News
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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News
Tesla Cybercab spotted testing on public roads for the first time
The car was spotted just minutes from Tesla’s Engineering Headquarters in Los Altos, California. There are a few interesting tidbits we can gather from the photo and the information shared with it.
The Tesla Cybercab has been spotted testing on public roads for the first time, marking a substantial step forward in the vehicle’s development.
The car was spotted just minutes from Tesla’s Engineering Headquarters in Los Altos, California. There are a few interesting tidbits we can gather from the photo and the information shared with it:
BREAKING: Tesla’s Cybercab spotted testing on public roads for the first time!
This was in Los Altos, California, about 10 minutes from Tesla’s Engineering HQ. As would be expected at this stage, a person was in the driver seat.
The future is autonomous 🤖 pic.twitter.com/cvd6UrnKZo
— Sawyer Merritt (@SawyerMerritt) October 29, 2025
The vehicle had a driver and side view mirrors equipped on it, which seems to be pretty expected, especially at this stage.
Tesla might have been using its Full Self-Driving software with the vehicle as it enters this new stage of testing on public roads. This seems most likely, especially as the car, which has long been developed to be void of a steering wheel and pedals, will totally rely on autonomous tech to transport one or two passengers to their destination.
Additionally, side view mirrors are required by law at delivery, and Tesla was likely looking to keep things as safe and elementary as possible, especially with this early stage of testing.
As this is the first time the vehicle has been spotted on public roads and the first time it was likely testing on them, Tesla was being cautious.
There have been a lot of developments with Cybercab over the past few weeks, as the car has been spotted testing on the Fremont Factory’s test track, units have been seen outside of Gigafactory Texas’s crash testing facility, and there has been some additional speculation about what the vehicle’s standard equipment will be.
There have also been quite a few job postings by Tesla for manufacturing and production roles related to Cybercab over the past few weeks.
Yesterday, Tesla’s Board Chair, Robyn Denholm, revealed that the company could end up building Cybercab with a steering wheel and pedals, contrary to what Tesla and CEO Elon Musk have wanted to do.
The vehicle has yet to reach that stage of regulatory testing, but Tesla wants to start volume production in Q2. If it wants to release the vehicle without any manual controls, that means that Full Self-Driving will need to be completed within the next eight months.
News
Tesla hints it could see ‘a few more vehicles’ released soon
Denholm said on CNBC yesterday that “we do have a few other vehicles coming out.”
Tesla Board Chair Robyn Denholm hinted the company could see “a few more vehicles” coming out and being released soon, although there is no indication of what could be on the way based on her comments.
However, Tesla has hinted toward several potential releases in the coming years, as other executives, including Chief Designer Franz von Holzhausen, have talked briefly about what could be on the way.
Denholm said on CNBC yesterday that “we do have a few other vehicles coming out.”
BREAKING: $TSLA BOARD CHAIR ROBYN SAYS — “WE HAVE NEW VEHICLES COMING OUT” 👀
It’s happening ! pic.twitter.com/f8UuZWGLuP
— TheSonOfWalkley (@TheSonOfWalkley) October 27, 2025
It was a vague and almost cryptic sentence, as, in all honesty, it was not completely clear whether she was talking about recent releases that are just making their way to market, like the Model 3 and Model Y “Standard,” or new vehicles altogether.
Nevertheless, it’s worth dissecting.
Tesla “Standard” Models
On October 7, Tesla launched the Standard Model 3 and Model Y, stripped-down versions of their now “Premium” siblings. The Standard trims lack premium features like leather seats, a rear touchscreen, and a glass roof, among other features.
These cars are just starting to be delivered for the first time, so it is possible that Denholm was referring to these cars.
Potential Model 2 Hint?
There has always been a looming vehicle model that many Tesla fans and owners have been intrigued by: the Model 2.
This car was hinted at being the $25,000 model that Tesla was rumored to be developing, and many thought that was the vehicle that would be released earlier this month, not the Standard Model 3 and Model Y.
Instead, the Model 2 could be something that would enable Tesla to reach an entirely new consumer base, including those who are not able to swing the payment for the company’s more premium offerings.
It seems Tesla will have to launch some sort of extremely affordable model in the future, and with the Cybercab being slotted at that rough price point, it would not be out of the question for it to be in the realm of possibility for future releases.
It’s worth noting, however, that it is probably unlikely this will happen. Tesla is so deadset focused on autonomy, it seems Cybercab would take extreme precedence over the unconfirmed “Model 2.”
Cybertruck-inspired SUV
Tesla fans have been begging the company to develop a full-size SUV that would compete with the Ford Expedition or Chevrolet Tahoe, but the company has not given any indication that this would be something it would build.
Nevertheless, there was a very subtle hint in a recent promotional clip that showed a Cyber SUV mock-up placed strategically next to a clay model of a Model 3:
The Model X is simply not what people want when it comes to an SUV, as it does not have the seating capacity and cargo space that many need with a full-sized SUV.
This issue, in particular, has been one that has been extremely relevant to the company’s future lineup as consumers have shown they would be interested in a Tesla vehicle that fit this description.
Additionally, von Holzhausen said in September that a Cyber SUV or a smaller electric pickup with a more traditional design is “definitely things we’ve considered…We’re working on so many innovative and fun things.”
Tesla gives big hint that it will build Cyber SUV, smaller Cybertruck
Investor's Corner
Tesla enters new stability phase, firm upgrades and adjusts outlook
Dmitriy Pozdnyakov of Freedom Capital upgraded his outlook on Tesla shares from “Sell” to “Hold” on Wednesday, and increased the price target from $338 to $406.
Tesla is entering a new phase of stability in terms of vehicle deliveries, one firm wrote in a new note during the final week of October, backing its position with an upgrade and price target increase on the stock.
Dmitriy Pozdnyakov of Freedom Capital upgraded his outlook on Tesla shares from “Sell” to “Hold” on Wednesday, and increased the price target from $338 to $406.
While most firms are interested in highlighting Tesla’s future growth, which will be catalyzed mostly by the advent of self-driving vehicles, autonomy, and the company’s all-in mentality on AI and robotics, Pozdnyakov is solely focusing on vehicle deliveries.
The analyst wrote in a note to investors that he believes Tesla’s updated vehicle lineup, which includes its new affordable “Standard” trims of the Model 3 and Model Y, is going to stabilize the company’s delivery volumes and return the company to annual growth.
Tesla launches two new affordable models with ‘Standard’ Model 3, Y offerings
Tesla launched the new affordable Model 3 and Model Y “Standard” trims on October 7, which introduced two stripped-down, less premium versions of the all-electric sedan and crossover.
They are both priced at under $40,000, with the Model 3 at $37,990 and the Model Y at $39,990, and while these prices may not necessarily be what consumers were expecting, they are well under what Kelley Blue Book said was the average new car transaction price for September, which swelled above $50,000.
Despite the rollout of these two new models, it is interesting to hear that a Wall Street firm would think that Tesla is going to return to more stable delivery figures and potentially enter a new growth phase.
Many Wall Street firms have been more focused on AI, Robotics, and Tesla’s self-driving project, which are the more prevalent things that will drive investor growth over the next few years.
Wedbush’s Dan Ives, for example, tends to focus on the company’s prowess in AI and self-driving. However, he did touch on vehicle deliveries in the coming years in a recent note.
Ives said in a note on October 2:
“While EV demand is expected to fall with the EV tax credit expiration, this was a great bounce-back quarter for TSLA to lay the groundwork for deliveries moving forward, but there is still work to do to gain further ground from a delivery perspective.”
Tesla has some things to figure out before it can truly consider guaranteed stability from a delivery standpoint. Initially, the next two quarters will be a crucial way to determine demand without the $7,500 EV tax credit. It will also begin to figure out if its new affordable models are attractive enough at their current price point to win over consumers.
Tesla Cybercab spotted testing on public roads for the first time
Tesla hints it could see ‘a few more vehicles’ released soon
Tesla enters new stability phase, firm upgrades and adjusts outlook
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