Piper plays down significance of Tesla Autopilot case in Florida

Investing.com -- Piper Sandler said in a note Monday that investors should not overreact to headlines surrounding Tesla’s recent Autopilot-related jury verdict in Florida, calling the case less material than it seems.

“In our years covering TSLA, we’ve learned to ignore headlines related to Autopilot liability,” Piper Sandler wrote. “But the robotaxi roll-out has breathed new life into this topic, and we feel compelled to comment on recent media intrigue.”

Last Friday, a Florida jury found Tesla (NASDAQ: TSLA) partially liable for a 2019 crash. “Headlines began proliferating, referring to a ‘stunning rebuke,’ a ‘massive blow,’ and a $243M obligation,” Piper Sandler said.

However, the firm believes “Tesla will not likely be required to pay anything close to $243M in damages.”

Of that figure, $200 million was punitive damages, which Piper believes “will likely be overturned” on appeal, as “Florida doesn’t typically consider punitive damages in product liability cases.”

Importantly, Piper emphasized that the vehicle involved was running 2018 software and that modern FSD differs considerably.

The firm added, “This case does not have direct implications for Tesla’s FSD rollout.”

Piper explained that the original accident had already been settled, and the driver, who was reportedly searching for a phone and pressing the accelerator, had admitted fault.

“After the settlement, opportunistic litigators identified Tesla as a ripe target for a suit,” Piper wrote. “Though Autopilot was engaged, pressing the accelerator over-rides the system.”

While acknowledging that jury trials can carry anti-corporate sentiment, especially given Tesla’s and CEO Elon Musk’s public profiles, Piper concluded: “We don’t think shareholders should be losing sleep over this.”

Piper maintains its Overweight rating on Tesla.

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