I agree that Tesla should receive punitive damages. And the size of the punitive damages must be enough to discourage bad behavior.

I'm not necessarily sure the victim(s) should get all of the punitive damages. $329 million is a gargantuan sum of money; it "feels" wrong to give a corporation-sized punishment to a small group of individuals. I could certainly see some proportion going toward funding regulatory agencies, but I fear the government getting the bulk of punitive damages would set up some perverse incentives.

I think in the absence of another alternative, giving it to the victim(s) is probably the best option. But is there an even better possible place to disburse the funds from these types of fines?