It is sad to see how many people in this thread will assume the absolute worst with respect to Tesla's FSD capabilities and then will accept this Level 3 announcement from Mercedes in the most charitable way possible. It requires little effort to achieve Level 3 in extremely constrained situations. For example, it would be almost trivial for any autonomy company to achieve "Level 3" at 5 miles per hour within a specific geography. 40 MPH with all of the other limitations of this system is simply not very interesting.
It seems many people in this thread are highly motivated by prior bias toward the negative on Tesla; far more than those of us who appreciate what Tesla is doing.