Tesla Faces Legal Setback and Strategic Pivot Amid Major Investment Drive

Tesla faces a $243M court loss over Autopilot while cutting Cybertruck prices, shifting FSD to subscription, and planning a $20B investment in robotaxis for 2026.

Tesla is navigating a complex landscape of legal pressures and strategic adjustments. The electric vehicle maker is dealing with the fallout from a significant court ruling while simultaneously implementing aggressive pricing and software changes to stimulate demand, all against the backdrop of a massive capital expenditure program.

Strategic Shifts: Pricing and Software Access

In a move to boost sales of its angular pickup, Tesla has introduced a new dual-motor Cybertruck variant with a base price of $59,990. Company CEO Elon Musk announced on his social media platform, X, that this pricing would be available for a limited ten-day window. The top-tier "Cyberbeast" model has also seen a price reduction, now listed at $99,990.

Concurrently, the company is overhauling how customers access its advanced driver-assistance system. In the United States, the Full Self-Driving (FSD) capability is now offered exclusively through a subscription model, with the option for a one-time purchase being eliminated. This fundamental shift in sales strategy is scheduled to extend to other key markets, including Australia and New Zealand, by April 2026.

Court Upholds Multi-Million Dollar Judgment

Adding to the company's challenges, a U.S. federal court on February 20, 2026, rejected Tesla's appeal of a jury verdict amounting to $243 million. The judgment is linked to a fatal 2019 crash involving a vehicle operating with its Autopilot system engaged.

The jury had assigned Tesla 33 percent of the blame for the incident. The affirmed verdict comprises approximately $43 million in compensatory damages and a further $200 million in punitive damages. Court records indicate that Tesla had previously turned down an out-of-court settlement offer of $60 million.

Billions Allocated for Autonomous Technology

These developments occur as Tesla commits enormous resources to its future technology. The automaker has declared plans to invest over $20 billion in 2026 to advance its autonomous driving systems. A major milestone in this initiative is the planned start of continuous series production for the "Cybercab" robotaxi in April 2026. This project is central to the company's long-term ambition of evolving from an automotive manufacturer into a comprehensive mobility service provider.