- Tesla has agreed to settle a lawsuit over a 2018 crash involving Apple engineer Walter Huang.
- Tesla previously argued that Huang misused the system due to playing a video game before the accident.
- The settlement comes amid a series of lawsuits related to the use of its driver-assistant technology.
The California Superior Court was scheduled to begin the case brought by Mr. Huang's family this week. If the trial had proceeded, it would have subjected the firm's Autopilot and Full Self-Driving technology to increased scrutiny.
The terms of the settlement were not disclosed, and reports indicate that the deal still requires approval by a judge. Tesla did not immediately respond to a BBC request for comment.
Before the settlement, Tesla contended that Mr. Huang had misused the system because he was playing a video game just before the accident. The firm previously won trials in California by arguing that drivers involved had not followed its instructions to maintain attention while using the system.
A series of lawsuits over crashes related to the alleged use of its driver-assistant technology confronts the electric vehicle (EV) maker. The US National Highway Traffic Safety Administration has also investigated some accidents involving Autopilot.
For many years, Tesla has promised to produce an autonomous car but has yet to launch one. On Friday, Mr. Musk announced that the company plans to unveil a self-driving robotaxi in August.
The settlement with Mr. Huang's family comes when the company is battling weakening sales. Tesla grappled with a fire at its European factory, global shipping disruption, and growing competition, causing deliveries to slide sharply in the first three months of this year.
In response to increased competition from rivals such as BYD, Tesla has repeatedly cut prices. However, demand in key markets like China has fallen.
Since the start of this year, Tesla's shares have lost almost a third of their value.
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