Mercedes-Benz Challenges Tesla with New Urban Autonomous Driving System for U.S. Streets

Mercedes-Benz autonomous car driving on a city street.
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    Mercedes-Benz is set to launch its advanced driver-assistance system, MB.DRIVE ASSIST PRO, in the United States later this year. This new technology will allow Mercedes vehicles to operate autonomously on city streets, marking a significant step in the competition with Tesla’s Full Self-Driving system.

    Key Takeaways

    • Mercedes-Benz will introduce MB.DRIVE ASSIST PRO in the U.S. this year, enabling autonomous driving on city streets under driver supervision.
    • The system, already available in China, will compete directly with Tesla’s Full Self-Driving (FSD) offering.
    • Pricing for the U.S. market includes a three-year package for $3,950, with monthly and yearly subscription options to be announced.
    • Like Tesla’s FSD, Mercedes’ system requires drivers to remain alert and ready to intervene.

    Navigating Urban Complexity

    While many automakers restrict autonomous features to highways due to their predictable traffic patterns, Mercedes-Benz is venturing into the more challenging urban environment. MB.DRIVE ASSIST PRO is designed to handle city driving, including navigating intersections, making turns, and obeying traffic signals. This capability directly rivals Tesla’s FSD, which is currently the only similar system available for city streets in the U.S.

    System Features and Pricing

    The MB.DRIVE ASSIST PRO system utilizes approximately 30 sensors, including cameras, radar, and ultrasonic sensors, feeding data to a powerful computer capable of processing up to 508 trillion operations per second. The system will be powered by Nvidia’s "DRIVE AV" software and AI infrastructure, integrated into Mercedes-Benz’s new MB.OS platform, first featured in the Mercedes-Benz CLA. The system also supports over-the-air updates for continuous improvement.

    For U.S. customers, the system will be available for $3,950 for a three-year period. Mercedes-Benz plans to disclose pricing for monthly and yearly subscription options at a later date. This pricing strategy contrasts with Tesla’s FSD, which costs around $8,000 as a one-time purchase or $99 per month via subscription.

    The Evolving Landscape of Autonomous Driving

    Mercedes-Benz’s move highlights the rapid advancements in software that are pushing autonomous technology from testing phases toward commercial deployment. Despite these advancements, safety concerns and regulatory hurdles continue to shape the rollout of fully autonomous vehicles for personal use. Both Mercedes and Tesla emphasize that their systems require constant driver vigilance and readiness to take control, indicating that true, unsupervised autonomy in personal vehicles remains a future goal. Investors continue to see autonomous technology as a significant long-term revenue stream for the automotive industry.

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