Mercedes-Benz to Launch Advanced Urban Self-Driving System in the U.S., Challenging Tesla FSD

Mercedes-Benz announced on Monday that it will introduce a new advanced driver-assistance system in the United States later this year, marking a major step forward in autonomous driving technology. The system, called MB.DRIVE ASSIST PRO, will allow Mercedes vehicles to operate autonomously on city streets under active driver supervision, expanding beyond the highway-focused systems common among most automakers.

The new technology enables vehicles to navigate complex urban environments, including driving from a parking lot to a chosen destination, handling city intersections, making turns, and obeying traffic lights. This positions Mercedes-Benz as a direct competitor to Tesla, which currently remains the only automaker in the U.S. offering city-street autonomous driving through its Full Self-Driving (FSD) package.

MB.DRIVE ASSIST PRO has already been available in China since late last year, giving Mercedes valuable real-world data and experience ahead of its U.S. rollout. In the United States, the system will be priced at $3,950 for a three-year term. Mercedes also plans to offer monthly and annual subscription options, with pricing details expected to be announced later. By comparison, Tesla’s Full Self-Driving costs approximately $8,000 as a one-time purchase or $99 per month via subscription.

Urban autonomous driving presents significant technical challenges due to unpredictable factors such as pedestrians, cyclists, and complex traffic scenarios. Like Tesla’s FSD, Mercedes’ system will still require drivers to remain alert and ready to intervene at all times, as full autonomy in personal vehicles remains constrained by safety concerns and regulatory oversight.

Mercedes stated that MB.DRIVE ASSIST PRO relies on around 30 sensors, including cameras, radar, and ultrasonic sensors, supported by a high-performance computer capable of processing up to 508 trillion operations per second. The system also supports over-the-air updates, allowing continuous improvements to autonomous driving features.

Additionally, Nvidia confirmed that the new Mercedes-Benz CLA, the brand’s first vehicle built on the MB.OS platform, will integrate Nvidia’s DRIVE AV software and AI infrastructure, further enhancing driver-assistance capabilities. Investors continue to view autonomous driving technology as a key long-term growth opportunity for automakers, as companies like Mercedes and Tesla push closer to broader commercial adoption.