Today, the first U.S. trial related to allegations that Tesla’s (NASDAQ:TSLA) autopilot driver assistant caused a fatality begins in a California state court, according to Reuters.
Importantly, the trial will set a precedent for similar cases across the U.S. The civil lawsuit involves Tesla’s Model 3 vehicle veering off a highway and hitting a palm tree, causing the car to catch fire in a matter of seconds.
Now, the EV company is being accused of selling the car even after knowing that the autopilot feature and other safety systems were defective. Tesla, though, has denied liability and raised doubts over whether the autopilot was engaged during the incident.
Amid regulatory scrutiny, the company has continued improving and rolling out the feature along with the Full Self-Driving (FSD) system. Despite being labeled as autopilot, Tesla maintains and warns drivers that the technology needs monitoring by a human.
With autonomous driving gaining center stage and multiple automakers making investments in the technology, the verdict from the trial in California could have far-reaching consequences.
What is the Target Price for Tesla?
Overall, the Street has a consensus price target of $272.71 on Tesla, alongside a Moderate Buy consensus rating. This points to a 12.4% potential upside in the stock, on top of a nearly 122.5% price gain so far this year.
Read full Disclosure
