Mercedes has now been approved in two states to be able to use turquoise lights to signify when its vehicles are in an automated driving mode.
On Tuesday, Mercedes shared a press release announcing that it has received exemptions in California and Nevada to test special turquoise marker lights to indicate its automated driving mode. The states have each granted permit approvals that allow Mercedes to use the colored lights in certain EQS and S-Class vehicles equipped with its Drive Pilot partially automated driving mode.
“We are the first automaker in the world to receive such approvals in the U.S., specifically in California and Nevada,” said Markus Schäfer, Mercedes-Benz board member and Chief Technology Officer of Development & Purchasing. “The more automated driving vehicles populate the road, the more important communication and interaction between the vehicle and the environment become.”
The turquoise lights will be integrated into the headlights, taillights and side mirrors of Mercedes’s vehicles, set to show surrounding drivers that the cars are driving in the partially automated driving mode.
Credit: Mercedes Credit: Mercedes Credit: Mercedes
The California permit has an initial limit of two years, while the Nevada permit specifically applies to the 2026 EQS and S-Class model years. In addition, the Nevada permit will remain valid until any legislative changes are made in the state legislature.
Mercedes said it chose turquoise to differentiate from existing emergency and traffic light colors, in accordance with SAE International’s J3134 recommendation of “ADS Marker Lamps,” which suggests the color for use with automated driving systems. The turquoise color comes as an exemption to the currently approved amber, white and red lights, which are used to indicate the use of turn signals or caution lights, forward driving, and reverse driving, respectively.
The automaker also says it hopes the color will be used to help create an industry-wide standard, adding that there are no regulations for automated driving indications in auto markets around the world.
Drive Pilot, Mercedes’s automated driving system rated by SAE International for Level 3 automation, gained approval in the U.S. earlier this year. The company is set to begin customer deliveries of Drive Pilot-equipped vehicles in early 2024 in California and Nevada.
You can see SAE International’s automated driving levels below.
Credit: SAE International
It also comes amidst significant scrutiny over Tesla’s Full Self-Driving (FSD) beta, which is generally considered to be operating at a Level 2 of automation, since drivers are expected to continue monitoring the vehicle at all times. The FSD beta is available to Tesla owners who purchase it, and it offers automated steering, braking and acceleration, though drivers are warned to be prepared to take over driving at any moment.
Tesla defends ‘Autopilot’ and ‘FSD’ names in false advertising case
What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send your tips to us at tips@teslarati.com.
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Tesla considers making a big move with Model Y pricing as demand is skyrocketing
“Trending toward a need to expedite output even further, which could mean adjusting pricing upward in the coming days. Trying hard not to, will see.”

Tesla is considering making a big move with Model Y pricing as demand is skyrocketing due to the EV tax credit expiring in just over a month.
With the $7,500 EV tax credit set to be removed on September 30, Tesla is experiencing increased demand for its Model 3 and Model Y. Customers are doing whatever they can to take delivery of the car they ordered as soon as possible.
The IRS recently adjusted the EV tax credit’s rules slightly.
Previously, the vehicle had to be delivered by September 30, but a slight tweak the agency made last week will now allow customers to enter a legally binding contract along with a marginal down payment by that date. The delivery can occur after September 30, and the car can still qualify for the credit.
However, demand is getting so crazy for the Model Y that Tesla is considering a price increase on the all-electric crossover, as well as a potential boost in production output to keep up with orders.
Inventory is dwindling in several markets across the United States, a good sign for the company, as it could have one of its best quarters in recent history in terms of deliveries.
However, Tesla is thinking of bumping the price slightly, Raj Jegannathan, the company’s VP of IT, AI Infrastructure, Apps, Infosec, and Vehicle Service Operations, said on X:
Trending toward a need to expedite output even further, which could mean adjusting pricing upward in the coming days. Trying hard not to, will see.
— Raj Jegannathan (@r_jegaa) August 25, 2025
The price adjustment would come as a response to increasing production output, Jegannathan’s response seems to indicate.
The bump would help Tesla’s margins, but the idea that the company could adjust pricing by increasing it would not be popular with potential car buyers. It might encourage some buyers to put their orders in sooner, hoping to avoid a new, higher price.
However, it could also steer some buyers away from putting an order in on a vehicle, especially if the price increase is more than a few hundred dollars.
Tesla boosted the price of the Model S, Model X, and Cybertruck recently, but brought in a “Luxe Package” to help justify it.
It comes with Free Full Self-Driving, Free lifetime Supercharging, four years of premium service, and lifetime Premium Connectivity.

Tesla has produced its 100,000th new Model Y at Gigafactory Berlin. The milestone was announced by the electric vehicle maker through its official Tesla Manufacturing account on social media platform X.
New Tesla Model Y milestone
The milestone was announced by Tesla on X, when the company wrote “Today, we built the 100,000th New Model Y at Giga Berlin!” The announcement was accompanied by an image of a new Model Y coming off the line.
The milestone was received warmly by members of the Tesla community, many of whom expressed excitement at the further progress of the new Model Y program at Giga Berlin. The facility, after all, only produces Model Y units, which would make it the perfect site to produce new variants like the Model Y Performance and possibly even the Model Y L, which was recently launched in China.
New Model Y ramp
As noted in a previous report from electrive, the initial production of the new Model Y started in Giga Berlin around mid-January 2025. Since the new Model Y involved a changeover from the legacy Y to the new variant, the ramp of the new Model Y’s production at the Germany-based facility was likely a gradual process over the past months.
It would then be no surprise if the next 100,000 new Model Y units would be produced in Giga Berlin in a shorter period. Giga Berlin could become an even bigger factor in Tesla’s global sales, after all, especially if it becomes the site that produces the Model Y Performance and the Model Y L for Europe and other territories. Giga Berlin, if any, seems to be quite busy recently, with aerial videos of the facility showing a fleet of mysteriously covered Model Y units being stored within the complex.
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Tesla set to win big after IRS adjusts EV tax credit rules
“For purposes of sections 25E, 30D, and 45W, a vehicle is ‘acquired’ as of the date a written binding contract is entered into and a payment has been made. A payment includes a nominal down payment or a vehicle trade-in.”

Tesla is set to potentially come out as a big winner as the IRS has adjusted the rules of the $7,500 EV tax credit slightly.
The $7,500 tax credit for electric vehicles is set to expire on September 30, but the IRS has made a slight adjustment to the terms of the credit that will give consumers a bit more time to buy an EV and receive the discount.
The original terms of the EV tax credit were that delivery of an EV must be completed by September 30. Even if you had made a reservation or put a down payment on an EV, if it did not arrive and take delivery by September 30, the credit would not apply to you.
Tesla is ready with a perfect counter to the end of US EV tax credits
This put some people in quite a tough situation. As wait times for some EVs, especially Tesla Model Y and Model 3 vehicles, continue to be pushed back due to an increase in demand as consumers are trying to take advantage of the credit, some car buyers ordered a car that was not the trim level, paint color, or interior color that they wanted.
However, the IRS has adjusted the terms of the tax credit to enable people to have a bit more time to get the vehicle they want.
Late last week, the agency said that the meaning of “acquired” has been changed, and now, if a consumer has entered a legally binding contract to take delivery of the vehicle, which includes a nominal down payment on the car, they can take delivery after the previous September 30 deadline and still qualify for the credit.
The IRS wrote:
“For purposes of sections 25E, 30D, and 45W, a vehicle is ‘acquired’ as of the date a written binding contract is entered into and a payment has been made. A payment includes a nominal down payment or a vehicle trade-in.”
🚨 HUGE NEWS: The $7,500 EV Tax Credit is EXTENDED (sorta) 🚨
The IRS just updated its guidance:
If you enter a binding contract and make a payment (even a small downpayment or trade-in) before Sept 30, 2025, you’ve officially “acquired” the vehicle.
That means you’ve… pic.twitter.com/7Ciye8OfqB
— DennisCW | wen myp (@DennisCW_) August 22, 2025
Tesla could come out as a big winner here because of this. The company is experiencing a lot of demand for its cars because of the tax credit’s expiration, and now that the rule has been adjusted to include orders received by the 30th as long as they’re accompanied by a nominal down payment, some of these high-demand deliveries could leak into Q4.
Q3 is likely going to be a very strong quarter for Tesla, and questions remain about how the company will perform in subsequent quarters since the tax credit is going away. However, this slight adjustment is a big plus for Tesla and other EV makers.
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