Tesla settles FSD crash lawsuit as federal investigations continue
In Brief
9:32 AM PDT · June 26, 2026
Tesla has settled a lawsuit connected to a fatal 2023 crash involving a vehicle using the company’s advanced driver assistance system known as Full Self-Driving.
Bloomberg was first to report on the settlement. Terms were not disclosed.
The lawsuit was filed against Tesla and the driver by the daughter of Johna Story, a 71-year-old woman who was struck by a Tesla Model Y. Story was hit after she stepped out of her own vehicle to direct traffic around a crash that had occurred earlier due to sun glare.
The National Highway Traffic Safety Administration opened an investigation into Tesla’s FSD (Supervised) automated driving software in 2024 after four reported crashes in low visibility conditions — including the one involving Story. NHTSA said, at the time, it was investigating the driver assistance system to find out whether it could “detect and respond...
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