The US government has opened a second federal investigation into a recent Tesla crash that reportedly involved driver-assistance technology, struck a Texas home, and killed a resident. The National Transportation Safety Board (NTSB) announced on Wednesday it was launching an investigation into the 19 June crash that killed 76-year-old Martha Avila in the Houston suburb of Katy. This came two days after the National Highway Traffic Safety Administration (NHTSA) said it was also investigating the crash.
Lawsuit Filed Against Tesla
Lawyers for Avila’s family filed a civil complaint on Tuesday, arguing that Tesla should be held liable for her wrongful death. The plaintiffs alleged gross negligence and failure to warn that the “autopilot” and “full self-driving” systems of the Tesla Model 3 involved were defective. Avila’s daughter, Jennifer Barbour, and her husband, Justin Barbour, stated that the driver, Michael Butler, told law enforcement he engaged autopilot before crashing through the front wall of Avila’s home, fatally pinning her. She died later at a nearby hospital. Justin Barbour was also injured in the crash.
Details of the Crash and Investigation
The lawsuit, filed in Texas state court, seeks more than $1 million in damages, along with punitive damages reflecting Tesla’s alleged “reckless disregard for a substantial risk of severe bodily injury.” The Harris County Sheriff’s Department confirmed that the driver described using a driver-assistance system at the time of the wreck. Tesla and Elon Musk did not immediately respond to requests for comment. However, Musk defended Tesla on X, writing, “FSD drives slowly through neighborhood streets and this was a high speed crash!” Tesla’s vice-president of artificial intelligence software, Ashok Elluswamy, posted that “the driver manually overrode self-driving by pressing the accelerator all the way to 100% of the accel pedal in this residential area.”
Background of Federal Inquiries into Tesla
Federal regulators have been increasing inquiries into Tesla. Since 2016, the NHTSA has opened nearly 50 special investigations into Tesla crashes believed to involve advanced driver-assistance systems, with about two dozen deaths reported. In March, the NHTSA escalated its investigation into 3.2 million Teslas equipped with full self-driving, citing concerns that the system may fail to detect or warn drivers in poor visibility. In 2023, Tesla recalled about 2 million cars—nearly all its electric vehicles on US roads—to better ensure driver attention when using autopilot. Tesla has stated that autopilot enables vehicles to steer, accelerate, and brake within their lanes, while full self-driving lets vehicles obey traffic signals and change lanes, both requiring “fully attentive” drivers with hands on the wheel.
Impact on Tesla and Stock Performance
Tesla stock fell sharply in early 2025 as car sales plunged amid a boycott of Musk after his involvement in US federal politics, including leading the Trump administration’s budget-cutting “department of government efficiency” initiative and embracing extremist political candidates in Europe. The Barbours’ lawsuit also names Butler as a defendant. It is unclear whether he has a lawyer. Efforts to reach him were not immediately successful. The Barbours’ lawyers did not respond to requests for additional comment.
