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A Giant Game of Telephone: The Revel Tesla Model Y Taxi Situation Explained

Credit: Revel

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This is a preview from our weekly newsletter. Each week I go ‘Beyond the News’ and handcraft a special edition that includes my thoughts on the biggest stories, why it matters, and how it could impact the future.


Earlier this week, there was plenty of talk about the Revel taxi fleet in New York City, comprised of 50 Tesla Model Y all-electric crossovers that would contribute to the ride-sharing services that the Big Apple has long been accustomed to over the past century. As the automotive sector has transitioned to a more sustainable look and feel, taxi companies are also putting their hand in the cookie jar, adding sustainable vehicles to their fleets, and taking gas-powered machines off the road.

Revel is an independent company attempting to make this happen. The company has 50 Model Y taxis ready to take on the streets of Manhattan and the other boroughs of New York. However, reports circulated earlier this week that the New York City Taxi and Limousine Commission blocked this possibility overwhelmingly with a five-to-one vote.

New York City Taxi and Limousine Commission: A Giant Game of Telephone

While the reports from various media outlets, including our own, highlighted the spectacle, which seemed to be an incredible chance of corruption, there was actually a huge misunderstanding. New York City TLC’s Deputy Chief of Public Affairs, Allan Fromberg, took some time out of a busy Thursday to talk to me, clarifying the situation that has been misconstrued since its original report.

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Tesla Model Y taxi fleet successfully blocked by NY commission

After getting in touch with Mr. Fromberg on Thursday, we talked about the initial reports. “The whole narrative that Revel would have to buy 50 gas cars to then convert to EVs is just a giant game of telephone. In fact, for Revel to bring on its 50 BEVs, they would have to replace 50 existing, already-licensed vehicles, and not new vehicles.”

Initial reports indicated that TLC Commissioner Aloysee Heredia Jarmoszuk stated that congestion was why Revel wasn’t granted licenses. In fact, this is true. Revel was never required to purchase 50 gas vehicles, which didn’t make much sense from the get-go. In my initial communication to Mr. Fromberg, I stated that the contradictory nature of the TLC’s implied decision to block Revel’s Model Y fleet because of congestion, but then suggest 50 additional gas-powered vehicles needed to be purchased didn’t make much sense.

Fromberg agreed and said that this misconception was due to the aggregation of media reports looking to push out this controversial angle of the story quickly.

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Mr. Fromberg then explained what the vote on Tuesday evening entailed, straight from the TLC Commissioner’s mouth.

2018 Legislation: The Taxi Cab “Cap”

Ms. Jarmoszuk said:

“First and foremost, no one and no entity has been blocked. The public meeting/vote was neither about electric vehicles nor about any particular company nor about car models. Rather, the public meeting was about vehicle licenses, which are presently capped since the market is saturated and distressed, with low performance as a result of the pandemic and previous market stressors. Presently, there are nearly 100K vehicle licenses, which is too large a supply for current passenger demand. The public meeting was about ensuring mechanisms to properly manage applications for new/additional licenses against current ridership numbers/needs.”

This is actually in reference to series of five pieces of legislation that were passed in 2018. According to the New York City Office of the Mayo, on August 14th, 2018, Mayor Bill de Blasio signed the following pieces:

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144-B: Requiring the TLC to stop issuing for-hire vehicle licenses for 12 months, to study congestion and various aspects of the industry, and after the study, allows the TLC to establish vehicle utilization standards and regulate the number of for-hire vehicle licenses;

634-B: Waiving licensing fees for accessible taxi-cabs and for-hire vehicles;

838-C: Pertaining to the licensing and regulation of high-volume for-hire vehicle services;

890-B: Directs the TLC to establish rules to provide minimum payments to high-volume for-hire vehicle drivers;

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958-A: Reducing penalties for unauthorized street hails.

Really, 144-B, 634-B, 838-C, and 890-B are the four pieces that are relevant to this story. In 2018, 144-B halted the licensing of any additional “For-Hire” vehicles, meaning taxis or ride-hailing vehicles. Simply put, there was an incredible number of vehicles on the streets of New York, and congestion was becoming a real issue there. The “cap” limit on the number of vehicles was enforced in 2018 and was set to last one year. Mr. Fromberg informed me that this legislation has been extended and renewed several times and is still effective to this day. Therefore, the City still will not license any additional vehicles. When one fails or loses its license, a new vehicle takes its place.

There are several other reasons for this, including fair wages for drivers and affordability for taxi companies. But, unfortunately, drivers were suffering and still are due to the COVID-19 pandemic. While many of the economic negativities are finally beginning to subside, 2020 was an ugly year for the NYC taxi sector. Many drivers weren’t making enough money to afford loan payments on medallions. Unfortunately, some of these drivers took their own lives, and it is an absolute tragedy that this occurred.

With that being said, taxi drivers are hard-working, and they deserve to make enough money to feed their families. In the 2018 passing of these legislative pieces, De Blasio said, “We’re putting hardworking New Yorkers ahead of corporations. We are taking immediate action for the benefit of more than 100,000 hard-working New Yorkers who deserve a fair wage and halting the flood of new cars, grinding our streets to a halt.” The changes increased take-home pay for drivers by approximately 20 percent on average — more than $6,000 per year.

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With all of that being said, New York City is operating with a substantial number of taxis, and the TLC has granted nearly 100,000 vehicle licenses. Before any more vehicles can obtain one of these licenses, some of the current vehicles must lose their licenses through expiration or vehicle removal in a company’s fleet. When 50 licenses open up, Revel will have the ability to obtain them, giving the company full rights to operate as a ride-sharing service, just as it aims to do.

To Mr. Fromberg’s knowledge, there would be no cost for Revel to go through the normal administrative procedure to obtain the licenses.

Revel’s Response: EV Taxis are a necessity to NYC

Revel CEO Frank Reig is under the impression that the TLC is operating under “shortsighted bureaucracy and entrenched interests,” according to a Tweet from Wednesday night.

After the Tuesday hearing, Reig said:

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“At today’s hearing, the Taxi and Limousine Commission offered no evidence or analysis to support ending the EV exemption. The Commissioners sat through almost 3 hours of testimony on all sides yet asked zero questions and spent zero time deliberating before making a policy decision with profound consequences. The TLC never intended to consider what drivers and New Yorkers had to say, and only cared about jamming through this vote on Primary Day with as little scrutiny as possible. This decision doesn’t change the fact that New York City needs an alternative to the predatory leasing system that exploits drivers and pollutes our environment, and Revel is exploring ways to accomplish that.” 

Revel told Teslarati earlier today that it is aware that the TLC is not recommending the purchase of 50 gas-powered cars. The company is also aware that the TLC has capped the number of licenses it would issue. In order to encourage the adoption of electric cars, Revel spokespeople said that additional licenses would be given to wheelchair-accessible vehicles and EVs. A few hundred EVs have been added to the NYC Taxi fleet in the past two years, but these cars only account for .5% of the total number of For-Hire vehicles on NYC’s streets.

Tesla Model 3 wins hearts as famed NYC Taxi, picks up where Nissan Leaf couldn’t

This rule is brought up every six months and was last addressed and subsequently renewed in February. That means that it was due for review in August. However, the TLC brought the issue to light early and revoked the rule. The TLC says that if Reval wants to operate a rideshare service with its fleet of 50 Model Ys, they will have to obtain the licenses from displaced and no-longer-active taxis in the city.

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Revel states that it would take two to three additional vehicles off of the street because the company will hire TLC-licensed drivers, who will no longer lease gas-powered vehicles. In addition, revel owns the vehicles, and different drivers will use the same car through different shifts, which could become a long-term advantage for the TLC as fewer cars will be on the street.

This would also line up with the Legislature items 634-B and 890-B, which would alleviate short-term leases and provide drivers with guaranteed wages, benefits, and vacation time.

The Bottom Line

The issue is this: Congestion is a real issue in the city. And while EVs only making up .5% of the total taxi fleet in the Big Apple, there is evidently no room for more vehicles, of any kind, in the City. Over time, the concentration of EV Taxis in the City that Never Sleeps will surely rise, but the existing vehicles need to be removed from the licensing pool before Revel can unleash its 50 all-electric Model Y taxis.

To summarize it easily, Fromberg said: “The TLC is fully committed to a 100% electrified future, just not at the cost of additional congestion.”

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A big thanks to our long-time supporters and new subscribers! Thank you.

I use this newsletter to share my thoughts on what is going on in the Tesla world. If you want to talk to me directly, you can email me or reach me on Twitter. I don’t bite, be sure to reach out!

-Joey


On behalf of the entire Teslarati team, we’re working hard behind the scenes on bringing you more personalized members benefits, and can’t thank you enough for your continued support!

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Joey has been a journalist covering electric mobility at TESLARATI since August 2019. In his spare time, Joey is playing golf, watching MMA, or cheering on any of his favorite sports teams, including the Baltimore Ravens and Orioles, Miami Heat, Washington Capitals, and Penn State Nittany Lions. You can get in touch with joey at joey@teslarati.com. He is also on X @KlenderJoey. If you're looking for great Tesla accessories, check out shop.teslarati.com

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Elon Musk’s $10 Trillion robot: Inside Tesla’s push to mass produce Optimus

Tesla’s surging Optimus job listings reveal a company sprinting from prototype to one million robot production.

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Tesla is accelerating its push to bring the Optimus humanoid robot to high volume production, and its recent job listings tells the story as clearly as any earnings call.

With well over 100 Optimus related job openings now posted across its U.S. facilities, Tesla is signaling a critical pivot for the program, moving it from a captivating tech demo to a serious manufacturing endeavor. Roles span the full spectrum of the product lifecycle, from Robotics Software Engineers and Manufacturing Engineers to Mechanical Integration Engineers and AI Engineers focused on world modeling and video generation. One active listing for a Software Engineer on the Optimus team asks candidates to build scalable and reliable data pipelines for Optimus manufacturing lines and develop automation tools that accelerate analysis and visualization for mass manufacturing.

Tesla is racing toward a one million unit annual production target. The clearest signal yet that Tesla is treating Optimus as its primary business came on January 28, 2026, during the company’s Q4 2025 earnings call. Musk announced that Tesla is ending production of the Model S and Model X, and will repurpose those lines at its Fremont, California factory to build Optimus humanoid robots.

A production intent prototype of Optimus Version 3 is planned to be ready in early 2026, after which Tesla intends to build a one million unit production line with a targeted production start by the end of 2026. To support that ramp, Tesla broke ground on a massive new Optimus manufacturing facility at Gigafactory Texas in late 2025, with ambitions to eventually reach 10 million units per year.

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Tesla Giga Texas to feature massive Optimus V4 production line

The business case for scaling this aggressively is rooted in labor economics. Musk has stated that “Optimus has the potential to be the biggest product of all time,” reasoning that if Tesla can produce capable humanoid robots at scale and reasonable cost, every task currently performed by human labor becomes a potential application. In a separate statement, Musk framed Optimus’s long term importance even more bluntly, saying it could surpass Tesla’s vehicle business in scale with the potential to generate $10 trillion in revenue.

The industries Tesla is targeting first are those most burdened by repetitive physical labor. Early applications include manufacturing assembly, material handling and quality inspection, as well as logistics tasks like loading, unloading, sorting, and transporting goods in warehouses and distribution centers. Longer term, Tesla’s vision is for Optimus to penetrate household, medical, and logistics scenarios at the scale of a smartphone rollout.

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Tesla officially begins sunset of Model S and Model X

In the latest move to show Tesla is planning to eliminate the Model S and Model X from production, the company’s Korean arm has officially set a firm cutoff date of March 31, 2026, for new orders of both models.

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Credit: Tesla

Tesla has officially started its process of sunsetting the Model S and Model X just months after the company confirmed it would stop producing the two flagship vehicles in 2026.

This step marks the end of an era for the vehicles that helped establish not only Tesla’s prowess as an automaker but also its status as a disruptor in the entire car industry. While these two cars have done a tremendous amount for Tesla, the signal that it is time to wind down their production has evidently arrived.

In the latest move to show Tesla is planning to eliminate the Model S and Model X from production, the company’s Korean arm has officially set a firm cutoff date of March 31, 2026, for new orders of both models.

This is the first time Tesla has announced a hard global deadline for the Model S and X, as after that date, only existing inventory will be available in South Korea.

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The move to bring closure to the Model S and Model X aligns with CEO Elon Musk’s plans for Tesla moving forward. During the Q4 2025 Earnings Call in January, Musk said the two cars deserved an “honorable discharge” for what they have done for the company.

The long-running programs are primarily being removed so that manufacturing lines can be repurposed for high-volume manufacturing of the Optimus humanoid robot. Tesla is targeting a production rate of up to one million units each year.

The Model S and Model X being removed from Tesla’s plans is a tough choice, but it was one that was written on the wall. Sales of these premium models have declined sharply in recent years, and even with Plaid configurations that are performance-forward, the company still has had trouble getting them sold.

In 2025, the Model S and Model X together accounted for roughly 3 percent of Tesla’s global deliveries, down significantly from prior periods as competition intensified in the luxury EV segment and buyers shifted toward more affordable options like the Model 3 and Model Y.

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The Model S saw sales drop over 50 percent year-over-year in some quarters, while the Model X faced similar pressures from rivals, including the Rivian R1S and BMW iX.

Despite their dwindling volume, the Model S and Model X remain technological showcases. The Plaid variants deliver blistering acceleration, advanced Full Self-Driving capability, and luxurious interiors.

The phase-out paves the way for Tesla’s strategic pivot toward autonomy, robotics, and higher-volume vehicles.

Tesla brings closure to flagship ‘sentimental’ models, Musk confirms

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Fremont will continue producing the refreshed Model 3 and Model Y, ensuring the factory remains a key automotive hub while expanding into robotics. Tesla has stated that the shift is not expected to result in job losses and could increase headcount as Optimus production ramps up.

For Tesla fans, the sunset represents a bittersweet moment. The Model S, introduced in 2012, proved EVs could compete with luxury sedans, while the Falcon-wing-door Model X set new standards for family haulers. Owners can expect continued software support and service for years to come.

Many fans have pushed for the Model X to hang around due to its appeal for families.

With the two cars heading out, Tesla’s priority now becomes its future products, especially that of the Optimus robot, which is the main reason for the S/X platform’s conclusion.

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Tesla shows off mysterious vehicle at Giga Texas

The mysterious structure, partially unboxed amid construction materials, has sparked widespread speculation among Tesla enthusiasts and analysts. Many are convinced it is the long-rumored Model Y L, the extended-wheelbase variant already popular in China, now arriving in Texas for potential U.S. production.

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Credit: Joe Tegtmeyer | X

Tesla seemingly showed off a mysterious vehicle at Giga Texas, one that seems to be completely different than anything the company currently makes for the U.S. market.

The vehicle, which was spotted on the plant’s property, appears to be similar to the Model Y L that has not yet launched in North America, and is currently built at Gigafactory Shanghai in China.

Drone pilot Joe Tegtmeyer captured intriguing footage at Tesla’s Giga Texas on March 23, 2026, revealing what appears to be a large, blue plastic-wrapped vehicle body resting inside a wooden shipping crate outdoors.

The mysterious structure, partially unboxed amid construction materials, has sparked widespread speculation among Tesla enthusiasts and analysts. Many are convinced it is the long-rumored Model Y L, the extended-wheelbase variant already popular in China, now arriving in Texas for potential U.S. production.

The images show an elongated silhouette that stands out from standard Model Y bodies. Side-by-side comparisons shared in replies to Tegtmeyer’s post highlight key differences: the rear door extends farther over the wheel arch than on a regular Model Y, and the rear glass appears to run all the way to the spoiler lip without the metal trim seen on shorter versions.

One overlay analysis noted that the visible proportions align precisely with the Chinese-market Model Y L, which measures approximately 4.98 meters long with a 3.04-meter wheelbase, which is about seven inches longer overall than the standard Model Y sold in the U.S.

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The vehicle is a bare “body-in-white” shell, typical of prototypes sent abroad for tooling validation and local manufacturing ramp-up. Tesla has already launched the six- and seven-seat Model Y L in China and other markets, where it offers roughly 10% more cargo space and greater family-friendly versatility.

This sighting fits Tesla’s broader strategy. Industry observers expect the company to localize Model Y L production at Giga Texas by mid-2026 to serve American families seeking extra room without stepping up to the larger Cybertruck or a future full-size SUV.

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Bringing the design stateside could add tens of thousands of annual deliveries while leveraging existing Model Y lines. People have been adamant that they want the Model Y L in the U.S., especially as Tesla plans to fade the Model X, the company’s most ideal vehicle for large families, out of production in the near future.

Tesla Model Y lineup expansion signals an uncomfortable reality for consumers

While Tesla has made no official comment, the timing, amid Giga Texas expansion and steady Model Y output, suggests the mysterious crate is more than a random prototype.

If confirmed as the Model Y L, it marks another step in Tesla’s effort to refresh its bestselling SUV for global demand. The vehicle would perform exceptionally well in the U.S., and despite the company’s rather mute stance on bringing it to America, this might be the biggest hint to date that it could be on the way.

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