Tesla Inc. has reached a settlement in a wrongful-death lawsuit filed by the family of Apple engineer Walter Huang, who died in a 2018 crash while using Tesla's Autopilot.

The financial terms of the settlement are confidential, with both parties agreeing to keep the details private.

A judge has not yet approved the settlement, with a hearing scheduled for April 11th to discuss the matter further.

The lawsuit alleged that the Tesla vehicle was 'defective in its design' due to the Autopilot software, a claim supported by the National Transportation Safety Board's finding that Autopilot and distracted driving were factors.

Tesla had intended to argue that Huang was distracted by his phone during the crash and wanted to involve Apple in the trial, a move Apple resisted.

This marks Tesla's first settlement over an Autopilot-related lawsuit and could prompt increased regulatory scrutiny of such features, potentially affecting Tesla's stock value.

Despite the lawsuit, Tesla continues to promote its Autopilot and Full Self-Driving features, even offering an FSD beta for sale.