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Tesla’s more experienced rivals are strangely making way for the Model Y
Something strange is happening in the crossover EV segment. Despite beating the Tesla Model Y to the market, European all-electric SUVs appear to be making way for the Silicon Valley-made disruptor. This shows that while Tesla may be entering the lucrative crossover segment later than its rivals, it will be doing so with a vehicle that does not seem to have a lot of willing challengers.
It should be noted that the Model Y is designed to compete in the auto industry’s most cutthroat segment. Dominated by iconic, hyper-reliable vehicles like the Honda CR-V and the Toyota RAV-4, the crossover market is as lucrative as it is competitive. In a way, crossovers are usually bang-for-the-buck cars: larger and more spacious than sedans, and at a price point that does not break the bank.
The Model Y is all these things. With 75% of the vehicle being the same as the Model 3 sedan, the Model Y is coming to the market with all of Tesla’s experience in production and tech that it learned over the past years. Its performance is second to none, with its quickest variant hitting 60 mph in just 3.5 seconds. It’s also quite larger than its Model 3 siblings, as it’s capable of seating seven passengers instead of five (provided that the two people on the rear seats are small, of course).
There is no doubt that the Model Y will likely capture a lot of the EV market. Tesla is such a strong force in the EV segment that its entry in the crossover market may be embraced just as well, if not better, than the Model 3. If one were to prepare for the arrival of a competitor then, it would be a great idea to get the jump on the Model Y, beating it to the market and saturating Tesla’s target demographic before the vehicle gets released.
In this sense, Tesla’s rivals somewhat succeeded. Jaguar unveiled the I-PACE way before the wraps were taken off the Model Y. The same was true for the Audi e-tron 55. Each vehicle was released to the market before sightings of Model Y release candidates became the norm. Yet, despite the hype generated for each vehicle and their actual merits, none of these all-electric SUVs put a dent on the US’ all-electric market.
And it’s not for lack of recognition either. The Jaguar I-PACE was so well received that it literally got over 60 awards, making it one of the most highly-decorated production cars in history. The Audi e-tron got its own fair share of fans too. Consumer Reports’ initial impressions of the e-tron were highly-positive, with the organization praising the vehicle for its posh interior and its looks. CR Deputy Content Editor Jon Linkov even remarked that that contrary to the snap of acceleration in Tesla’s electric cars like the Model S, the Audi e-tron has “more of an elegant pull-away.”
Yet, despite these, both the I-PACE and the e-tron have seemingly hit a ceiling. Estimates point to Jaguar selling 2,418 I-Pace in the US this year through November, and Audi selling 4,623 e-tron SUVs. The Tesla Model 3? Around 111,650 in the same period, as per Bloomberg. These sales figures were so stark that recently, Mercedes-Benz announced that the EQC’s release in the US will be delayed by a year. In a way, it appears that two Model Y challengers failed against the Model 3, and one seemed to be all-too-willing to give way for the upcoming vehicle.
This may end up being a costly mistake, especially on Mercedes-Benz’s part. By the time the EQC arrives in the US, the Model Y will likely be on the roads. And if the Model 3’s dominance of the electric car segment is any indication, Tesla might very well be poised to come out on top once more. With Elon Musk and Tesla seemingly being more cautious, understated vehicles like the Model Y, which have so much potential but seemingly receive so little attention, are the most dangerous for competitors.
Granted, one could argue that the I-PACE, the e-tron, and the EQC are more of the more expensive Model X’s competitors considering their prices. While this is true, all three vehicles are actually closer in size to the Model Y than the Model X. Even their interior space are smaller than the X, making them more of a Model Y rival in terms of features and spaciousness.
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Tesla Robotaxi rollout proves that Elon Musk still delivers, even if it’s late
Tesla is also still the company that makes the impossible feel late.
It took a long time, but Tesla has finally successfully rolled out its dedicated Robotaxi service in Austin this weekend. The initial rollout only involved a small fleet of cars operating in a small geofenced area in Texas, but it is still significant.
It does, if any, prove that Elon Musk is still capable of delivering on his promises, even if they are late. Tesla is also still the company that makes the impossible feel late.
Finally, a Rollout
Elon Musk has been predicting a Robotaxi rollout for years, so much so that even avid Tesla supporters have grown quite wary of his constant predictions. After a while, Elon Musk himself admitted that he has become the boy who cried FSD, though he still maintained that self-driving was really just around the corner.
This past weekend, Musk’s predictions finally came true. Actual paying customers used Tesla’s dedicated Robotaxi service for a small flat fee of $4.20 per ride. Elon Musk seemed quite happy with the Robotaxi’s initial launch, as evidenced by his congratulatory message to the Tesla AI team on X.
No More Tesla Vision Debates
One thing that is evident in Tesla’s initial Robotaxi rollout in Austin was the fact that the debate surrounding Tesla’s vision-only approach is completely gone now. With actual Robotaxis operating around Austin, there are no more questions about whether cars can navigate city streets on their own using only AI and cameras. They can, and safely too, at least based on Tesla’s initial fleet of Robotaxis.
The Beauty of Normalcy
The Robotaxi rides from Tesla owners who were fortunate enough to experience the first driverless rides from the EV maker’s fleet were quite uneventful. Comments on social media platforms such as X observed that the Robotaxis operated safely and cautiously, and their driving was actually smoother than some human drivers.
That may not sound very exciting at all, but that’s the beauty of it. Tesla’s Robotaxi service is designed to look and feel natural to people. And so far, it appears that Tesla is accomplishing this with its Robotaxi rollout.
Elon Musk
Tesla officially launches Robotaxi service with no driver
Tesla launches its driverless Robotaxi in Austin, marking the first time the company has offered its ride-hailing service anywhere in the world.
Tesla has officially launched its Robotaxi service platform with no driver in Austin, Texas. This is the first time Tesla has allowed driverless Robotaxis to pick up members of the public and take them around via the ride-sharing service the company has been developing for several years.
Teslarati had a first-hand look at the launch of the Robotaxi service in Austin, as we are part of the Early Access group, which is a limited group of people that will be able to hail a driverless Model Y in the geofenced area in Texas.
The Robotaxi platform is currently geofenced in a small portion of South Austin. It is roughly thirty minutes from end to end, and Tesla’s strategy is prioritizing safety through a number of safeguards that are implemented in this early program.
There is a fixed price of just $4.20 for any ride, regardless of duration, at this time. This will not always be the case, however. When a wider customer base is allowed to hail Robotaxis, ride fares will vary on things like travel distance, length of trip, and potentially time of day.
Here’s one of the first videos of Tesla Robotaxi ride
🎥: @BLKMDL3 https://t.co/LbVLoLtFGQ pic.twitter.com/PUQIqCRLQo
— TESLARATI (@Teslarati) June 22, 2025
The first rides kicked off at around 2 p.m. local time in Austin. They are confined to the back row of the Model Y, while a Tesla safety monitor sits in the passenger seat. Passengers will have their personal media and streaming settings available to them as the car will sync with their driver profiles.
Rides are requested through a Robotaxi addition on the regular Tesla iOS app:
🚨 Here’s our FIRST LOOK at the Tesla Robotaxi app! pic.twitter.com/kuEqP4n1SS
— TESLARATI (@Teslarati) June 22, 2025
The safety monitor is only there to ensure things go smoothly with each ride. They do not have pedals or a steering wheel on their side. The car is doing everything during these Robotaxi rides.
The big takeaway from Robotaxi’s launch is that Tesla will begin generating additional revenue through this new stream. As concerns over demand and annual growth rate continue to take focus from doubters, Tesla’s continuous rollout of the Robotaxi fleet will expand potential revenue opportunities, potentially creating billions upon trillions of dollars in value.
This is something Tesla permabulls like Cathie Wood of ARK Invest and Dan Ives of Wedbush have talked about for years: the launch of a driverless Robotaxi fleet that generates new income streams for Tesla.
Elon Musk
First Look at Tesla’s Robotaxi App: features, design, and more
Tesla is using a Robotaxi section of its normal smartphone application to enable access to driverless vehicles roaming around Austin.
Tesla has officially launched the Robotaxi platform to a limited number of people, giving them the ability to ask for a ride from a driverless Model Y in Austin, Texas. But how do you hail a ride?
Through the Tesla Robotaxi app, which officially launched on June 22 as the company initiated the first rides for non-employees, people can request rides from driverless cars that are traveling around Austin. Teslarati gained access to the app as we are members of the Early Access Rider program.
There are only a very limited number of vehicles operating within the fleet currently, as Tesla has said the number is between 10 and 20 vehicles.
Tesla is using a Robotaxi section of its iOS smartphone app for the launch, confirming what the company said prior to the program’s maiden voyage: there would not be a separate app for the Robotaxi.
First Look at the Robotaxi App
The Tesla Robotaxi app, similar to the official Tesla App, features a simple interface that should be familiar to anyone who has used a ride-sharing app in the past. Downloading the app brings users to a sign-in page, which features a Tesla Model Y Robotaxi as a header image. Users can then log in or create an account to access the service.
A Clean, Simple UI
Upon logging in, users are presented with a clean user interface that allows them to select a destination and pickup point. Upon booking, users are provided with a real-time update on when their Robotaxi will arrive. Users could also select some settings for their upcoming ride, such as their preferred temperature in the cabin.
Smart Suggestions
If there is one evident thing about Tesla’s Robotaxi App, it is the fact that it is smart and designed to make driverless ride sharing services feel as normal as possible. While waiting for their ride, customers are presented with a number of tips that should help them understand their robotaxi better.
These include tips on how to use the Model Y’s door handles, as well as information about the vehicle’s light signals. The app also includes smart suggestions on destinations that riders can visit using their Robotaxi. These include cafes, restaurants, parks, shopping centers, and other pertinent locations.
Cybercab Theme
Another thing that is evident with the Robotaxi App is its Cybercab-inspired color theme. This is evident from the login page, which already features the golden hues of the dedicated two-seater autonomous car. The golden Cybercab color theme is used to great effect inside the app itself as well.
No Tips, at Least for Now
As observed by Tesla owner-enthusiast @BLKMDL3, Tesla is not accepting anything more than the service’s flat $4.20 rate per ride for now. If customers wish to leave a tip for the service, they would be presented with a page featuring Tesla’s hedgehog mascot saying “Just Kidding.”
Tips will likely be an option in the future, but for this stage of the Robotaxi rollout, it appears that the service really will follow a flat rate system.
Tesla Robotaxi rollout proves that Elon Musk still delivers, even if it’s late
Tesla officially launches Robotaxi service with no driver
First Look at Tesla’s Robotaxi App: features, design, and more
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