Mercedes Beats Tesla on AutoBahn

Daimler AG’s Mercedes-Benz won regulatory approval to deploy a hands-free driving system in Germany ahead of Tesla Inc., gaining an edge in the race to offer higher levels of automation in one of the world’s most competitive car markets.

The automaker has been given the green light to sell its Drive Pilot package for use on stretches of the country's highway system at speeds of up to 60 kilometers (37 miles) per hour, Mercedes. The system has been approved for Level 3 autonomous driving, a higher level than Tesla's Level 2 autopilot system, and will allow drivers to take their hands off the wheel in slow traffic.

Mercedes-Benz EQS

“Drive Pilot allows the driver to get away from traffic and concentrate on certain side activities,” the luxury automaker said in a statement. "For example, to communicate with colleagues at the office in the car, write e-mails, surf the Internet or relax and watch a movie."

Tesla, Alphabet Inc.'s Waymo, and others have pursued autonomous driving technology for years. A fully autonomous vehicle would be very attractive to premium customers as it would allow drivers to work or use entertainment systems while on the move.

Mercedes only got clearance for the system in Germany, but said it was seeking regulatory approval in other jurisdictions as well. Drive Pilot will be an option for the S-Class and EQS models from the middle of next year. The automaker has yet to decide how much it will charge for the system, which is approved for use on some 13,000 kilometers of the German road network.

Tesla got into trouble in Europe's largest auto market with its driver assistance technology after a German court rejected the company's promotion of autopilot last year, saying the automaker had misled consumers about what the system can do.

CEO Elon Musk has long offered optimistic views about the capabilities of his cars, even going so far as to start charging customers thousands of dollars for a "fully autonomous drive" feature in 2016. Years later, Tesla demands still users of its autopilot. system to be fully attentive and ready to resume driving at any time.

Mercedes is not the first automaker to bring Tier 3 technology to market in a production car. Honda Motor Co. received approval from Japanese regulators for such a system on its Legend model in 2020, although it only implemented it in limited production.