As for tires, no actually you can go much further than this. The big detail is wear and heat caused by tire softness and pressure. Road car tires can't enable 0-100KPH much faster than 1.9s or so purely because they can't be so soft as crusing on the highway would cause excess wear(practicality), heat (Danger), and friction(Range).
Drag Racers can accelerate way faster, 0-60MPH in .8s.
Edit - A lot of that comes from the rear wing though, which the green team didnt run for this particular event.
You can see the tire warmers in the video being removed in addition to their approach burnout which imparts additional heat into the tires, so that the tires more effectively stick to the ground.
For all of the questions about why they don't compete with dragster techniques, the student race series they participate in has very strict regulations regarding vehicle layout which forces them to be more of an autocross car, these kinds of (heavily couched) records being produced are really somewhat incidental.
Interestingly, this setup wouldn't be allowed due to rules in Formula SAE in the US but is legal in the german competition cause those teams are just built different.
Edit - Quick plug! If anyone is interested in supporting FSAE and the awesome engineering that goes into these cars, I am a member of the San Jose State team and our aero team is in need of HPC access to run their CFD simulations. My email is in my profile. Cheers.
Tires don't only rely on friction but also on mechanical grip (the road and the tire are not perfectly smooth surfaces, they interlock) and chemical grip (just like glue). The last two also scale with surface area as opposed to friction. So you get two common misbeliefs about tires from school physics: that you can't go over 1g and it doesn't matter how large the contact patch is. Both false in practice.
Drag racers can do 3gs, but that's at higher average speed.