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I didn't get that impression. Paragraph two says they have "the most advanced self-driving software ever demonstrated," which has been in use driving cars around in real city traffic on their prototypes or whatever (according to their youtube videos), but the article seems to be saying that they now have designed and built mass-producible cars that can run the software. (If I'm wrong, then yeah, not only the title but the whole article is misleading.)

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I guess the hedge-word there is "demonstrated". I'm not sure if Waymo et al have ever demonstrated their most advanced software to the public.

Paragraph 2: "today, we’re unveiling the world’s first mass-producible car designed to operate without a driver"

Implies L5

Paragraph 3: "The car we’re unveiling today is actually our 3rd generation self-driving car"

ie L3, you need a driver paying attention like in a Tesla(?)

No, paragraph 3 means it's the third iteration of their hardware. That's unrelated to the self-driving "levels".

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