Tesla has quietly settled the lawsuit brought by the family of a pedestrian killed by a Model Y running “Full Self-Driving,” according to Bloomberg. The terms were not disclosed

NHTSA opened a preliminary evaluation in October 2024 after identifying four FSD crashes in reduced-visibility conditions, including the one that killed Story. In March 2026, the agency upgraded that probe to an Engineering Analysis covering an estimated 3.2 million vehicles — the step that typically precedes a forced recall..

The collision happened on November 28, 2023, on an Arizona highway between Flagstaff and Phoenix. Johna Story, a 71-year-old grandmother, had stepped out of her vehicle to help direct traffic around an earlier accident where drivers’ vision was impaired by sun glare.

Story was then struck and killed by a Tesla Model Y traveling at high speed in FSD mode. Her death is the first pedestrian fatality linked to Tesla’s driving system, and it put a spotlight on exactly what FSD does when its cameras can’t see — glare, fog, or airborne dust.