Tesla Sued After Woman Was Killed by Car Crashing Into House

Tesla is facing a lawsuit in Texas after a 76-year-old woman, Martha Avila, was killed when a Model 3 crashed into her home near Houston. The lawsuit alleges that the driver-assistance system failed to detect the end of the road and stop before slamming into the house. However, Tesla’s head of AI, Ashok Elluswamy, claims that the driver-assistance system was not engaged at the time of the crash. The National Highway Traffic Safety Administration (NHTSA) has opened a special investigation into the incident. The lawsuit also includes a claim of deceptive marketing against Tesla and accuses both the company and the driver of negligence. This is not the first time Tesla has faced litigation over its automated driving technology, with over a dozen lawsuits blaming defective technology for fatal crashes. The company has reached confidential settlements in several cases and prevailed in two California trials in 2023, but was found partially responsible for a fatal collision in 2025 and was imposed $200 million in punitive damages.