It's almost like Mercedes has been doing this for a long time.
If you want to compete in a market, you got to play at the speed/quality/prices of the market -- there is no slack given for being new.
Their real risk is if the Model 3's reliability is bad or they need a recall thus reducing their profits significantly.
"The truth is the Model 3 costs $40,000 if you want a standard version with autopilot (an extra $5,000) in black with no other options. If you want a different color, add $1,000. And if you want a longer range ($9,000) to get over 300 miles per charge instead of 220, well now we’re at $50,000. $50,000 for a midrange car."[1]
[1] https://www.theverge.com/2017/7/31/16069960/tesla-model-3-no...
"Enhanced Autopilot adds these new capabilities to the Tesla Autopilot driving experience. Your Tesla will match speed to traffic conditions, keep within a lane, automatically change lanes without requiring driver input, transition from one freeway to another, exit the freeway when your destination is near, self-park when near a parking spot and be summoned to and from your garage."
You can get adaptive cruse control for more reasonable costs, but lane changing takes a lot more awareness around the car.
In the end, unless they get profitable, if they burn their stash, they're toast.