Tesla Settles Lawsuit Over Fatal 2021 Crash Involving Model Y – Alphabet (NASDAQ:GOOG), Alphabet (NASDAQ:GOOGL)

Tesla Inc. TSLA has settled a lawsuit with the estate of 72-year-old Clyde Leach, who was killed in an accident when their Tesla Model Y crashed into an Ohio gas station in 2021.

What Happened: A court filing in San Francisco on Monday revealed that Elon Musk‘s EV giant reached an agreement to settle the lawsuit, which was scheduled to go on trial in April 2026. However, the terms of the settlement weren’t made public, according to Reuters.

The lawsuit claimed that Leach’s Tesla Model Y experienced ‘sudden acceleration’ which led to the vehicle slamming into a gas station pillar. The crash caused the victim blunt force trauma, burns, and other injuries, which led to their death.

Tesla has denied any wrongdoing and claims the Model Y was ‘state-of-the-art’ with no manufacturing defects or design problems, the report says. The company has maintained that the crash occurred due to driver error.

Why It Matters: News of the settlement comes in as Tesla crash victims’ families had written to U.S. Transportation Secretary Sean Duffy in March, urging independent probes into the accidents.

“We are deeply concerned that NHTSA’s oversight of autonomous vehicle systems may be weakened,” the letter stated. The letter also expressed concerns about Musk’s influence within the U.S. government, as the billionaire also heads the DOGE, or Department of Government Efficiency. 

Elsewhere, Tesla has been touting its autonomous driving capabilities, with Musk claiming that a Tesla car will drive itself to people’s houses this year. However, experts have criticized Tesla’s FSD and claim that the system isn’t as advanced as Alphabet Inc.’s GOOG GOOGL Waymo.

FSD is crucial for Tesla as the company plans to roll out its Cybercab ride-hailing services in Austin, Texas. However, Donald Trump‘s tariffs have reportedly caused a disruption to the company’s plans as Cybercab’s production has been affected.

Price Action: TSLA is currently trading at $227.50 on the NASDAQ, according to Benzinga Pro data.

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