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Tesla Model Y taxi service might be required to buy gas cars before it can deploy EV fleet
Revel, a startup that unveiled its plans to launch a Tesla Model Y-based rideshare service in New York back in April, recently met a rather bizarre roadblock — one that could result in the company actually buying 50 gas cars before it could deploy its EV fleet.
The aspiring Model Y taxi service expected to win approval for its operations in the city because a 2018 cap on new rideshare and taxi vehicles included exemptions for electric vehicles, as well as cars that are accessible to handicapped individuals. The TLC later noted that it was pondering the elimination of the EV exemption, citing traffic concerns and congestion.
On Monday, June 21, the New York TLC issued a notice stating that it had voted to stop issuing new for-hire licenses for electric vehicles. There was a catch to the TLC’s notice, however, as the commission noted that “A public hearing was held virtually by the TLC and the rule was adopted by the Commission at the June 22, 2021 Commission meeting.”
That’s right. The New York TLC posted a notice stating that it had made a decision in a meeting that has not happened yet.
Allan Fromberg, a spokesperson for the New York TLC, simply noted that posting a final version of a planned rule change online is required by the City Administrative Procedure Act. He also dismissed concerns that the commission had already made a decision, citing issues about the past tense used in the notice as a “red herring.”
Interestingly enough, New York TLC Chair Aloysee Heredia Jarmoszuk, during an interview with the New York Post last week, stated that the agency would not bar Revel of any similar companies from entering the rideshare market in the city. She also stated that if Revel does face an unfavorable ruling, the aspiring Model Y taxi service could still launch its EV taxis if it bought 50 gas-powered vehicles, took them out of service, and replaced them with Teslas instead.
“Just because a car is electric doesn’t mean that adding more cars and more congestion is good for the environment. This is a simple math issue. This is not about targeting a group or saying you can’t enter the marketplace or we don’t like you,” she said.
Revel CEO Frank Reig, however, expressed his disapproval of such a suggestion. In a statement to the media outlet, Reig noted that requiring Revel to purchase gas cars to launch an electric taxi fleet would be the “very definition of limiting market competition.” He also stated that he is confident the company’s Model Y taxis would hit New York’s streets.
“We are going to be on the streets because we know the law is completely on our side. Never in Revel’s history have we operated illegally,” he said.
It’s not just the Revel CEO who has expressed his reservations about the TLC’s notice. Arthur Goldstein, a former city council legal staffer, remarked that the commission’s use of past tense for a meeting that’s yet to happen “makes no sense.” If they’re using a phrase like ‘was adopted’ and it’s being published today, it is just not accurate. Anyone reading it would think, ‘This is a done deal. Why should I even put forth an argument to change it?’” he said.
Bruce Schaller, a transportation expert and former staffer at the TLC and Department of Transportation, had similar misgivings, noting that the TLC’s notice was simply bad optics. “It looks bad. They should not finalize the rule until they’ve had the hearing and heard from the public. It makes you very suspicious. You just intuit that there’s a rationale behind this that’s been kept invisible and you don’t know what it is,” he said.
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Tesla’s flagship sedan, the Model S, has officially been named one of TIME Magazine’s Best Inventions of the 2000s. It joins its sibling, the Model 3, which made the list in 2017.
The Model S is among the most crucial developments in the automotive industry in the last century.
Just as the Ford Model T made its mark on passenger transportation, becoming the first combustion engine vehicle to be successfully developed and marketed at a time when horse and buggy were the preferred mode of transportation, the Model S revolutionized things a step further.
Although it was not the first EV to be developed, the Tesla Model S was the EV that put EVs on the map. In 2012, TIME recognized the Model S as a piece of technology that could truly transform the car industry.
The publication wrote:
“This electric four-door sedan has the lines of a Jaguar, the ability to zip for 265 miles (426 km) on one charge—that’s the equivalent of 89 m.p.g. (2.6 L/100 km)—and touchscreen controls for everything from GPS navigation to adjusting the suspension.”
Looking back, TIME was right on. The Tesla Model S was truly a marvel for its time, and it, along with the OG 2008 Roadster, can be seen as the first two EVs to push electrification to the mainstream.
As TIME described this year, the Model S “proved to be a game-changing experience for electric vehicles,” and it ended up truly catalyzing things for not only the industry, but Tesla as well.
The Model S acted as a fundraiser of sorts for future vehicles, just as the Model X did. They paved the way for the Model 3 and Model Y to be developed and offered by Tesla at a price point that was more acceptable and accessible to the masses.
The Current State of the Tesla Model S
The Model S contributes to a very small percentage of Tesla sales. The company groups the Model S with the Model X and Cybertruck in its quarterly releases.
Last year, that grouping sold 85,133 total units, a small percentage of the 1.789 million cars it delivered to customers in 2024.
Things looked to be changing for the Model S and the Model X this year, as Tesla teased some improvements to the two cars with a refresh. However, it was very underwhelming and only included very minor changes.
Lucid CEO shades Tesla Model S: “Nothing has changed in 12 years now”
It appeared as if Tesla was planning to sunset the two cars, and while it has not taken that stance yet, it seems more likely that the company will begin taking any potential options to heart.
CEO Elon Musk said a few years ago that the two cars were only produced due to “sentimental reasons.”
Tesla (NASDAQ: TSLA) has had a few weeks of overwhelmingly bullish events, and it is inciting several analysts to change their price targets as they expect the stock to potentially go Plaid Mode in the near future.
Over the past week, Tesla has not only posted record deliveries for a single quarter, but it has also rolled out its most robust Full Self-Driving (Supervised) update in a year. The new version is more capable than ever before.
Tesla Full Self-Driving v14.1 first impressions: Robotaxi-like features arrive
However, these are not the only things moving the company’s overall consensus on Wall Street toward a more bullish tone. There are, in fact, several things that Tesla has in the works that are inciting stronger expectations from analysts in New York.
TD Cowen
TD Cowen increased its price target for Tesla shares from $374 to $509 and gave the stock a ‘Buy’ rating, based on several factors.
Initially, Tesla’s positive deliveries report for Q3 set a bullish tone, which TD Cowen objectively evaluated and recognized as a strong sign. Additionally, the company’s firm stance on ensuring CEO Elon Musk is paid is a positive, as it keeps him with Tesla for more time.
Elon Musk: Trillionaire Tesla pay package is about influence, not wealth
Musk, who achieved each of the tranches on his last pay package, could obtain the elusive title as the world’s first-ever trillionaire, granted he helps Tesla grow considerably over the next decade.
Stifel
Stifel also increased its price target on Tesla from $440 to $483, citing the improvements Tesla made with its Full Self-Driving suite.
The rollout of FSD v14.1 has been a major step forward for the company. Although it’s in its early stages, Musk has said there will be improved versions coming within the next two weeks.
Stifel raises Tesla price target by 9.8% over FSD, Robotaxi advancements
Analysts at the firm also believe the company has a chance to push an Unsupervised version of FSD by the end of the year, but this seems like it’s out of the question currently.
It broke down the company’s FSD suite as worth $213 per share, while Robotaxi and Optimus had a $140 per share and $29 per share analysis, respectively.
Stifel sees Tesla as a major player not only in the self-driving industry but also in AI as a whole, which is something Musk has truly pushed for this year.
UBS
While many firms believe the company is on its way to doing great things and that stock prices will rise from their current level of roughly $430, other firms see it differently.
UBS said it still holds its ‘Sell’ rating on Tesla shares, but it did increase its price target from $215 to $247.
It said this week in a note to investors that it adjusted higher because of the positive deliveries and its potential value with AI and autonomy. However, it also remains cautious on the stock, especially considering the risks in Q4, as nobody truly knows how deliveries will stack up.
In the last month, Tesla shares are up 24 percent.
Tesla has landed permission to begin testing its Full Self-Driving suite in a new country: Sweden.
Tesla has been working to expand its Full Self-Driving suite across the world. Currently, it is available in seven countries: the United States, Canada, Mexico, Puerto Rico, Australia, New Zealand, and China, where it is referred to as “City Autopilot.”
Capabilities of the Full Self-Driving suite differ in each region based on the approvals given to Tesla by regulatory agencies.
In Europe, Tesla has been attempting for a long time to launch FSD in various countries, but regulatory red tape has been prolonging the company’s ability to launch the suite.
However, Sweden appears to be ready to allow Tesla to test FSD in some passenger and public locations, according to the country’s Transport Agency.
On X, a Swedish Tesla owner named Alexander Kristensen, says he received direct confirmation from the Transport Agency that Tesla has “received permission to test automated vehicles.”
Tesla got approval to test FSD in Sweden!
According to the Swedish Transport Administration, Tesla received approval to test FSD on all state highways and expressways in Sweden. The approval is valid for 3 cars owned by Tesla. pic.twitter.com/EVVPZZRpcs
— Alexander Kristensen (@LinkN01) October 9, 2025
The full email said:
“Tesla received permission to test automated vehicles last week. This includes three vehicles and all state highways and expressways in Sweden.”
— Alexander Kristensen (@LinkN01) October 9, 2025
Tesla has already been working with the Swedish Transport Agency on the first steps of Full Self-Driving’s approval. The company and the Transport Agency spent two weeks assessing data gathered during a Formal Site Assessment Test, or SAT.
Based on the communication from the Transport Agency to Kristensen, it appears the company has passed the SAT and will now be able to perform its own testing within the market.
This approval seems similar to the approval Tesla received in U.S. states for Robotaxi operation. Nevada and Arizona have both given Tesla approval for Robotaxi testing, but passengers are not allowed in the vehicles quite yet.
Instead, company employees perform the testing, which is likely what will go on in Sweden until the Transport Agency gives the company a green light to roll FSD software out to customers.
Tesla Model S makes TIME’s list of Best Inventions
Tesla analysts are expecting the stock to go Plaid Mode soon
Tesla lands permission to test Full Self-Driving in new country
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