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Tesla Model 3 wins hearts as famed NYC Taxi, picks up where Nissan Leaf couldn’t
Images of a Tesla Model 3 being used as a New York City taxi cab, complete with the fleet’s iconic yellow paint scheme, have started making the rounds online. The vehicle, which was sighted in Manhattan near a Tesla store, signifies what could very well be an upcoming shift towards sustainability for NYC’s taxi fleet. It also symbolizes a second chance of sorts for all-electric vehicles, especially considering the failure of the Nissan Leaf taxis in previous years.
Back in 2013, New York City launched a pilot program for all-electric taxis with a fleet of six first-gen Nissan Leafs. The vehicles were let loose in the city on Earth Day to much optimism and acclaim, but by 2015, the Leafs were decommissioned. In its final report, the NYC Taxi & Limousine Commission noted that the Nissan Leaf required drivers to significantly alter their driving habits due to the vehicles’ EPA-estimated 84-mile range. This handicap was highlighted further when the weather was hot, since the use of air conditioners was required for NYC taxis.
First Model 3 Taxi in NYC from r/teslamotors
The failure of the Leaf as a New York taxi was a cloud above all-electric cars until 2019, when reports emerged stating that the Tesla Model 3 had been approved for taxi service in the city. The all-electric sedan more than meets the minimum requirements for NYC cabs. These requirements include ample interior space, air conditioning for rear-seat passengers, seats that are easy to clean, and enough cabin space to install the clear partition that separates the driver from passengers in the backseat.
More importantly, the Model 3 does not have the same weakness as the first-gen Leafs from 2013. Unlike the 84-mile Leaf, the shortest-range Model 3 boasts at least 220 miles per charge, and that’s if customers specifically request for the non-Autopilot Standard Range version. Otherwise, the Standard Range Plus, the more affordable variant that could be ordered directly on Tesla’s website, offers an EPA-estimated range of 263 miles for $37,990. Autopilot also comes as a standard feature on variants from the Standard Range Plus and above.
Considering the power and range of the Tesla Model 3, there seems to be a good chance that the vehicle will not have the same feedback from taxi drivers as the first-gen Leafs from 2013. The Model 3, if any, would likely outperform the city’s other, conventional taxis, and its fast-charging capabilities through Tesla’s Supercharger Network would allow the vehicle to replenish most of its range while drivers take a brief break. The vehicle’s sizable cargo space from its trunk and frunk would likely be appreciated by commuters as well.
New York’s Tesla Model 3 taxi drivers would best be advised to take it easy on the all-electric sedan’s accelerator, however. Electric cars are famed for their instant torque, and the Model 3 is no exception, with even the Standard Range Plus variant having a 0-60 mph time that rivals muscle cars. If NYC taxi drivers develop a habit of punching the Model 3’s accelerator at every chance, history might end up repeating itself innumerable times. The first speeding infraction ever committed in the United States back in 1899, after all, was from a New York City cabbie who was driving 12 mph down Lexington Street in Manhattan, 4 mph above the legal speed limit at the time.
The NYC taxi driver, Jacob German, was driving a battery-electric car.
Elon Musk
Rumored SpaceX-xAI merger gets apparent confirmation from Elon Musk
The comment follows reports that the rocket maker is weighing a transaction that could further consolidate Musk’s space and AI ventures.
Elon Musk appeared to confirm reports that SpaceX is exploring a potential merger with artificial intelligence startup xAI by responding positively to a post about the reported transaction on X.
Musk’s comment follows reports that the rocket maker is weighing a transaction that could further consolidate his space and AI ventures.
SpaceX xAI merger
As per a recent Reuters report, SpaceX has held discussions about merging with xAI, with the proposed structure potentially involving an exchange of xAI shares for SpaceX stock. The value, structure, and timing of any deal have not been finalized, and no agreement has been signed.
Musk appeared to acknowledge the report in a brief reply on X, responding “Yeah” to a post that described SpaceX as a future “Dyson Swarm company.” The comment references a Dyson Swarm, a sci-fi megastructure concept that consists of a massive network of satellites or structures that orbit a celestial body to harness its energy.
Reuters noted that two entities were formed in Nevada on January 21 to facilitate a potential transaction for the possible SpaceX-xAI merger. The discussions remain ongoing, and a transaction is not yet guaranteed, however.
AI and space infrastructure
A potential merger with xAI would align with Musk’s stated strategy of integrating artificial intelligence development with space-based systems. Musk has previously said that space-based infrastructure could support large-scale computing by leveraging continuous solar energy, an approach he has framed as economically scalable over time.
xAI already has operational ties to Musk’s other companies. The startup develops Grok, a large language model that holds a U.S. Department of Defense contract valued at up to $200 million. AI also plays a central role in SpaceX’s Starlink and Starshield satellite programs, which rely on automation and machine learning for network management and national security applications.
Musk has previously consolidated his businesses through share-based transactions, including Tesla’s acquisition of SolarCity in 2016 and xAI’s acquisition of X last year. Bloomberg has also claimed that Musk is considering a merger between SpaceX and Tesla in the future.
Tesla analyst Gary Black of The Future Fund claims that the company is making a big mistake getting rid of the Model S and Model X. Instead, he believes another vehicle within the company’s lineup should be discontinued: the Cybertruck.
Black divested The Future Fund from all Tesla holdings last year, but he still covers the stock as an analyst as it falls in the technology and autonomy sectors, which he covers.
In a new comment on Thursday, Black said the Cybertruck should be the vehicle Tesla gets rid of due to the negatives it has drawn to the company.
The Cybertruck is also selling in an underwhelming fashion considering the production capacity Tesla has set aside for it. It’s worth noting it is still the best-selling electric pickup on the market, and it has outlasted other EV truck projects as other manufacturers are receding their efforts.
Black said:
“IMHO it’s a mistake to keep Tesla Cybertruck which has negative brand equity and sold 10,000 units last year, and discontinue S/X which have strong repeat brand loyalty and together sold 30K units and are highly profitable. Why not discontinue CT and covert S/X to be fully autonomous?”
IMHO it’s a mistake to keep $TSLA Cybertruck which has negative brand equity and sold 10,000 units last year, and discontinue S/X which have strong repeat brand loyalty and together sold 30K units and are highly profitable. Why not discontinue CT and covert S/X to be fully…
— Gary Black (@garyblack00) January 29, 2026
On Wednesday, CEO Elon Musk confirmed that Tesla planned to transition Model S and Model X production lines at the Fremont Factory to handle manufacturing efforts of the Optimus Gen 3 robot.
Musk said that it was time to wind down the S and X programs “with an honorable discharge,” also noting that the two cars are not major contributors to Tesla’s mission any longer, as its automotive division is more focused on autonomy, which will be handled by Model 3, Model Y, and Cybercab.
Tesla begins Cybertruck deliveries in a new region for the first time
The news has drawn conflicting perspectives, with many Tesla fans upset about the decision, especially as it ends the production of the largest car in the company’s lineup. Tesla’s focus is on smaller ride-sharing vehicles, especially as the vast majority of rides consist of two or fewer passengers.
The S and X do not fit in these plans.
Nevertheless, the Cybertruck fits in Tesla’s future plans. Musk said the pickup will be needed for the transportation of local goods. Musk also said Cybertruck would be transitioned to an autonomous line.
In a groundbreaking new report from Reuters, SpaceX is reportedly discussing merger possibilities with xAI ahead of the space exploration company’s plans to IPO later this year, in what would be a blockbuster move.
The outlet said it would combine rockets and Starlink satellites, as well as the X social media platform and AI project Grok under one roof. The report cites “a person briefed on the matter and two recent company filings seen by Reuters.”
Musk, nor SpaceX or xAI, have commented on the report, so, as of now, it is unconfirmed.
With that being said, the proposed merger would bring shares of xAI in exchange for shares of SpaceX. Both companies were registered in Nevada to expedite the transaction, according to the report.
On January 21, both entities were registered in Nevada. The report continues:
“One of them, a limited liability company, lists SpaceX and Bret Johnsen, the company’s chief financial officer, as managing members, while the other lists Johnsen as the company’s only officer, the filings show.”
The source also stated that some xAI executives could be given the option to receive cash in lieu of SpaceX stock. No agreement has been reached, nothing has been signed, and the timing and structure, as well as other important details, have not been finalized.
SpaceX is valued at $800 billion and is the most valuable privately held company, while xAI is valued at $230 billion as of November. SpaceX could be going public later this year, as Musk has said as recently as December that the company would offer its stock publicly.
The plans could help move along plans for large-scale data centers in space, something Musk has discussed on several occasions over the past few months.
At the World Economic Forum last week, Musk said:
“It’s a no-brainer for building solar-powered AI data centers in space, because as I mentioned, it’s also very cold in space. The net effect is that the lowest cost place to put AI will be space and that will be true within two to three years, three at the latest.”
He also said on X that “the most important thing in the next 3-4 years is data centers in space.”
If the report is true and the two companies end up coming together, it would not be the first time Musk’s companies have ended up coming together. He used Tesla stock to purchase SolarCity back in 2016. Last year, X became part of xAI in a share swap.
Rumored SpaceX-xAI merger gets apparent confirmation from Elon Musk
Tesla analyst claims another vehicle, not Model S and X, should be discontinued
