Happy Tuesday! It's August 26, 2025, and this is The Morning Shift — your daily roundup of the top automotive headlines from around the world, in one place. This is where you'll find the most important stories that are shaping the way Americans drive and get around.
In this morning's edition, we're looking at how much Tesla spent to not settle a court case, as well as Stellantis' seemingly shuttered self-driving plans. We'll also look at Hyundai's latest round of investment in the U.S., and the latest lawsuit
from California dealers against direct sales.
Read more: These Are Your Worst Experiences With A Recall
1st Gear: Tesla Turned Down A $60 Million Settlement For A Court Case That Cost It $243 Million
Back in 2019, a Model S running Autopilot hit a Chevy Tahoe, killing one occupant and injuring another. Tesla had an offer to settle the resulting lawsuit for $60 million dollars, but turned the deal down. The final bill for the suit that Tesla fought to the end? $242.6 million. From Reuters:
Billionaire Elon Musk's electric vehicle company Tesla rejected a $60 million settlement proposal in a lawsuit over the 2019 fatal crash of an Autopilot-equipped Model S before a jury this month awarded a $243 million verdict in the case.
Lawyers for the plaintiffs disclosed the settlement proposal in a filing on Monday in the federal court in Miami, Florida, as part of a request for legal fees from Tesla.
...
The trial focused on an April 2019 crash involving a 2019 Model S featuring Autopilot driver-assistance software. The driver's Tesla struck the victims' parked Chevrolet Tahoe as they were standing beside it on a shoulder.
Jurors awarded the estate of Naibel Benavides Leon, who was killed, and her boyfriend Dillon Angulo, who was seriously injured, a combined $129 million in compensatory damages, plus $200 million in punitive damages. Tesla was held liable for 33% of the compensatory damages, or $42.6 million, and all of the punitive damages.
Of course, $60 million is already an unfathomable amount of money. When compared with the result of the suit, though, Tesla could've saved a lot of cash by paying the $60 million when it had the chance.
2nd Gear: Stellantis Might Throw In The Towel On Level 3 Semi-Autonomy
Earlier this year, Stellantis unveiled its AutoDrive semi-autonomous driver assist system. Now, just six months later, the project still hasn't made its way to a consumer vehicle — and Stellantis now says it may never happen. From Reuters:
Stellantis has shelved its first Level 3 advanced driver-assistance program because of high costs, technological challenges and concerns about consumer appetite, three people familiar with the matter told Reuters.
As recently as February, Stellantis said its in-house system, which is part of the AutoDrive program, was ready for deployment and a key pillar of its strategy. The company said the system, which enables drivers to have their hands off the wheel and eyes off the road under certain conditions, would allow them to temporarily watch movies, catch up on emails, or read books.
That Level 3 software was never launched, the company confirmed to Reuters. But it stopped short of saying that the program was canceled.
"What was unveiled in February 2025 was L3 technology for which there is currently limited market demand, so this has not been launched, but the technology is available and ready to be deployed," a Stellantis spokesperson said.
There certainly seems to be market demand for semi-autonomous systems — every automaker seems to be racing to add them — but perhaps Stellantis is waiting on the lawsuit demand to dry up. Especially with the name AutoDrive sounding so similar to Tesla's Autopilot, which is now frequently seen as misleading, Stellantis may be playing it safe on a legal front.
3rd Gear: Hyundai Is Pouring $5 Billion Into The United States
In the wake of Trump's tariffs, companies are split as to how to respond. While some nations have stopped even sending commercial mail to the United States, automakers have generally found a different tactic: Big, flashy investments in American manufacturing. Take Hyundai, which just announced another $5 billion to spend on the States. From Automotive News:
Hyundai Motor Group is adding $5 billion of investments to its U.S. operations to "substantially" increase its production capacity for Hyundai, Genesis and Kia cars, while also creating a robot manufacturing hub.
The new U.S. commitment, announced Aug. 26, comes on top of some $21 billion announced in March, bringing the South Korean carmaker's total to $26 billion from 2025 to 2028, as it prioritizes localization amid trade upheaval.
The additional $5 billion will fund "expanding auto production, substantially," spokesman Dain Kang said. He declined to provide further details about the automotive build out.
It remains to be seen whether American manufacturing actually ends up being cheaper than the import tariffs, given that companies will still pay to import parts and raw materials, but it seems Hyundai is willing to bet big on North America in its future endeavors. Maybe this means we'll see more Genesis cars on the streets. Give us more fantastic wheels and weird headlights.
4th Gear: California Dealers Sue Sony And Honda Over Afeela Direct Sales
California car dealers hate direct sales, because direct sales make their questionable business practices no longer a necessary evil. Rather than modernizing, or evolving beyond the scum, they've instead decided to mount massive legal attacks against any manufacturer that doesn't partake in their services. This is a good and normal business practice, and in no way any sort of protection racket. Anyway, they're coming for Afeela now, claiming the cars should be sold in Honda dealers. From Automotive News:
The California New Car Dealers Association filed a lawsuit against American Honda Motor Co., Sony Honda Mobility Inc. and Sony Honda Mobility of America Inc., accusing the companies of violating state franchise laws.
The complaint, filed Aug. 19 in in Los Angeles County Superior Court, alleges that the companies are bypassing Honda and Acura dealerships to sell its Afeela electric vehicle directly to consumers.
"This is a direct attack on the 161 franchised Honda and Acura dealers in California that have been loyal partners in building the brand's reputation and success for decades," association president Brian Maas said in a statement.
"By cutting dealers out, they're stripping vital consumer protections like local service support, transparent pricing and warranty assistance," Maas said.
The Afeela is only half a Honda anyway, but the real core of the issue is that the dealer model is dated. Can you name a dealer that's really known for its transparent pricing? Be serious.
Reverse: Brooklyn, Baby
Y'know who didn't play in the first-ever televised major league baseball game? The Yankees. I rest my case.
On The Radio: LCD Soundsystem - 'Daft Punk Is Playing At My House'
I have no idea why I'm in an LCD Soundsystem mood this morning, but I very much am. It was a struggle to pick between this and "Dancy Yrself Clean" for On the Radio.
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