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Mercedes-Benz DRIVE PILOT gains first U.S. approval for Level 3 system

Credit: Mercedes-Benz

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Mercedes-Benz has officially received certification to operate its SAE Level 3 autonomous driving system, DRIVE PILOT, in Nevada, making it the first brand to do so in the United States.

Mercedes first launched its DRIVE PILOT system at the end of 2021. Then they began shipping vehicles with the capability to customers in Germany in mid-2022, becoming the first automaker in the country to pass through the government’s stringent autonomous driving certification process.

Now, the brand has become the first to receive certification in the United States.

The DRIVE PILOT system is officially certified to operate on “suitable freeway sections” in Nevada in high-traffic density situations. It can operate at speeds up to 40 MPH. The company first revealed its paperwork had been filed with Nevada and California earlier this year, with California expected to grant certification later this year. Currently, DRIVE PILOT is available on the Mercedes EQS Sedan and Mercedes S-Class sedans, with vehicles being delivered with the system beginning in the second half of this year.

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Mercedes-Benz was granted this approval as DRIVE PILOT meets the requirements of Nevada Chapter 482A for Autonomous Vehicles. As Mercedes states, some functions and applications will be available that would otherwise be blocked while driving. These activities are legally permissible depending on laws that apply where DRIVE PILOT is being used.

Best outlined by Mercedes Board Member Markus Schäfer, this is just the beginning of a larger rollout of the software:

“DRIVE PILOT demonstrates once more that our pioneering spirit is part of our DNA. Certification in Nevada marks the start of its international rollout and, with it, the dawning of a new era.”

To achieve this certification, among other regulations, Mercedes showed that its set of redundant driving systems could keep drivers safe while controlling the vehicle. A combination of steering, braking actuators, and onboard electrical system redundancy measures keep the vehicle maneuverable, even if a system fails.

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Additionally, the vehicles will rely on a combination of LiDAR, radar, and cameras that allow the car to monitor where it is relative to other vehicles constantly down to the centimeter. Mercedes combines these systems with high-precision GPS mapping, ensuring the most consistent experience possible.

DRIVE PILOT will also take matters into its own hands if drivers fail to take back control, even after “increasingly urgent” audible and visual alerts. Mercedes said that it would brake the vehicle to a standstill in a controlled manner, then will activate hazard lights. Doors will be unlocked, and Mercedes’ emergency call system will contact first responders. This is an increasingly needed feature in case of a major medical emergency.

While the Mercedes technology has often been drawn as a parallel to Tesla’s Full Self-Driving offering, through this most recent certification, Mercedes now differentiates itself in two ways. Foremost, in a crash with another vehicle, while DRIVE PILOT is engaged, Mercedes accepts legal liability for the accident. Furthermore, this certification has shown relevant authorities that it can operate safely, a process that Tesla will likely need to follow through in the near future.

Mercedes’ announcement also follows a series of other major milestones for the company. The German luxury automaker recently revealed that it would be opening its own series of EV chargers, starting in North America and working globally. Mercedes has also recently highlighted (in granular detail) its incredible production shift to EVs occurring worldwide and utilizing each of its current manufacturing plants.

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While there is no doubt many still see Mercedes as a non-threat to Tesla’s Full Self-Driving suite, today’s announcement proves otherwise. Hopefully, through this continued competition, autonomy can improve overall and become available to most people as a safe alternative to regular vehicle operation.

Alongside DRIVE PILOT, Mercedes also announced that its Level 2 driver assistance system would make its North American debut later this year, which features ADAS features like autonomous lane merging, speed controls, and perhaps most importantly, emergency braking.

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!

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Will is an auto enthusiast, a gear head, and an EV enthusiast above all. From racing, to industry data, to the most advanced EV tech on earth, he now covers it at Teslarati.

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Tesla VP explains latest updates in trade secret theft case

Tesla reportedly caught Matthews copying the tech into machines that were sold to competitors, claiming they lied about doing so for three years, and continued to ship it. That is when Tesla chose to sue Matthews in July 2024 in Federal court, demanding over $1 billion in damages due to trade secret theft.

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tesla 4680
Credit: Tesla Inc.

Tesla Vice President Bonne Eggleston explained the latest updates in a trade secret theft case the company has against a former manufacturing equipment supplier, Matthews International.

Back in 2024, Tesla had filed a lawsuit against Matthews International, alleging that the firm stole trade secrets about battery manufacturing and shared those details with some of Tesla’s competitors.

Early last year, a U.S. District Court Judge denied Tesla’s request to block Matthews International from selling its dry battery electrode (DBE) technology across the world. The judge, Edward Davila, said that the patent for the tech was due to Matthews’ “extensive research and development.”

Tesla is suing a former supplier for trade secret theft

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The two companies’ relationship began back in 2019, as Tesla hired Matthews to help build the equipment for its 4680 battery cell. Tesla shared confidential software, designs, and know-how under strict secrecy rules.

Fast forward a few years, and Tesla reportedly caught Matthews copying the tech into machines that were sold to competitors, claiming they lied about doing so for three years, and continued to ship it. That is when Tesla chose to sue Matthews in July 2024 in Federal court, demanding over $1 billion in damages due to trade secret theft.

Now, the latest twist, as this month, a Judge issued a permanent injunction—a court order banning Matthews from using certain stolen Tesla parts or designs in their machines. Matthews is also officially “liable” for damages. The exact amount would still to be calculated later.

Bonne Eggleston, a VP for Tesla, said on X today that Matthews is a supplier who “exploited customer IP through theft or deception,” and has no place in Tesla’s ecosystem:

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Tesla calls this a big win and warns other companies: “Buyer beware—don’t buy from thieves.”

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Matthews hit back with a press release claiming victory. They say an arbitrator ruled they can keep selling their own DBE equipment to anyone and rejected Tesla’s request for a total sales ban. They call Tesla’s claims “nonsense” and insist their 20-year-old tech is independent. Both sides are spinning the same narrow ruling: Matthews can sell their version, but they’re blocked from using Tesla’s specific secrets.

What are Tesla’s Current Legal Options

The case isn’t over—it’s moving to the damages phase. Tesla can:

  • Push forward in court or arbitration to calculate and collect huge financial penalties (potentially $1 billion+ if willful theft is proven).
  • Enforce the permanent injunction with contempt charges, fines, or even jail time if Matthews violates it.
  • Challenge Matthews’ new patents that allegedly copy Tesla’s work, asking courts to invalidate them or add Tesla as co-inventor.
  • Seek extra damages, lawyer fees, and possibly punitive awards under the federal Defend Trade Secrets Act and California law.

Tesla could also refer evidence to federal prosecutors for possible criminal trade-secret charges (rare but serious). Settlement is always possible, but Tesla’s fiery public response suggests they want full accountability.

This isn’t just corporate drama. It shows why trade secrets matter even when Tesla open-sources some patents, confidential know-how shared in trust must stay protected. For the EV industry, it’s a reminder: steal from your biggest customer, and you risk losing everything.

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Tesla Cybercab includes this small but significant feature

The Cybercab is Tesla’s big plan to introduce fully autonomous ride-sharing in a seamless fashion. In fact, the Full Self-Driving suite was geared toward alleviating the need to manually drive vehicles.

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Credit: Tesla

Tesla Cybercab manufacturing is strikingly close, as the company is still aiming for an April start date. But small and significant features are still being identified for the first time as production units appear all over the country for testing and for regulatory events, like one yesterday in Washington, D.C.

The Cybercab is Tesla’s big plan to introduce fully autonomous ride-sharing in a seamless fashion. In fact, the Full Self-Driving suite was geared toward alleviating the need to manually drive vehicles.

This was for everyone, including the disabled, who are widely reliant on ride-sharing platforms, family members, and medical shuttles for transportation of any kind. Cybercab aims to change that, and Tesla evidently put a focus on those riders while developing the vehicle, evident in a small but significant feature revealed during its appearance in the Nation’s Capital.

Tesla Cybercab display highlights interior wizardry in the small two-seater

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Tesla has implemented Braille within the Cybercab to make it easier for blind passengers to utilize the vehicle. On both the ‘Stop/Hazard Lights’ button and the Door Releases, Tesla has placed Braille so that blind passengers can navigate their way through the vehicle:

This is a great addition to the Cybercab, especially as Full Self-Driving has been partially pointed at as a solution for those with disabilities that would keep them from driving themselves from place to place.

It truly is a great addition and just another way that Tesla is showing they are making this massive product inclusive for everyone out there, including those who have not been able to drive due to not having vision.

The Cybercab is set to enter mass production sometime in April, and it will be responsible for launching Tesla’s massive plans for an autonomous ride-sharing program.

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Elon Musk

Tesla and xAI team up on massive new project

It is the latest move by a Musk company to automate, streamline, and reduce the manual, monotonous, and tedious work currently performed by humans through AI and robotics development. Digital Optimus will be capable of processing and actioning the past five seconds of a real-time computer screen video and keyboard and mouse actions.

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Credit: Grok

Elon Musk teased a massive new project, to be developed jointly by Tesla and xAI, called “Digital Optimus” or “Macrohard,” the first development under Tesla’s investment agreement with xAI.

Musk announced on X that Digital Optimus will “be capable of emulating the function of entire companies.”

It is the latest move by a Musk company to automate, streamline, and reduce the manual, monotonous, and tedious work currently performed by humans through AI and robotics development. Digital Optimus will be capable of processing and actioning the past five seconds of a real-time computer screen video and keyboard and mouse actions.

Essentially, it will be an AI version of a desk worker in many capacities, including accounting, HR tasks, and others.

Musk said:

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“Grok is the master conductor/navigator with deep understanding of the world to direct digital Optimus, which is processing and actioning the past 5 secs of real-time computer screen video and keyboard/mouse actions. Grok is like a much more advanced and sophisticated version of turn-by-turn navigation software. You can think of it as Digital Optimus AI being System 1 (instinctive part of the mind) and Grok being System 2. (thinking part of the mind).”

Its key applications would be used for enterprise automation, simulating entire companies, high-volume repetitive tasks, and potentially, future hybrid use with the Optimus robot, which would handle physical tasks, while Digital Optimus would handle the clerical work.

Tesla announces massive investment into xAI

The creation of a digital AI suite like Digital Optimus would help companies save time and money, as well as become more efficient in their operations through massive scalability. However, there will undoubtedly be concerns from people who are skeptical of a fully-integrated AI workhorse like this one.

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From an energy consumption perspective and just a general concern for the human workforce, these types of AI projects are polarizing in nature.

However, Digital Optimus would be a great digital counterpart to Tesla’s physical Optimus robot, as it would be a hyper-efficient addition to any company that is looking for more production for less cost.

Musk maintains that there is no other company on Earth that will be able to do this.

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