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Than why is Mercedes able to sell me a system where I can legally watch youtube, etc. while in traffic on a highway without being liable for anything happening and at least 10s until I have to take over control of the car while Tesla can't?

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Because it's a party trick that requires a vehicle in front for tracking and can only be used under 40 mph on the highway. It's a joke.

I can do the same thing. Why can Tesla offer FSD beta which can drive around on any roads while Mercedes can't?

It is not a party trick. It literally allows you to do anything while stuck in traffic, which is definitely not a rare occurrence. Meanwhile Tesla's FSD beta doesn't allow me anything I can't do with another car, as I still need to pay the same amount of attention and hold the same liability. Mercedes could offer a similar service, but won't as their assistants already offer a similar experience without the dangers of Tesla's FSD.

You've got that exactly backwards buddy. Tesla could easily offer the same thing, but why would they waste time with that BS? Mercedes 100% cannot offer full self driving on any street. What world are you living in?

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