed to absorb the impact of the collision as intended.

Elon Musk, Tesla’s CEO, has made bold claims about the company’s self-driving technology, predicting it will generate significant revenue and help justify the company’s high valuation. Despite recent stock market fluctuations, Tesla remains the most valuable automaker. Musk announced plans to introduce a self-driving taxi, Robotaxi, in August. This development would address criticisms that Tesla has been slow to release new products following the success of the Model 3 sedan and Model Y SUV.

The National Transportation Safety Board conducted an investigation into the 2018 crash and attributed blame to both Tesla and Mr. Huang. The agency found that the Autopilot system did not keep the vehicle in its lane and failed to detect the highway barrier. It also suggested that Mr. Huang may have been distracted at the time of the accident. Tesla’s Autopilot and Full Self-Driving systems are not fully autonomous, requiring drivers to remain engaged and ready to intervene.

Tesla’s legal filings indicated that they settled the lawsuit to bring an end to years of litigation. The company planned to present testimony suggesting that Mr. Huang had been playing a video game on his phone when the crash occurred, a claim denied by the family’s lawyers. In response to pressure from U.S. regulators, Tesla recalled over two million vehicles in December for a software update to improve driver attentiveness when using the Autopilot system.

The settlement of the lawsuit avoids further public scrutiny of Tesla’s autonomous driving technology but does not fully resolve the ongoing debate over the safety and effectiveness of such systems. As Tesla continues to innovate and expand its product offerings, the company faces challenges related to regulatory compliance, public perception, and customer safety. The outcome of this lawsuit underscores the complexities and controversies surrounding the development and implementation of self-driving technology in the automotive industry.

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