A United States jury has ruled that Tesla Inc. is partially liable for a fatal 2019 crash involving its Enhanced Autopilot system, ordering the electric vehicle manufacturer to pay $329 million in damages to the family of the deceased and an injured survivor.

The verdict, delivered in the Southern District of Florida, marks a significant blow to Tesla’s autonomous driving ambitions.

The award comprises $129 million in compensatory damages and $200 million in punitive damages, falling just short of the $345 million sought by the plaintiffs’ attorneys.

The trial, which began on July 14, centered on a tragic incident in Key Largo, Florida, where Tesla owner George McGee, driving a Model S sedan, lost control while using the company’s partially automated driving system.

According to court testimony, McGee was distracted while attempting to retrieve a dropped mobile phone, relying on Enhanced Autopilot to brake for obstacles.

The vehicle, traveling at over 60 miles per hour, failed to stop at an intersection, colliding with a parked car and striking its owners.

Naibel Benavides, 22, was killed at the scene, her body found 75 feet from the impact site.

Her boyfriend, Dillon Angulo, survived but sustained severe injuries, including multiple broken bones, a traumatic brain injury, and psychological trauma.

The case has drawn scrutiny to Tesla’s Enhanced Autopilot system and its marketing of semi-autonomous features, raising questions about driver responsibility and the technology’s reliability.

Tesla has not issued a public statement following the verdict but may face further legal and regulatory challenges as autonomous driving systems remain under intense scrutiny.

“Tesla designed Autopilot only for controlled access highways yet deliberately chose not to restrict drivers from using it elsewhere, alongside Elon Musk telling the world Autopilot drove better than humans,” Brett Schreiber, counsel for the plaintiffs, said in an e-mailed statement on Friday. “Tesla’s lies turned our roads into test tracks for their fundamentally flawed technology, putting everyday Americans like Naibel Benavides and Dillon Angulo in harm’s way.”

The verdict comes at a critical time for CEO Elon Musk, who is working to convince investors that Tesla can become a dominant force in autonomous driving and that its self-driving technology is safe enough to support large-scale deployment of robotaxis on U.S. roads.