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Mercedes-Benz DRIVE PILOT captures world’s first approval for hands-free driving
Mercedes-Benz DRIVE PILOT has captured the world’s first approval for ‘conditionally automated’ driving on German highways with its Level 3 system. The German automaker’s DRIVE PILOT is the first internationally valid system, as it met the requirements of Global Automotive Regulation No. 157, which concerns the approval of vehicles with regards to Automated Lane-Keeping Systems.
Mercedes-Benz announced the accomplishment, calling it proof of the company’s “pioneering work in automated driving.” The German Federal Motor Transport Authority granted the approval.
“For many years, we have been working to realize our vision of automated driving. With this LiDAR-based system, we have developed an innovative technology for our vehicles that offers customers a unique, luxurious driving experience and gives them what matters most: time. With the approval of the authorities, we have now achieved a breakthrough: We are the first manufacturer to put conditionally automated driving into series production in Germany,” Member of the Board of Management of Daimler AG and Mercedes-Benz AG, Chief Technology Officer responsible for Development and Purchasing Markus Schäfer said.
Die Bedienelemente für den DRIVE PILOT sitzen im Lenkradkranz oberhalb der Daumenmulden rechts und links. Aktiviert der Fahrer den DRIVE PILOT, regelt das System Geschwindigkeit und Abstand und führt das Fahrzeug souverän innerhalb der Spur. // The controls for DRIVE PILOT are located in the steering wheel rim above the thumb recesses on the right and left. If the driver activates DRIVE PILOT, the system regulates speed and distance and guides the vehicle confidently within the lane.
DRIVE PILOT will first be available in Mercedes-Benz S-Class models in the first half of 2022. There will be initial limitations with the functionality’s ability, and drivers will only be able to drive at speeds of up to 60 km/h or 37 MPH on German highways. This will effectively limit the Level 3 system to operating in “heavy traffic or congested situations on suitable stretches of highway in Germany.” Regularly flowing traffic patterns at speeds that exceed the approved limits will require a normal driving operation.
Levels of autonomous driving have been outlined by the Society of Automotive Engineers (SAE). Level 3 Autonomy does not require humans to perform the act of driving. However, of the three levels that allow hands-free driving, which are Levels 3, 4, and 5, Level 3 is the only category in which the driver must take over if the vehicle requests human intervention. Level 3 is effectively described as a “traffic jam chauffeur,” which would align with the capabilities of the DRIVE PILOT system.
“During the conditionally automated journey, DRIVE PILOT allows the driver to take their mind off the traffic and focus on certain secondary activities, be it communicating with colleagues via In-Car Office, surfing the internet, or relaxing while watching a film. In DRIVE PILOT mode, applications can be enabled on the vehicle’s integrated central display that are otherwise blocked while driving,” the automaker wrote.
The system will initially be available on 8,197 miles or 13,191 kilometers of German highway. Mercedes-Benz said that it is working on completing extensive test drives in other markets, including the U.S. and China, so that it can launch DRIVE PILOT in countries outside of Germany.
DRIVE PILOT in der S-Klasse: Hochautomatisiertes Fahren auf Deutschlands Autobahnen // DRIVE PILOT in the S-Class: Conditionally automated driving on German freeways
DRIVE PILOT uses a LiDAR-based system for operation, but it also has a camera in the rear window and a microphone, which will both be used to detect approaching emergency vehicles by recognizing flashing blue lights and sirens. There is also a moisture sensor in the wheel well, used for detecting slippery or wet driving conditions. A digital HD map will transmit information regarding road geometry, route profile, traffic signs, and unusual traffic events, including accidents or road work, to DRIVE PILOT, helping it make informed and logical decisions throughout the vehicle’s operation.
Mercedes-Benz also said that it has implemented a safety system that will inform the driver of when the vehicle needs to be back in the control of a human. If the driver fails to take back control of the car for any reason, including medical emergencies, the vehicle’s braking system will bring the car to a stop in a controlled manner while also activating hazard lights. Mercedes-Benz has an emergency call system, which will automatically contact first responders, and the vehicle’s doors and windows will unlock for easier access for first responders.
Mercedes-Benz has been working to get DRIVE PILOT approved by regulators since mid-2021.
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In a major development that will inevitably strengthen Tesla’s dominant position in the American EV market, Polestar has been effectively banned from selling new vehicles in the United States, starting with the 2027 model year.
The U.S. Department of Commerce denied Polestar authorization under the Connected Vehicle Rule, which prohibits vehicles containing certain connected technologies (Cellular, Wi-Fi, Bluetooth, etc.) linked to China or Russia due to national security risks, including potential data collection on American drivers.
🚨 A Tesla competitor goes down
Polestar will no longer sell new vehicles in the United States starting with the 2027 model year.
The U.S. Department of Commerce denied the brand authorization under the Connected Vehicle Rule, which restricts the sale of cars with software and… pic.twitter.com/TrwnQeoiES
— TESLARATI (@Teslarati) June 25, 2026
Polestar, which is majority-owned by China’s Geely Holding, could not obtain the required exemption despite producing some models domestically.
Polestar confirmed it will sell off any remaining inventory of the Polestar 3 and Polestar 4 models, while continuing service and warranty support for existing customers. No new models or major refreshes will reach U.S. buyers, and the company is pivoting its growth strategy to Europe, where it already generates the vast majority of its sales.
The outcome removes a direct premium EV competitor that had positioned itself as a stylish, performance-oriented alternative to Tesla’s lineup. The Polestar 2 challenged the Model 3, while the Polestar 3 and 4 targeted segments overlapping with the Model Y and upcoming Tesla offerings. Polestar’s U.S. sales had already been sluggish amid intense competition and slower demand, representing just 6 percent of its global volume in the first quarter of 2026.
While Polestar was not on Tesla’s level in the U.S., it still places a dent in the evergrowing field of Tesla competitors in the country, where it has long dominated EV sales.
Tesla faces none of these hurdles. As a U.S.-founded and U.S.-headquartered company with major manufacturing in Fremont, Austin, and Nevada, Tesla’s vehicles are built with compliant domestic and allied supply chains. Its Full Self-Driving technology, over-the-air software updates, and vertically integrated ecosystem were developed entirely in-house without foreign ownership entanglements that trigger national security reviews, at least in the U.S.
Of course, it did face a similar threat in China a few years back:
Elon Musk responds to reports of Tesla ban among China’s military over security concerns
The Connected Vehicle Rule, first advanced under the prior administration and upheld under the current one, is part of a broader U.S. effort to protect the domestic auto industry and critical technology from Chinese influence. High tariffs on Chinese-made EVs and related restrictions have already reshaped the market. Tesla benefits directly: it avoids these barriers while continuing to lead in U.S. EV sales volume, Supercharger network expansion, and energy storage integration.
By clearing Polestar from the new-vehicle playing field, the policy reduces competitive pressure in the premium and performance EV segments where Tesla has invested billions. American consumers seeking cutting-edge electric vehicles now have one fewer option tied to foreign adversaries — and one clearer path to the market leader that has driven the EV transition from the start.
For Tesla, this is more than regulatory relief. It is a strategic tailwind that reinforces its position as America’s premier EV innovator at a time when domestic manufacturing and technological independence matter most.
Tesla Cybercab stands to gain from new rules that the Trump Administration is aiming to enforce on autonomous vehicles. On Thursday, NHTSA, under the Trump Administration’s U.S. Department of Transportation, commenced rulemaking on the Federal Motor Vehicle Safety Standards (FMVSS).
This effort aims to eliminate the mandate for manual brake pedals in vehicles that are designed to be driven exclusively by automated driving systems. This would impact the Tesla Cybercab, which the company has stated would operate without a steering wheel or pedals.
Tesla Cybercab launch is imminent after latest sighting at Giga Texas
The Trump Administration is looking to revise FMVSS No. 135, which requires standard braking systems on light-duty vehicles.
Currently, the regulation requires light-duty cars to use traditional manual braking systems that allow operators to slow the vehicle. With the advent of self-driving in the U.S., these regulations need updating, and these are the changes that could come to FMVSS No. 135:
- Removes requirements for hand- or foot-operated brake controls for vehicles designed never to be operated by a human. Existing rules still apply to AVs that retain manual controls.
- All subject vehicles must still meet the same stopping distance performance criteria via alternative testing procedures.
- While this update ensures AVs can physically stop when commanded, NHTSA is separately developing safety performance requirements for AVs in real-world driving scenarios.
- NHTSA will continue to use its broad defect enforcement authority to investigate unsafe ADS behavior and oversee recalls.
As autonomy becomes a greater part of passenger travel, these types of rule adjustments will be more than reasonable. It will give manufacturers the ability to self-certify their vehicles and avoid any red tape that could ultimately delay the deployment of these vehicles.
Administrators are also incredibly excited about the opportunity to play a role in the advancement of self-driving vehicles.
“We are at the cusp of the greatest technological revolution in vehicle technology since the innovation of the Model T,” NHTSA Administrator Jonathan Morrison said. “If we want America to lead the way, we have to reimagine our regulatory framework. That’s why under Secretary Sean Duffy’s AV Framework, NHTSA is tearing down pointless barriers to innovative designs while strengthening the fundamental safety requirements that matter and holding AV developers accountable for safe performance.”
The Cybercab entered mass production at Gigafactory Texas in April. Tesla ultimately plans to push the vehicle into its Robotaxi fleet, potentially when frameworks like these are established.
Tesla plans to boost production at its Gigafactory Berlin plant in Germany following a sharp rebound in sales and demand in Europe after a softer 2025.
The plans put Tesla in a better position to compete with strengthening companies in Europe and potentially other markets; demand indicators show Tesla is much better off than in 2025.
Last year was a tough year for Tesla in terms of overall demand in Europe. The company produced over 200,000 vehicles at the German plant last year, a soft figure compared to the 375,000 vehicles Tesla lists as its current capacity at the factory.
🚨 Tesla said this morning it will ramp up production at Gigafactory Berlin to a volume of 7,500 vehicles per week.
This is a 20 percent boost in production. Tesla will hire 1,000 new employees to help with the increase.$TSLA pic.twitter.com/kravKfRO5n
— TESLARATI (@Teslarati) June 25, 2026
Tesla’s overall European sales dropped significantly last year due to a variety of factors. However, sales are rebounding, and demand is strong once again, and only getting stronger. Tesla is now planning to bump production of Model Y vehicles at Giga Berlin upward by about 20 percent. It will also bring 1,000 new jobs to the plant.
Tesla confirmed the details of its planned production expansion in Germany this morning. It is a strategy to keep up with strengthening demand.
In Q1, Tesla saw a record 61,000 vehicles produced at Giga Berlin. European registrations rebounded sharply, with Model Y seeing 117 percent increases in March 2026 compared to last year. Germany alone saw stark increases, with a quadrupling in registrations to 9,252 units.
This trend continued in other key European markets, including France, Denmark and Sweden. Tesla registrations were up over 46 percent in some of these markets, and Model Y continued its trend as a top BEV in the market.
Demand has been recovering strongly in 2026, giving Tesla a reason to expand production efforts at the factory. These increases signal management’s confidence in sustained or growing European pull for Berlin-built vehicles.
One of Tesla’s biggest threats just got banned in the U.S.
Tesla Cybercab stands to gain from new Trump autonomy rules
