Mercedes latest tech is ahead of Tesla in one key area

TheStreet

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German automaker Mercedes-Benz (MBGAF) has edged Elon Musk’s Tesla (TSLA) in technology at the core of the latter’s technological ethos.

The three-pointed star was the first automaker to offer Society of Automotive Engineers (SAE) Level 3, hands-off, eyes-off self-driving in a technology called Drive Pilot. As of June 8, 2023, it is approved for sale, lease, and use in two U.S. states: Nevada and California.

At the time, Mercedes said that the Drive Pilot could only be utilized on certain freeway sections at speeds below 40 miles per hour; which makes it suitable for giving your hands, feet, and sanity a rest on those notorious traffic jams on the freeways in Los Angeles.

However, Mercedes engineers in Germany have found a way to make an already groundbreaking technology even better.

A Mercedes-Benz representative watches ‘Ghostbusters’ while using the DRIVE PILOT 95 Level 3 autonomous driving system.

Mercedes-Benz

Mercedes Benz [hands-free] autobahn crusing

Mercedes-Benz announced on Sept. 23 that its Drive Pilot system will be getting a significant upgrade in Germany.

Starting in early 2025, Mercedes vehicles equipped with its Drive Pilot system will get a bit of a speed upgrade. Instead of conforming to a speed of up to 60k km/h (~37 miles per hour), the souped-up Drive Pilot system will be able to drive occupants up to a speed of 95 km/h (~60 miles per hour) on Germany’s Autobahn in Mercedes comfort.

Mercedes-Benz Chief Technology Officer Markus Schäfer said that the increased speed will allow drivers of its vehicles to “use even more of their time more efficiently.” The extent of this, according to Mercedes, can include “secondary activities” like “working, surfing the internet, watching TV or even streaming a movie” while the Drive Pilot drives the car.

Mercedes says the new update will not require any new external equipment such as LiDAR, radar, or camera gear; it is purely a software update that will simply take place over the air a la Tesla, pending re-certification by Germany’s Federal Motor Transport Authority which is expected by the end of this year.

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Once the regulators certify the new update, current Drive Pilot owners can upgrade for free, or eligible vehicle owners without Drive Pilot can purchase it for a fee of €5,950 (~$6,617).

Mercedes says it is not done unlocking the full extent of what its autonomous technology can do. In Germany, the speed limit for autonomous vehicles is 130 km/h (~81 mph), and Mercedes seeks to push its vehicles to that speed by 2030. Additionally, it is already testing Level 4 autonomy on Chinese roads — the same SAE autonomy level as Google’s Waymo (GOOGL) robotaxis.

But while Waymo’s robotaxis is authorized to pick up passengers and roam the city streets and freeways of U.S. cities like San Francisco, Los Angeles, and Phoenix while observing posted speed limits, the Mercedes Drive Pilot system is designed to be used by Mercedes owners solely on highways — specifically on the right-hand lane of the Autobahn with another vehicle in front of it.

Additionally, in the interest of safety, Mercedes is letting other drivers on the road know that the driver behind the wheel is using this feature. Beginning in the 2026 model year, Mercedes S-Class and EQS sedans equipped with Drive Pilot will roll out with turquoise lights in Nevada and California to signal to other drivers that the feature is in use.

“The inclusion of marker lights is poised to substantially enhance public acceptance of automated driving and contribute to road safety, as the lights clearly visualize the automated driving system’s status on the exterior,” Mercedes-Benz said in a December 2023 statement. “This also allows traffic law enforcement and police officers to identify the system’s status and determine whether drivers are permitted to engage in secondary activities during the conditionally automated journey.”

In a statement to TheStreet, a Mercedes-Benz USA spokesperson said:

“Currently, the advanced speed functionalities of DRIVE PILOT, which are available in Germany, will not be extended to the U.S. market due to differences in roadways, conditions, and traffic. Focused on safety, we are committed to adapting our technology to meet the unique requirements of different markets as regulations and conditions permit.”

Mercedes-Benz Group AG, which trades on OTC markets as MBGAF, is up 1.59% today, trading at $62.35 at the time of writing.

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