...none of that answers the actual question.
He said L3 would require more government involvement. It factually does not- and Mercedes having an L3 on the road in at least one self-certifying state, without having required any more government involvment, is proof of that.
WHY Mercedes launched the system has nothing to do with the regulations in play.... (esp. when the OTHER state they have it in so far is CA, one of the few that actually does require real approval)
That's not to say Tesla might not get scrutiny from some government agency after launching L3. But they don't need "regulatory approval" to launch it in the first place.
They need to say:
It's capable of L3
We have insurance
It follows all traffic laws.
Trust Us Bro.
That's it. They do that, and it can go on the road today in many US states. And some more of them after they file a form that says the same thing.
No "regulators" are standing in the way of that.
Again there's nothing in the law requiring any specific sensors- so that's irrelevant to the discussion