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Tesla Robotaxi vs. New York Taxi: Why the Yellow Cab has a lot to lose
Tesla Robotaxi could spell the beginning of the end of the New York City yellow cab.
Tesla appears to be on its way into the Big Apple, and a traditional Yellow Cab in New York City might be a thing of the past in the near future.
As Tesla continues to put an immense focus on the rollout of its Robotaxi platform, it is evident that driverless ride-hailing modes of transportation could truly be the way that many choose to get around. This is especially prevalent in cities like New York, where many people do not own cars. Instead, they choose to walk to hail a cab.
Tesla Robotaxi is headed to New York City, but one thing is in its way
But the limited number of medallions available for taxi drivers in New York City, as well as several other points of emphasis, seem to show the future is here and yellow cabs might soon be a thing of the past.
Instead of working tirelessly to pay off the debt from medallions, entrepreneurs could soon just buy a Tesla and have it work autonomously in New York City. Tesla executives have mentioned figures as high as $50,000 per year in terms of passive income from Robotaxi operation.
That is just the tip of the iceberg, and Robotaxi presents not only one but at least five distinct advantages over the traditional cab platform. With Tesla starting to seek employees to operate Robotaxi rides in New York, according to recent job postings, New York City cabs should prepare for the disruption Tesla could potentially cause.
Lower Operational Costs and Cheaper Fares
Uber and Lyft have already undercut the costs of New York City taxis, but Robotaxi is starting to undercut even those ride-sharing programs in Austin, Texas.
In terms of how much cheaper Robotaxi will be than cabs, it is an exponential measurement over time. Robotaxi will not require salaries, benefits, or tips, and the cost of Robotaxi could end up being just a fraction of what the same ride would cost in a cab.
This feeds right back into medallion expenses and union wages: even buying a Tesla in the next few years that has the capability to operate as a Robotaxi will be a fraction of what medallions cost, which is sometimes $200,000.
Availability and Scalability
Cabs are available at all hours of the day, but at certain times, they are less available.
Robotaxis can technically operate without breaks, other than charging. Tesla has an immense focus on scaling its Robotaxi platform anyway, and once it is available for the public to use in their personal cars, Model Ys and Cybercabs could be roaming the streets of the five boroughs with more reliability and lower wait times than traditional cabs could ever offer.
This is an issue that is even more relevant in smaller cities or less congested portions of New York.
Safer and More Efficient Rides
Tesla’s Full Self-Driving technology has reported recent safety figures that are ten times less likely to be involved in an accident than a human. Tesla releases a Safety Report for each quarter that proves its safety against human drivers.
As Full Self-Driving continues to advance, it will get better. Riders who want a stable and safe ride could seek Robotaxi instead of going with a human driver. This is something that we’ll likely see more of in the future as sentiment on autonomous driving grows.
Trust in autonomous vehicles has increased substantially over the past ten years. In 2015, surveys showed that trust in autonomous vehicles was low, with only 23 percent of Americans showing that they’d ride in a driverless car.
In 2021, another study performed that asked the same question showed 57 percent of adults would try an autonomous car for their travel.
Seamless App Integration and User Experience
Taxis are not always the most entertaining to ride in, and sometimes they are even more difficult to get a ride in. Robotaxi has already shown to be an incredibly user-friendly experience, with riders being able to choose what temperature the cabin is and what music they want to listen to in the cabin.
The addition of a rear screen also allows riders to choose from a selection of games or YouTube videos in the car.
One thing going for @robotaxi: the rear screen is seriously really good. Very responsive screen and well designed UI. Your music app is synced from your Tesla account and you can easily control music, watch videos, etc.
Blows away Waymo’s entertainment options, weird Google… pic.twitter.com/fep2yIGzWq
— Ethan McKanna (@ethanmckanna) July 19, 2025
Hailing a vehicle was basically resolved with the use of Uber and Lyft. Robotaxi is just as good, if not better, from an app standpoint, especially as the in-car climate is able to be adjusted from the Robotaxi app.
Music from one Robotaxi will continue to play in your next one, too. It’s a small luxury, but it’s a feature that is an improvement over a traditional taxi.
The Push for Sustainability by New York City
New York is pushing for a city-owned fleet of all-electric vehicles by 2027.
Its green initiatives, including the Green Rides Initiative, have pushed the city’s rideshare trips to be conducted by either zero-emission or wheelchair accessible vehicles by 2030.
Tesla Model 3 taxis drive NY’s resolution for more all-electric yellow cabs
The focus by consumers to use green or zero-emission vehicles could also steer right into the direction of Tesla Robotaxi, as none of the vehicles in the Robotaxi fleet will be anything but all-electric Teslas.
Carbon neutrality is a goal of the City and its residents. Moving forward, we could see these programs start to put immense pressure on the yellow cab, which could eventually be a thing of the past.
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Tesla preps to build its most massive Supercharger yet: 400+ V4 stalls
The project will be an expansion of the current Eddie World Supercharger in Yermo, California, and will take place in several stages.
Tesla is preparing to build its most massive Supercharger yet, as it recently submitted plans for an over 400-stall Supercharging station in California, which would dwarf its massive 168-stall location in Lost Hills, California.
The project will be an expansion of the current Eddie World Supercharger in Yermo, California, and will take place in several stages.
The expansion, adjacent to the existing Eddie World Supercharger, which is currently comprised of 22 older V2 and V3 stalls limited to 150 kW, unfolds across six phases.
Construction on Phase 1 begins later this year with 72 V4 stalls. Subsequent stages will progressively add hundreds more, culminating in over 400 next-generation chargers. Site plans label expansive parking arrays across Phases 1–5 along Calico Boulevard, with Phase 6 design still to be determined.
Tesla is planning an absolutely massive Supercharger expansion in Yermo, California!!
Over the course of 6 phases, Tesla is set to add over 400 V4 stalls in a commercial development known as Eddie World 2.
The first phase, which should begin construction sometime this year,… pic.twitter.com/ks5Y5dE8lR
— MarcoRP (@MarcoRPi1) March 6, 2026
The project was first flagged by MarcoRP, a notable Tesla Supercharger watcher.
Strategically located midway on I-15 between Los Angeles and Las Vegas, the station targets heavy EV traffic on this high-demand corridor.
The surrounding 20-mile stretch already hosts over 200 high-power stalls (including 40 at 250 kW, 120 at 325 kW, and more), plus 96 in nearby Baker—yet bottlenecks persist during peak travel.
In scale, it eclipses all existing Tesla Superchargers. The current record holder, the solar- and Megapack-powered “Project Oasis” in Lost Hills, California, offers 164 stalls. Barstow’s former leader had 120. Eddie World 2 will be more than double that size, cementing Tesla’s dominance in ultra-high-capacity charging.
Tesla finishes its biggest Supercharger ever with 168 stalls
Development blends charging with convenience. Architectural drawings show integrated retail: a 10,100 square foot Cracker Barrel, a 4,300 square foot McDonald’s, a 3,800 square foot convenience store, additional restaurants, drive-thrus, outdoor dining, and lease space.
EV-centric features include pull-through bays for Cybertrucks and trailers, ensuring accessibility for larger vehicles and future Semi trucks.
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Tesla makes latest move to remove Model S and Model X from its lineup
Tesla’s latest decisive step toward phasing out its flagship sedan and SUV was quietly removing the Model S and Model X from its U.S. referral program earlier this week.
Tesla has made its latest move that indicates the Model S and Model X are being removed from the company’s lineup, an action that was confirmed by the company earlier this quarter, that the two flagship vehicles would no longer be produced.
Tesla has ultimately started phasing out the Model S and Model X in several ways, as it recently indicated it had sold out of a paint color for the two vehicles.
Now, the company is making even more moves that show its plans for the two vehicles are being eliminated slowly but surely.
Tesla’s latest decisive step toward phasing out its flagship sedan and SUV was quietly removing the Model S and Model X from its U.S. referral program earlier this week.
The change eliminates the $1,000 referral discount previously available to new buyers of these vehicles. Existing Tesla owners purchasing a new Model S or Model X will now only receive a halved loyalty discount of $500, down from $1,000.
The updates extend beyond the two flagship vehicles. New Cybertruck buyers using a referral code on Premium AWD or Cyberbeast configurations will no longer get $1,000 off. Instead, both referrer and buyer receive three months of Full Self-Driving (Supervised).
The loyalty discount for Cybertruck purchases, excluding the new Dual Motor AWD trim level, has also been cut to $500.
NEWS: Tesla has removed the Model S and Model X from the referral program.
New owners also no longer get a $1,000 referral discount on a new Cybertruck Premium AWD or Cyberbeast. Instead, you now get 3 months of FSD (Supervised).
Additionally, Tesla has reduced the loyalty… pic.twitter.com/IgIY8Hi2WJ
— Sawyer Merritt (@SawyerMerritt) March 6, 2026
These adjustments apply only in the United States, and reflect Tesla’s broader strategy to optimize margins while boosting adoption of its autonomous driving software.
The timing is no coincidence. Tesla confirmed earlier this year that Model S and Model X production will end in the second quarter of 2026, roughly June, as the company reallocates factory capacity toward its Optimus humanoid robot and next-generation vehicles.
With annual sales of the low-volume flagships already declining (just 53,900 units in 2025), incentives are no longer needed to drive demand. Production is winding down, and Tesla expects strong remaining interest without subsidies.
Industry observers see this as the clearest sign yet of an “end-of-life” phase for the vehicles that once defined Tesla’s luxury segment. Community reactions on X range from nostalgia, “Rest in power S and X”, to frustration among long-time owners who feel perks are eroding just as the models approach discontinuation.
Some buyers are rushing orders to lock in final discounts before they vanish entirely.
Doug DeMuro names Tesla Model S the Most Important Car of the last 30 years
For Tesla, the move prioritizes efficiency: fewer discounts on outgoing models, a stronger push for FSD subscriptions, and a focus on high-margin Cybertruck trims amid surging orders.
Loyalists still have a narrow window to purchase a refreshed Plaid or Long Range model with remaining incentives, but the message is clear: Tesla’s lineup is evolving, and the era of the original flagships is drawing to a close.
News
Tesla Australia confirms six-seat Model Y L launch in 2026
Compared with the standard five-seat Model Y, the Model Y L features a longer body and extended wheelbase to accommodate an additional row of seating.
Tesla has confirmed that the larger six-seat Model Y L will launch in Australia and New Zealand in 2026.
The confirmation was shared by techAU through a media release from Tesla Australia and New Zealand.
The Model Y L expands the Model Y lineup by offering additional seating capacity for customers seeking a larger electric SUV. Compared with the standard five-seat Model Y, the Model Y L features a longer body and extended wheelbase to accommodate an additional row of seating.
The Model Y L is already being produced at Tesla’s Gigafactory Shanghai for the Chinese market, though the vehicle will be manufactured in right-hand-drive configuration for markets such as Australia and New Zealand.
Tesla Australia and New Zealand confirmed the vehicle will feature seating for six passengers.
“As shown in pictures from its launch in China, Model Y L will have a new seating configuration providing room for 6 occupants,” Tesla Australia and New Zealand said in comments shared with techAU.
Instead of a traditional seven-seat arrangement, the Model Y L uses a 2-2-2 layout. The middle row features two individual seats, allowing easier access to the third row while providing additional space for passengers.
Tesla Australia and New Zealand also confirmed that the Model Y L will be covered by the company’s updated warranty structure beginning in 2026.
“As with all new Tesla Vehicles from the start of 2026, the Model Y L will come with a 5-year unlimited km vehicle warranty and 8 years for the battery,” the company said.
The updated policy increases Tesla’s vehicle warranty from the previous four-year or 80,000-kilometer coverage.
Battery and drive unit warranties remain unchanged depending on the variant. Rear-wheel-drive models carry an eight-year or 160,000-kilometer warranty, while Long Range and Performance variants are covered for eight years or 192,000 kilometers.
Tesla has not yet announced official pricing or range figures for the Model Y L in Australia.
Tesla preps to build its most massive Supercharger yet: 400+ V4 stalls
Tesla makes latest move to remove Model S and Model X from its lineup
