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Tesla Model 3 adopted by German taxi operator over mass savings in fuel and maintenance costs

(Photo: Hojabr Riahi/Bild)

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6 years ago

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Tesla Model S taxis now roam the streets of Dusseldorf as local operator Taxi Norman added two electric vehicles to its fleet, with plans to add 50 Model 3 emission-free taxis in the next few weeks.

While the company spent 105,000 euros for each of the Model S taxis and 45,000 euros each for the Tesla Model 3 units, the German operator began the switch to a green fleet not only to be more environment-friendly but to boost profits as well. With the support of the local government, Taxi Norman will only spend around 35 euros ($38) to charge each Tesla taxi a month compared to 750 euros ($830) of fuel per month for each of its diesel units. Overall, it can save the company around 36,000 euros (around $39,000) when the fuel expenditure of internal combustion taxis is compared to the cost of charging the same number of electric vehicles.

Aside from saving on fuel expenses, Taxi Norman will also save its bank account from maintenance costs.  “The cars are also much easier to care for. An old car costs us 6,000 euros ($6,600) a year. The expenses are now gone. We also save on fuel costs through cheaper electricity, ” said Managing Director Erol Norman.

Likewise, customers welcome the development. “Anyway, my drivers are totally satisfied. Customers are so enthusiastic about the driving experience in the electric car that they give higher tips. One received a tip of ten euros for a trip that cost seven euros,”  Norman added.

The investment in a greener taxi fleet is highly appreciated by the local government. Local Council member and Chairman of the Environment Committee Philipp Tacer promised to initiate taxi regulations that will further benefit the likes of Taxi Norman that invests in electric taxis. The local government plans to build taxi stops that will be exclusive for electric taxis

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Taxi Norman operates a fleet of 150 vehicles in Dusseldorf and plans to complete the switch to electric taxis by 2023.

Looking at the overall picture, Germany has an ambitious goal of cutting its greenhouse gas emissions by 40 percent compared to the 1990 levels come 2020 and one of its core strategies is to increase the share of renewable energies in total energy consumption. One crucial step in this strategy is to raise its renewable energy use in the transport sector.

While Germany delayed its goal of having one million electric vehicles on the road by 2020, the government shows great support for those who want to purchase EVs. Under a new agreement between the government and the car industry, Germany increased the subsidies for cars costing around $44,500 to around $6,700 from around $4,500. Incentives for pricier electric cars were also increased by 25%, however, EVs over 60,000 euros are not supported by the said program.

In the EU, the country is one of the frontrunners in the production of electric vehicles per capita. One can only expect a good boost in this aspect when Tesla begins the production of electric vehicles in its upcoming Gigafactory 4 in Brandenburg. The electric car manufacturer is just awaiting the last hurdles before clearing activities on the approved site begin.

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Tesla creates clever solution to simplify and improve its Service

Raj Jegannathan, a Vice President of IT/AI-Infra, Apps, Infosec, and Vehicle Service Operations, revealed that Tesla has started a small pilot program at a few service locations to combat this issue.

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5 hours ago

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August 7, 2025

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tesla service
Credit: Tesla

Tesla has created a clever solution to simplify and improve its Service. Tesla performs most of the services that are needed on its vehicles at its company-owned Service Centers.

However, service has been a weak point of the company, as some regions have fewer Service Centers than others. This can cause long wait times for Tesla owners in some parts of the country.

There are also instances where customers do not agree with what Tesla is saying about their vehicle. In fact, one instance that revealed this new change Tesla is making to its Service was precisely that.

One owner posted on X that his vehicle’s battery seal had failed after a recall was issued. Tesla insurance and Tesla Service both did not assist, and it took CEO Elon Musk stepping in to get the issue resolved:

Another owner suggested there should be a more streamlined communications process between the customer and the Service Center, a solution that has been missing.

Raj Jegannathan, a Vice President of IT/AI-Infra, Apps, Infosec, and Vehicle Service Operations, revealed that Tesla has started a small pilot program at a few service locations to combat this issue.

Elon Musk wants Tesla Service to fix two-thirds of cars in the same day

Jegannathan said that Tesla has started to share local and regional leader contact information so customers have the ability to reach out when they have complaints or disagree with warranty claims, changes in estimates, or initial diagnostics.

It is available in a handful of locations already, and Jegannathan said that once abuse guardrails are built, this will expand to all locations:

This would be a major improvement in the Service portion of Tesla’s business. There are common disagreements between Service and customers, specifically when Service’s suggestions don’t align with the customer’s beliefs.

When it comes to things like a warranty claim, these issues are not really up for interpretation. Instead, the repairs should be made. If there is a misunderstanding on Service’s side, a simple message from the customer could have resolved the issue. That’s basically what happened here.

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Investor's Corner

Tesla gets its best analysis from Morgan Stanley as ‘it’s all about to change’

He maintained its ‘Overweight’ rating and the $410 price target Morgan Stanley had on the stock.

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6 hours ago

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August 7, 2025

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(Credit: Tesla)

Tesla has gotten perhaps its best analysis from Morgan Stanley in quite some time, as the Wall Street firm claims that “it’s all about to change.”

That phrase could be used for both the company’s status and the world in general.

Analyst Adam Jonas said in a new note on Thursday to investors that Tesla could be one of the major winners in terms of the global transition from what it is now to what it will be.

He describes the global shift that will occur over the next few years:

“Have you interacted with a robot today? Have you even seen a robot today? No? Well, take a mental picture because it’s all about to change. When we meet someone who has never been in a Waymo or a Tesla Cybercab (which is most people), we frequently see a wince and a response such as ‘I’m not sure I’d feel comfortable getting in a car without a driver.’ We imagine going back in time to 1903 and asking people if they’d feel comfortable in an airplane.'”

The same technological revolutions that have occurred over the past 150 years will continue to occur again and again. We are on the verge of another, Jonas believes, as companies like Tesla are working on artificial intelligence tech, which includes changing the way we look at things like transportation and labor.

Jonas includes an interesting tidbit in his note about how humanoid robots could change wages, and how it could work into the advantage of Tesla, especially as it is developing its own Optimus robot:

“We estimate 1 humanoid robot at $5/hour can do the work of 2 humans at $25/hour, generating an NPV of approximately $200k/humanoid. 1 robot shaped car can potentially drive down cost/mile of a ride share vehicle to <$0.20 mile (1/10th human-driven ride-share).”

Jonas sees Tesla as a key player in how AI will impact things like manufacturing and various automotive industries, and he believes there is long-term potential for AI, robomobility, and even autonomous eVTOL platforms.

Tesla stock: Morgan Stanley says eVTOL is calling Elon Musk for new chapter

He maintained its ‘Overweight’ rating and the $410 price target Morgan Stanley had on the stock.

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Elon Musk

Tesla expands Robotaxi program in Austin to new riders

Tesla has been expanding both the rider group and the geofence in Austin slowly, making sure to prioritize safety and avoid any major events with the early rollout.

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6 hours ago

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August 7, 2025

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Credit: @TerrapinTerpene/X

Tesla is expanding its Robotaxi program in Austin, Texas, as several people have received invitations to participate and take rides.

Tesla first launched the Robotaxi platform on June 22. It invited a handful of people to participate in the first-ever public rides. We were lucky enough to get an invitation, and our permissions have been expanded in the Bay Area pilot program as well.

The group was small and consisted of big names in the Tesla community. It expanded and is continuing to offer these exclusive invitations to notable members of the Tesla community.

There have been fewer than five subsequent invitations after the first group’s were sent in late June:

Tesla has been expanding both the rider group and the geofence in Austin slowly, making sure to prioritize safety and avoid any major events with the early rollout.

Tesla’s new Robotaxi geofence shape is an FU by Elon Musk to the competition

“We are being very cautious. We do not want to take any chances, so we are going to go cautiously. But the service areas and the number of vehicles in operation will increase at a hyper-exponential rate,” CEO Elon Musk said during the Q2 Earnings Call.

Eventually, the Robotaxi platform will not require an invite, and it will operate without geofences. Musk believes Tesla can get there within three or six months, and plans to have at least half of the U.S. population with access to a Robotaxi by the end of the year:

“I think we will probably have autonomous ride-hailing in probably half the population of the U.S. by the end of the year. That’s at least our goal, subject to regulatory approvals. I think we will technically be able to do it. Assuming we have regulatory approvals, it’s probably addressing half the population of the U.S. by the end of the year.”

Tesla plans to have regulatory approval in Nevada, Arizona, and Florida sooner than in other states.

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