Sustainability Infrastructure

Controversy erupts over ‘Tesla taxis’ in NYC

Story at a glance

  • Revel planned to use an exemption for EVs to launch a fleet of 50 Tesla taxis in New York City.
  • The city’s Taxi and Limousine Commission (TLC), however, voted 5-to-1 in favor of removing the exemption.
  • “But you can’t stop the future and you definitely can’t stop my team. We’ll be launching shortly and I can’t wait to show New Yorkers the future of rideshare!” Revel’s CEO said.

Revel says it will move forward with plans to launch a ride-hailing service using a fleet of Teslas in New York City, despite a recent rule change removing electric vehicles (EVs) as an exception from the cap on for-hire vehicles. 

The organization that regulates taxis and for-hire vehicles in New York City made EVs exempt from its taxi and ride-share cap back in 2018. 


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Revel, best known for its electric moped-sharing service, planned to use the exemption to launch a fleet of 50 Tesla Model Ys but was dealt a blow Tuesday when the city’s Taxi and Limousine Commission (TLC) voted 5-to-1 in favor of removing the exemption. 

That means anyone looking to acquire a new for-hire vehicle license for an EV is subject to the same review process as those with gas-powered cars. Those who own a license for a gas car can transfer the license to an electric vehicle.

“It is not sustainable to allow an unlimited number of new vehicles to the road in a city that is all too familiar with the choke of traffic congestion,” TLC Chair Aloysee Heredia Jarmoszuk said during the organization’s meeting

“The TLC will do everything they can to support owners who want to transition their licensed vehicles from gas powered to electric, and we welcome competition and innovation to make that happen,” she said. 

Revel CEO Frank Reig spoke out against the decision, saying the decision to apply the vehicle cap stifles market competition. 

“Building a business is hard. Especially when shortsighted bureaucracy and entrenched interests stand in your way,” Reig tweeted Wednesday


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“But you can’t stop the future and you definitely can’t stop my team. We’ll be launching shortly and I can’t wait to show New Yorkers the future of rideshare!” he added. 

It’s not clear how Revel plans to launch without the exemption. 

“Revel is exploring all options to make this a reality, and we’re confident that we’ll be able to operate legally in the near future,” a company spokesperson told The New York Post

Meanwhile, Tesla CEO Elon Musk weighed in, tweeting “??” to news of the TLC’s decision. 


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