The jury verdict represents Tesla's second big win this year, in which juries have declined to find that its software was defective.
The trial involved gruesome testimony about the passengers' injuries, and the plaintiffs asked the jury for $400 million plus punitive damages.
The electric-vehicle maker also argued it was unclear whether Autopilot was engaged at the time of the crash.
During the trial in Riverside, an attorney for the plaintiffs showed jurors a 2017 internal Tesla safety analysis identifying "incorrect steering command" as a defect, involving an "excessive" steering wheel angle.
The automaker subsequently engineered a system that prevents Autopilot from executing the turn which caused the crash.
Persons:
Tesla, Elon Musk, Micah Lee's, Lee, Matthew Wansley, Wansley
Organizations:
Tuesday, Court, Cardozo School of Law, Tesla, Reuters
Locations:
Tesla, California, Riverside County, Los Angeles, Riverside