Google's commitment to SDCs has always seemed half hearted so I wonder if this indicates that they are getting more serious about it. Moonshots at X have been getting the axe, the SDC stuff seems to be the only obviously viable one right now.
To the surprise of many folks (myself included) it has turned out that SDC tech is probably for existing manufacturers to develop versus software guys learning how to build cars without the massive supply chains needed to assemble 4000lb widgets. Before anyone points to Tesla, try getting inside a $140k Tesla and then a $140k Mercedes and it will be obvious what advantages there are to having manufacturing experience stretching decades.
Tesla recovers a lot more of the individual vehicle cost as future R&D than Mercedes. That's probably a good thing as they are a start-up and Mercedes is a company delivering a few orders of magnitude more cars. Don't think it's a valid comparison though to say that Tesla is putting the money into tech and mercedes isn't.
Rather, Mercedes has access to better credit terms and availability than Tesla because they produce 100x more cars per year. And because of that, they don't need to recoup future R&D money from current cars. Ergo when you buy an expensive mercedes, more money goes into the car you bought than future cars.
I think mostly it is the fit and finish. I've been in a 2016 BMW 750i and a 2013 Model S, for about a total of maybe 30 minutes in the BMW and 10 in the Tesla.
The interior of the 7 series seemed special to me. All of the buttons felt great, seats looked beautiful and were super comfortable to sit in. The control panel had many small OLED displays and they looked great. And small details like when I went to adjust the seat, by placing my fingers on the buttons, information about my seat configuration popped up on the center console, so I could see what I was changing. Also the rear passenger seats and rear windshield had power sunscreens.
To the surprise of many folks (myself included) it has turned out that SDC tech is probably for existing manufacturers to develop versus software guys learning how to build cars without the massive supply chains needed to assemble 4000lb widgets. Before anyone points to Tesla, try getting inside a $140k Tesla and then a $140k Mercedes and it will be obvious what advantages there are to having manufacturing experience stretching decades.