The luxury automaker Mercedes-Benz has made two significant moves in the field of autonomous driving within a matter of days, signaling a strategic push to accelerate its software-defined vehicle capabilities. The company announced an investment in the UK-based AI startup Wayve and expanded its existing collaboration with the Chinese technology provider Momenta. These steps represent more than mere publicity; they underscore the firm’s challenge of deploying advanced driving functions at scale while maintaining control over its core platform strategy.
This strategic balancing act is reflected in a somewhat sluggish market performance. The share price closed at €59.03 on Thursday, representing a decline of approximately 4.7% from its 52-week high of €61.93. Technical indicators also show a Relative Strength Index (RSI) reading of 36.3, pointing to recently weaker momentum for the stock.
Financial Backdrop and Shareholder Returns
This intensified focus on technology comes against a backdrop of shifting financials. For the 2025 fiscal year, Mercedes-Benz reported a decline in key metrics: adjusted EBIT fell to €8.2 billion (from €13.7 billion the previous year), while group revenue decreased to €132.2 billion (from €145.6 billion). The industrial business free cash flow was €5.4 billion, down from €9.2 billion a year earlier.
Looking ahead to 2026, management anticipates revenue at a similar level to the prior year, a significantly higher group EBIT—partly due to restructuring charges in 2025—and a slightly lower free cash flow. The Mercedes-Benz Cars division is forecast to achieve an adjusted return on sales of between 3% and 5%.
Despite these figures, the company remains committed to returning capital to shareholders. A share buyback program of up to €2 billion, initiated in November 2025, is ongoing. During the week of February 16-20, the company repurchased 719,016 shares, bringing the total since the program’s start to 10,743,005 shares. Furthermore, a dividend of €3.50 per share (down from €4.30 the previous year) has been proposed for the Annual General Meeting scheduled for April 16, 2026.
Strategic Partnership with AI Startup Wayve
On February 25, Wayve announced the closure of a $1.2 billion Series D funding round, which reportedly gives the company a post-money valuation of $8.6 billion. Mercedes-Benz is among the automakers, alongside Nissan and Stellantis, participating directly for the first time. Other notable investors include Microsoft, NVIDIA, Uber, and the SoftBank Vision Fund 2.
Wayve is developing a hardware-agnostic autonomous driving platform built on an end-to-end AI foundation. The startup plans to commence commercial robotaxi testing with Uber in London starting in 2026. By 2027, it aims to offer its “AI Driver” software for consumer vehicles, initially as a Level 2+ system for supervised autonomous operation.
For Mercedes-Benz, this investment represents a strategic tightrope walk. The company is concurrently developing its own in-house operating system, MB.OS. This dual approach naturally raises questions about delineation: where will the automaker rely on its proprietary software stack, and where will it integrate licensed components?
Deepening Ties in China with Momenta
Just one day later, on February 26, further news emerged. A jointly developed advanced driver-assistance system (ADAS) with Momenta is slated for integration into nine Mercedes-Benz models in the Chinese market. These models will include the electric GLC SUV and the S-Class sedan. Reports indicate the system has undergone testing in Beijing, serving as a visible signal of Mercedes-Benz’s intent to leverage research and development activities in China for global innovation.
This direction aligns with the “Strategy Update 2026” presented by Mercedes on February 12 alongside its annual results. Within that framework, China is designated as one of five strategic focus areas, encompassing deeper localization efforts as well as technology and product offensives.
The Road Ahead
In summary, Mercedes-Benz is pursuing a dual-track strategy for autonomous driving: accessing global AI expertise through Wayve while accelerating market-specific implementation in China via Momenta. This technological push runs parallel to a steadfast commitment to shareholder returns through buybacks and dividends. The next concrete milestone for assessing this overall strategy will be the release of the first-quarter 2026 financial results on April 29, 2026.
