Tesla, the electric car giant, has agreed to settle a lawsuit over a fatal crash in 2018 involving its Autopilot technology. The crash resulted in the death of Apple engineer Walter Huang after his Model X collided with a highway barrier while operating on Autopilot.

The lawsuit, brought by Mr. Huang’s family, was set to go to trial in the California Superior Court, but the terms of the settlement were not disclosed. Reports indicate that the settlement still requires approval from a judge.

Prior to the settlement, Tesla had argued that Mr. Huang had misused the Autopilot system by playing a video game just before the accident. The firm has previously won trials in California by asserting that drivers involved had not followed its instructions to maintain attention while using the system.

While the details of the settlement were not revealed, the agreement comes at a time when Tesla is facing challenges in the market. The company has experienced a decline in deliveries, attributed to factors such as a fire at its European factory, global shipping disruption, and increased competition from rivals like BYD. As a result, Tesla has repeatedly reduced prices in response to the heightened competition, particularly in key markets like China.

Elon Musk, CEO of Tesla, recently announced the company’s plans to unveil a self-driving robotaxi in August, despite the ongoing scrutiny of its Autopilot and Full Self-Driving technology. This development comes as Tesla’s shares have seen a significant decrease in value since the beginning of the year.

Additionally, Tesla is facing a series of lawsuits over crashes related to the alleged use of its driver-assistant technology, while the US National Highway Traffic Safety Administration has been investigating some accidents involving Autopilot.

For years, Tesla has been promising to produce an autonomous car, but has yet to launch one. The settlement with Mr. Huang’s family adds to the company’s ongoing legal and market challenges.