Mercedes-Benz has beaten Tesla in the race to receive a green light to sell or lease cars with an automated driving system in California, Reuters reports.

The move means owners of vehicles with the system can turn it on while traveling on designated highways under certain conditions. California’s Department of Motor Vehicles approved the driving system, called Drive Pilot, on Thursday. Drive Pilot is ranked as a Level 3 system by the Society of Automotive Engineers (SAE).

While in use, Drive Pilot does all the driving but the driver needs to stand by to take control at a moment’s notice. This differs from “partial automation” Level 2 systems like Super Cruise, Ford’s BlueCruise, and Tesla’s Autopilot in that drivers are allowed to turn their head to talk to a passenger or play a game on the vehicle’s infotainment screen while Drive Pilot is in operation.

While allowing drivers to take their hands off the steering wheel and feet off the pedals, Tesla's Autopilot requires drivers to keep their eyes on the road at all times.

In its approval, the DMV said the Mercedes-Benz system can only operate on “suitable freeway sections where there is high traffic density” and at speeds at or under 40 miles per hour, which seems like it can only be used during slow-crawling or stop-start traffic. Mercedes plans to roll out Drive Pilot in the US for model year 2024 Mercedes-Benz S-Class and EQS Sedan models which land in late 2023.

The approval permit further excludes the system from operating on “streets, in construction zones, during heavy rain or heavy fog, on flooded roads, and during weather conditions that are determined to impact performance.” Owners of vehicles with the system must also watch a mandatory video explaining how to engage and disengage the technology before Mercedes-Benz will activate Drive Pilot.

In a statement responding to the approval, Dimitris Psillakis, President and CEO of Mercedes-Benz USA said: "We are extremely proud to continue our Level 3 conditionally automated driving leadership and remain at the forefront of innovation in the U.S. market with certification in California. This game-changing system underscores our ambition to lead in safety and technology, and provides unparalleled convenience for our valued customers by giving them back time while safely navigating today's congested freeways."

The move comes after Nevada became the first US state to give Mercedes permission to sell vehicles with the Drive Pilot system in January.