Tesla settles lawsuit over fatal Full Self-Driving crash

Tesla has settled a lawsuit brought by the family of a pedestrian killed in a 2023 crash involving its Full Self-Driving (FSD) system, a case that triggered a major federal safety investigation. The settlement, the terms of which were not disclosed, resolves litigation over the death of Johna Story, a 71-year-old woman who was struck by a Tesla Model Y on an Arizona highway.

The fatal collision occurred on November 28, 2023, on a highway between Flagstaff and Phoenix. Story had exited her vehicle to help direct traffic around an earlier accident where drivers' vision was impaired by sun glare. She was then hit by a Tesla Model Y traveling at high speed while using the FSD system. Her death is the first known pedestrian fatality linked to Tesla's automated driving technology.

The crash prompted the National Highway Traffic Safety Administration (NHTSA) to open a defect investigation. In October 2024, the agency initiated a preliminary evaluation after identifying four FSD crashes in reduced-visibility conditions, including the Arizona incident. That probe was escalated in March 2026 to an engineering analysis, a step that typically precedes a potential recall, covering an...