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Tesla Crash into Texas Home Sparks Investigations, Lawsuit, Share Drop

6/29/2026

26 4 Full Breakdown

Summary

Story summary

On June 20, 2026, Michael Butler’s Tesla Model 3 crashed into a Katy, Texas home at 73 mph, killing Martha Avila.
Butler said the car was in Self-Driving mode, while Tesla artificial intelligence (AI) vice president Ashok Elluswamy said the driver overrode the system and kept accelerator pressed.
The NHTSA and NTSB each opened a separate federal investigation of the crash.
Jennifer Barbour sued Tesla and Butler.
Tesla’s share price fell to $405.05.

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Story summary

On June 20, 2026, Michael Butler’s Tesla Model 3 crashed into a Katy, Texas home at 73 mph, killing Martha Avila.
Butler said the car was in Self-Driving mode, while Tesla artificial intelligence (AI) vice president Ashok Elluswamy said the driver overrode the system and kept accelerator pressed.
The NHTSA and NTSB each opened a separate federal investigation of the crash.
Jennifer Barbour sued Tesla and Butler.
Tesla’s share price fell to $405.05.