A Florida court has ordered Tesla to pay a record $329 million penalty for a fatal 2019 Autopilot crash, marking a rare legal defeat for the company. The jury found Tesla partially liable, arguing its driver-assistance system was improperly marketed for roads beyond its designed scope—a factor in the high-speed collision that killed a 22-year-old passenger. Meanwhile, Moody’s warned of shrinking operating margins, projecting a decline to below 8% by 2026 due to weakening European demand, expiring U.S. tax incentives, and fierce price competition in China.
Market Pressures Mount
Tesla’s European registrations plummeted 48.5% in Portugal and 35% year-to-date in Italy, starkly underperforming the broader EV market’s growth. The stock’s downward trend worsened as it breached a key technical support level, contrasting with peers benefiting from AI-driven rallies. Adding to woes, Tesla’s Robotaxi ambitions face scrutiny after footage showed software glitches during autonomous tests, forcing reliance on human drivers. While a $4.3 billion battery deal with LG Energy offers a bright spot, the dual legal and demand crises threaten investor confidence in Musk’s vision.