Tesla, the prominent electric car manufacturer, has reached an agreement to resolve a lawsuit stemming from a 2018 crash that resulted in the death of Walter Huang, an engineer at Apple.

The incident occurred when Huang's Tesla Model X, operating under Autopilot, collided with a highway barrier. Originally set to commence this week, the lawsuit, filed by Huang's family, was slated for the California Superior Court.

Had the trial proceeded, it would have drawn heightened attention to Tesla's Autopilot and Full Self-Driving technology, subjecting the company to increased scrutiny.

The specifics of the settlement remain undisclosed, with reports indicating that judicial approval is pending. Tesla has yet to respond to a request for comment from the BBC.

Prior to the settlement, Tesla contended that Huang had misused the system, alleging that he was engaged in playing a video game immediately before the accident.

This stance aligns with Tesla's previous successful defenses in California trials, where it argued that drivers failed to adhere to instructions to maintain vigilance while utilizing the system.

Facing a slew of lawsuits related to accidents purportedly involving its driver-assistance technology, Tesla also finds itself under investigation by the US National Highway Traffic Safety Administration for several Autopilot-related incidents.

Despite longstanding promises to introduce an autonomous vehicle, Tesla has yet to bring one to market. Elon Musk, Tesla's CEO, recently announced plans to unveil a self-driving robotaxi in August.

The resolution of the lawsuit with Huang's family coincides with a challenging period for Tesla, marked by declining sales. Deliveries plummeted in the first quarter of the year due to various factors, including a fire at its European factory, disruptions in global shipping, and intensified competition.

Tesla has cut prices repeatedly in response to increased competition from rivals such as BYD but demand in key markets like China has fallen.

Tesla's shares have lost almost a third of their value since the start of this year.

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