Tesla sued in Texas after fatal Model 3 crash

A Texas wrongful‑death lawsuit accuses Tesla of design flaws in its Full Self‑Driving (FSD) system after a fatal crash on June 19, 2026. The incident occurred when a Tesla Model 3 driven by Michael Butler struck a two‑storey home in Katy, killing 76‑year‑old Martha Avila and injuring her son‑in‑law. The family is seeking more than $1 million, alleging that the vehicle failed to detect the house, did not warn the driver, and that Tesla was aware of safety risks associated with its advanced driver‑assistance technologies.

Tesla’s defense states the driver had taken back steering control before impact and that FSD, despite its name, requires constant driver attention and is not fully autonomous. Elon Musk and Tesla AI chief Ashok Elluswamy have said the system was not active at the high speed (about 73 mph) of the crash. The Harris County Sheriff’s Office reported no evidence of driver impairment. The National Highway Traffic Safety Administration has opened a separate investigation, adding to ongoing scrutiny of Tesla’s Autopilot and FSD after prior lawsuits, including a 2019 case that resulted in a $243 million verdict against the company.