News
Mercedes announces major autonomous driving update at CES
Mercedes-Benz has announced a series of updates coming to its autonomous driving offerings in North America and many other key software updates.
Mercedes has slowly become a leader in autonomous driving and vehicle software, along with the likes of Tesla. And while its far more conservative approach to software introduction has meant that fewer of its customers have benefited from its offering than its American counterpart, the company’s full legal acceptance of responsibility has inspired rare confidence in the system. Now, Mercedes has announced key updates coming to its autonomous driving suite in 2023.
Most excitingly, Mercedes’ level 3 autonomous driving system has entered final approval for operation in California and Nevada, and the company will be introducing “conditionally automated driving” following final approval. This allows drivers to not only take their hands off the wheel but watch movies or host meetings while their car takes the wheel in specified circumstances. In Europe, this functionality has been limited to use up to 60km/h, but the company’s press release did not specify the requirements for use on American roadways.
The other major change coming to Mercedes’ autonomous driving software is its “Automatic Lane Change” (ALC), finally becoming available in North America. ALC is the level 2 autonomous driving system that Mercedes offers, and it essentially functions as hyper-intelligent cruise control. The car will not only slow and accelerate to keep up with traffic, but it will also automatically move left and pass slower traffic if it deems it safe. The system will even follow route guidance and make lane changes to ensure drivers don’t miss their necessary exits from highways.
The other major software upgrades coming to Mercedes vehicles in 2023 include a full suite of streaming services, audio quality/audio streaming improvements, and improved EV route planning via the company’s new EV charging network.
-->The new selection of streaming services is made available by a partnership with ZYNC Streaming. This in-car system allows customers to quickly and easily access a long list of different streaming services from their vehicle. While the improvement to audio quality/audio streaming is the result of a partnership with Apple Music, UMG, and Dolby Atmos, “seamlessly combining technology to amaze the user,” says Magnus Östberg, Chief Software Officer at Mercedes-Benz.
The CSO goes on to point out how in-car entertainment offerings have changed what Mercedes is expected to bring to customers; “In-car entertainment today is much more than a high-end stereo system. A typical top-of-the-line S-Class or EQS will most likely be equipped with a Burmester High-End 4D-surround sound system with 39 speakers, plus the Hyperscreen. Not to mention all the hardware and software to make it work together.” Only further concreting the importance of the company’s partnerships within streaming and audio.
As software and in-car entertainment options become increasingly important in new luxury electric vehicle offerings, Mercedes has placed itself well by expanding functionality and improving existing offerings. But the question remains, will other legacy automakers take notice and also work to catch up with the market leader, Tesla?
What do you think of the article? Do you have any comments, questions, or concerns? Shoot me an email at william@teslarati.com. You can also reach me on Twitter @WilliamWritin. If you have news tips, email us at tips@teslarati.com!
-->
News
Tesla Model 3 named New Zealand’s best passenger car of 2025
Tesla flipped the switch on Full Self-Driving (Supervised) in September, turning every Model 3 and Model Y into New Zealand’s most advanced production car overnight.
The refreshed Tesla Model 3 has won the DRIVEN Car Guide AA Insurance NZ Car of the Year 2025 award in the Passenger Car category, beating all traditional and electric rivals.
Judges praised the all-electric sedan’s driving dynamics, value-packed EV tech, and the game-changing addition of Full Self-Driving (Supervised) that went live in New Zealand this September.
Why the Model 3 clinched the crown
DRIVEN admitted they were late to the “Highland” party because the updated sedan arrived in New Zealand as a 2024 model, just before the new Model Y stole the headlines. Yet two things forced a re-evaluation this year.
First, experiencing the new Model Y reminded testers how many big upgrades originated in the Model 3, such as the smoother ride, quieter cabin, ventilated seats, rear touchscreen, and stalk-less minimalist interior. Second, and far more importantly, Tesla flipped the switch on Full Self-Driving (Supervised) in September, turning every Model 3 and Model Y into New Zealand’s most advanced production car overnight.
FSD changes everything for Kiwi buyers
The publication called the entry-level rear-wheel-drive version “good to drive and represents a lot of EV technology for the money,” but highlighted that FSD elevates it into another league. “Make no mistake, despite the ‘Supervised’ bit in the name that requires you to remain ready to take control, it’s autonomous and very capable in some surprisingly tricky scenarios,” the review stated.
-->At NZ$11,400, FSD is far from cheap, but Tesla also offers FSD (Supervised) on a $159 monthly subscription, making the tech accessible without the full upfront investment. That’s a game-changer, as it allows users to access the company’s most advanced system without forking over a huge amount of money.
News
Tesla starts rolling out FSD V14.2.1 to AI4 vehicles including Cybertruck
FSD V14.2.1 was released just about a week after the initial FSD V14.2 update was rolled out.
It appears that the Tesla AI team burned the midnight oil, allowing them to release FSD V14.2.1 on Thanksgiving. The update has been reported by Tesla owners with AI4 vehicles, as well as Cybertruck owners.
For the Tesla AI team, at least, it appears that work really does not stop.
FSD V14.2.1
Initial posts about FSD V14.2.1 were shared by Tesla owners on social media platform X. As per the Tesla owners, V14.2.1 appears to be a point update that’s designed to polish the features and capacities that have been available in FSD V14. A look at the release notes for FSD V14.2.1, however, shows that an extra line has been added.
“Camera visibility can lead to increased attention monitoring sensitivity.”
Whether this could lead to more drivers being alerted to pay attention to the roads more remains to be seen. This would likely become evident as soon as the first batch of videos from Tesla owners who received V14.21 start sharing their first drive impressions of the update. Despite the update being released on Thanksgiving, it would not be surprising if first impressions videos of FSD V14.2.1 are shared today, just the same.
-->Rapid FSD releases
What is rather interesting and impressive is the fact that FSD V14.2.1 was released just about a week after the initial FSD V14.2 update was rolled out. This bodes well for Tesla’s FSD users, especially since CEO Elon Musk has stated in the past that the V14.2 series will be for “widespread use.”
FSD V14 has so far received numerous positive reviews from Tesla owners, with numerous drivers noting that the system now drives better than most human drivers because it is cautious, confident, and considerate at the same time. The only question now, really, is if the V14.2 series does make it to the company’s wide FSD fleet, which is still populated by numerous HW3 vehicles.
News
Waymo rider data hints that Tesla’s Cybercab strategy might be the smartest, after all
These observations all but validate Tesla’s controversial two-seat Cybercab strategy, which has caught a lot of criticism since it was unveiled last year.
Toyota Connected Europe designer Karim Dia Toubajie has highlighted a particular trend that became evident in Waymo’s Q3 2025 occupancy stats. As it turned out, 90% of the trips taken by the driverless taxis carried two or fewer passengers.
These observations all but validate Tesla’s controversial two-seat Cybercab strategy, which has caught a lot of criticism since it was unveiled last year.
Toyota designer observes a trend
Karim Dia Toubajie, Lead Product Designer (Sustainable Mobility) at Toyota Connected Europe, analyzed Waymo’s latest California Public Utilities Commission filings and posted the results on LinkedIn this week.
“90% of robotaxi trips have 2 or less passengers, so why are we using 5-seater vehicles?” Toubajie asked. He continued: “90% of trips have 2 or less people, 75% of trips have 1 or less people.” He accompanied his comments with a graphic showing Waymo’s occupancy rates, which showed 71% of trips having one passenger, 15% of trips having two passengers, 6% of trips having three passengers, 5% of trips having zero passengers, and only 3% of trips having four passengers.
The data excludes operational trips like depot runs or charging, though Toubajie pointed out that most of the time, Waymo’s massive self-driving taxis are really just transporting 1 or 2 people, at times even no passengers at all. “This means that most of the time, the vehicle being used significantly outweighs the needs of the trip,” the Toyota designer wrote in his post.
-->Cybercab suddenly looks perfectly sized
Toubajie gave a nod to Tesla’s approach. “The Tesla Cybercab announced in 2024, is a 2-seater robotaxi with a 50kWh battery but I still believe this is on the larger side of what’s required for most trips,” he wrote.
With Waymo’s own numbers now proving 90% of demand fits two seats or fewer, the wheel-less, lidar-free Cybercab now looks like the smartest play in the room. The Cybercab is designed to be easy to produce, with CEO Elon Musk commenting that its product line would resemble a consumer electronics factory more than an automotive plant. This means that the Cybercab could saturate the roads quickly once it is deployed.
While the Cybercab will likely take the lion’s share of Tesla’s ride-hailing passengers, the Model 3 sedan and Model Y crossover would be perfect for the remaining 9% of riders who require larger vehicles. This should be easy to implement for Tesla, as the Model Y and Model 3 are both mass-market vehicles.
Tesla Model 3 named New Zealand’s best passenger car of 2025
Tesla starts rolling out FSD V14.2.1 to AI4 vehicles including Cybertruck
