Mercedes Introduces Self-Driving Tech for U.S. Cities

• Mercedes' system is priced at $3,950 for three years compared to Tesla's Full Self-Driving package at $8,000 one-time or $99/month, making it competitively positioned
• The technology uses approximately 30 sensors feeding data to a computer processing up to 508 trillion operations per second, with Nvidia DRIVE AV software powering the system
• Drivers must remain alert and ready to intervene at all times, as full autonomy without human supervision remains constrained by safety concerns and regulation

Mercedes Launches Urban Self-Driving System to Challenge Tesla

Key Development:

Mercedes-Benz announced Monday it will introduce MB.DRIVE ASSIST PRO in the U.S. later this year, enabling autonomous driving on city streets under driver supervision. This marks the German automaker's direct challenge to Tesla's Full Self-Driving (FSD) system, currently the only comparable offering in the American market.

Pricing Structure:

• Mercedes: $3,950 for three years (monthly and yearly subscription pricing to be announced)
• Tesla FSD: $8,000 one-time purchase or $99/month subscription

Technical Specifications:

The system utilizes approximately 30 sensors—including cameras, radar, and ultrasonic sensors—feeding data to a computer capable of 508 trillion operations per second. Nvidia confirmed its DRIVE AV software and AI infrastructure will power the technology in the new Mercedes-Benz CLA, the brand's first vehicle featuring the MB.OS platform. Over-the-air updates will enable future improvements.

Operational Capabilities:

MB.DRIVE ASSIST PRO can autonomously navigate from parking lots to destinations, handling city intersections, turns, and traffic signals. However, like Tesla's FSD, drivers must remain alert and ready to intervene. The system has been available in China since late 2024.

Market Context:

Most automakers restrict self-driving features to highways due to predictable traffic patterns. Urban environments present greater challenges with pedestrians, cyclists, and unpredictable situations. While Tesla CEO Elon Musk previously promised fully autonomous vehicles, the company has focused on incremental FSD improvements and a limited Austin robotaxi service with safety monitors.

Industry Implications:

This launch signals commercial advancement of autonomous technology beyond testing phases, though regulatory constraints and safety concerns continue limiting full autonomy. Investors view autonomous capabilities as significant long-term revenue drivers for automakers.