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Tesla has settled a lawsuit over a 2023 fatal crash involving a vehicle that used the company’s advanced driver-assistance system known as Full Self-Driving.
It was Bloomberg First to report On settlement. The terms were not disclosed.
The lawsuit against Tesla and the driver was filed by the daughter of Jonah Story, a 71-year-old woman who was struck by a Tesla Model Y. Story was injured after she got out of her own car to direct traffic around an earlier accident caused by sun glare.
The National Highway Traffic Safety Administration opened an investigation into Tesla’s FSD (supervised) automated driving software in 2024 after four crashes were reported in low-visibility conditions — including the one involving Story. At the time, that was the case, NHTSA said Investigate the driver assistance system To see if it can “detect and respond appropriately to low-visibility conditions on the road,” such as “sun glare, fog, or airborne dust.”
That was the investigation promotion In March 2026 to Engineering analysis. In that report, the agency wrote, “Available crash data raise concerns that Tesla’s degradation detection system, as originally deployed and subsequently updated, fails to adequately detect and/or warn the driver under conditions of degraded visibility such as glare and airborne opaque materials.”
While the settlement ends the family’s lawsuit, the upgraded NHTSA investigation has not yet been closed. There are a range of potential outcomes at stake for Tesla in the federal investigation, including a recall.
Federal agency too I opened an investigation to the FSD in October 2025 after receiving reports that the software caused vehicles to run red lights or cross into the wrong lane.
