In February 2023, a tragic incident occurred when a Tesla Model S, operating on Autopilot mode, collided with a roadside fire truck. This resulted in the unfortunate death of the driver and inflicted severe injuries upon his brother. In the wake of this fatal accident, Tesla has successfully negotiated a confidential settlement in the ensuing lawsuit, thus steering clear of a jury trial.

The legal team representing the plaintiffs contended that Tesla's offerings were flawed and that the company had misled consumers by branding the system as 'Autopilot' and through public pronouncements made by Musk. The judge overseeing the case had earlier determined that the term 'Autopilot' was indeed misleading and that Musk's public remarks could give rise to legal action. This development led Tesla to pursue a settlement strategy. This tactic is consistent with Tesla's prior handling of analogous lawsuits. Notably, only one Autopilot-related fatality case, which took place in Florida in 2019, proceeded to a jury trial, culminating in a significant damages award. At present, Tesla is confronted with lawsuit claims totaling up to $14.5 billion pertaining to Autopilot and Full Self-Driving (FSD) technologies.