Let me play devilds advocat for a sec here.
This EQS has software features Tesla can only dream of (Multi-User-Screen Support with spacial audio, Navigation features etc ... ) and yes the Tab S4 is a bummer, but maybe there are reasons for this bad choice like licencing, time-to-market we don't see?
It's not like Tesla ships crap early on sometimes and replaces it with better choices later - I'm looking at my Baolong TPMS, my v0.9 sunroof etc ...
IMHO the real question is not wether Daimler can catch up Tesla or the other way around - the question is scale and profitability - I am looking forward to see if Daimler can earn money on this 107kwh EQS - because if they can't why should they sell EQS over S-Class at all? (I know the answer - they need to go electric in certain markets)
Let me put my German lense on for a sec - we have a group of buyers that want 100k€+ premium EVs to drive fast in comfort on the Autobahn - Tesla has owned this market so far and with all the Model S issues and ongoing lawsuits Tesla is working hard on loosing that niche - this EQS seems to be great for the middle distance Autobahn driver.
I think more EVs and some competition are a good thing.
But companies who makes ICE cars will find their EV offerings need to be better than their ICE cars, because Tesla will be better.
Sometimes a local company better understands what local customers, want. This is one reason why IMO Tesla is being smart opening design centres in China and Germany, they can tap a different perspective and target products better to the local market.
I do think the Plaid+ Model S is going to tick most of the boxes for Autobahn driving, it will certainly be better than earlier versions of Model S.
What people are sometimes overlooking is the significance of Battery Day combined with the Berlin and Austin factory builds, Tesla is poised to scale production rapidly. Daimler will close the gaps on EV technology and software, closing the gap on production volumes, FSD, and fast charging is much harder.
As a non-German, my perspective is VW is doing a good job, and are going to carve out a good EV market share. Daimler has long been recognised for engineering excellence and product reliability. I don't doubt the quality of their products, but I do wonder about market share. I think they will have enough market share to survive, but may end up with significantly less market share than today.
I say this because I think it is a race for EV market share, carving out a large EV market share early, delivers a lot of advantages.