Tesla settles Arizona fatal Full Self‑Driving lawsuit

Tesla reached a settlement in a wrongful‑death lawsuit tied to the November 28 2023 crash that killed 71‑year‑old Johna Story in Mesa, Arizona. Story stepped out of her vehicle to direct traffic around an earlier collision in bright sun glare, and a Tesla Model Y operating in Full Self‑Driving (FSD) mode struck her. Settlement terms were not disclosed.

The case comes as the U.S. National Highway Traffic Safety Administration (NHTSA) has broadened its probe of Tesla’s FSD system. An initial evaluation began in October 2024, and an engineering analysis launched in March 2026 now covers about 3.2 million vehicles from 2016‑2024 model years, encompassing nine incidents—including this fatality—where the system may have failed in low‑visibility conditions such as glare, fog or dust. Tesla has updated camera hardware and added stricter visibility safeguards, though the impact of those changes appears limited.

Tesla also faces other legal pressures, notably a 2025 Florida jury verdict that found the company partly liable for a separate fatal Autopilot crash, awarding $243 million in damages, which Tesla plans to appeal. Ongoing regulatory scrutiny in the United States and Europe continues to focus on the safety and transparency of Tesla’s autonomous‑driving technology.