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Tesla Model Y Test Drive Crash Leads to $10 Million Lawsuit
Arjun Pillai | August 3, 2026 4:18 PM CST

An employee of the U.S. Federal Reserve Board has filed a case in federal court against Tesla, seeking more than $10 million in damages over injuries she says were suffered in a crash during a dealer test drive of a Tesla Model Y SUV. According to the plaintiff, Tesla employees had put the vehicle into its quickest-accelerating drive mode without telling her, leaving the driver unprepared for the level of performance available at the accelerator.

The lawsuit focuses on Alemzewd Lawgalet, 59, who says staff at the Tesla store assured her that EVs “operated the same as a gas vehicle” after she expressed concern that she had never driven an electric car before. This, she alleges, happened even though the employees had reportedly set the car to its “Insane” drive mode, which delivers the maximum acceleration available to the driver. In the Model Y used for the test drive, that meant the SUV was capable of accelerating from 0-60 miles per hour in 3.3 seconds.

According to The Independent, Lawgalet began the test drive in the Model Y but chose to cut it short after becoming frightened that something was wrong with the vehicle when it started using regenerative braking on Interstate 395. Lawgalet said she had not been informed about this feature of electric cars. After leaving the highway, she accelerated away from a red light and lost control of the vehicle as it “lurched forward at an extreme speed and horsepower compared to the force placed on the accelerator,” according to her complaint. Lawgalet eventually crashed the Model Y through the front of a nearby salon and says she suffered injuries in the incident.

“As a direct and proximate result of the crash, Plaintiff suffered serious and permanent bodily injuries, which have caused and will continue to cause physical and mental pain and suffering,” the complaint states. “Plaintiff has incurred and will continue to incur medical, therapeutic, and related expenses. Plaintiff sustained additional damages including the inability to enjoy the normal functions of life and lost wages.”

Lawgalet is seeking $10 million or more in compensatory damages, along with a further $350,000 in punitive damages for what the complaint describes as Tesla’s “recklessness,” “willful and wanton conduct,” and “conscious disregard for the health and safety of others.”

A spokesperson for Tesla did not comment to The Independent. Road & Track has also contacted Tesla for a response and said it will update the story if the carmaker replies.


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