The trial, brought by the family of Apple engineer Walter Huang, was scheduled to begin this week
Tesla has promised to produce an autonomous car but has yet to launch one.
Electric car giant Tesla has agreed to settle a lawsuit over a crash in 2018 which killed Apple engineer Walter Huang after his Model X, operating on Autopilot, collided with a highway barrier.
If the trial had gone ahead, it would have brought increased scrutiny of the firm's Autopilot and Full Self-Driving technology.
Tesla did not immediately respond to a BBC request for comment.
Tesla argued that Mr Huang had misused the system because he was playing a video game just before the accident.
For many years, Tesla has promised to produce an autonomous car but has yet to launch one.
Deliveries slid sharply in the first three months of this year as Tesla grappled with a fire at its European factory, global shipping disruption and growing competition.
Tesla has cut prices repeatedly in response to increased competition from rivals such as BYD but demand in key markets like China has fallen.
Tesla's shares have lost almost a third of their value since the start of this year.
Tesla 'disaster' with fewest deliveries since 2022.