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Tesla has settled a lawsuit connected to a fatal 2023 crash involving a vehicle using the company\u2019s advanced driver assistance system known as Full Self-Driving.<\/p>\n
Bloomberg was first to report<\/a> on the settlement. Terms were not disclosed.<\/p>\n 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.<\/p>\n The National Highway Traffic Safety Administration opened an investigation into Tesla\u2019s FSD (Supervised) automated driving software in 2024 after four reported crashes in low visibility conditions \u2014 including the one involving Story. NHTSA said, at the time, it was investigating the driver assistance system <\/a>to find out whether it could \u201cdetect and respond appropriately to reduced roadway visibility conditions,\u201d such as \u201csun glare, fog, or airborne dust.\u201d\u00a0<\/p>\n That investigation was upgraded<\/a> in March 2026 to an engineering analysis<\/a>. In that report, the agency wrote \u201cAvailable incident data raise concerns that Tesla\u2019s degradation detection system, both as originally deployed and later updated, fails to detect and\/or warn the driver appropriately under degraded visibility conditions such as glare and airborne obscurants.\u201d<\/p>\n While the settlement ends the family\u2019s lawsuit, this upgraded NHTSA investigation has not yet been closed. At stake for Tesla for the federal investigation is a host of possible outcomes, including a recall.<\/p>\n The federal agency also opened an investigation<\/a> into FSD in October 2025 after receiving reports the software caused the vehicles to run red lights or cross into the wrong lane. <\/p>\n<\/div>\n