No further details of the agreement, announced in a filing in San Jose federal court late Thursday, were available. The deal still has to be approved by U.S. District Judge Beth Labson Freeman.
Tesla and Steve Berman, a lawyer for the car owners, did not immediately respond to a request for comment.
The case was closely watched in the automotive and legal communities, as it was the only known court challenge Tesla faced with regard to its assisted-driving technology.