Revel Shuts Down Model Y-Powered Ride-Hailing Service to Focus on Charging Business

Revel is shutting down its ride-hailing service in New York, which used modified Tesla Model Y vehicles. The service was similar to Tesla's Robotaxi app in the Bay Area. Revel will focus on its charging business and sell its 165 electric vehicles, as well as its for-hire vehicle license plates, valued at up to $25,000 each. Tesla may buy the license plates to launch its Robotaxi app in New York.

Revel, a ride-hailing service using modified Tesla Model Y vehicles, has announced its shutdown in New York. The company will shift its focus to its charging business and sell its fleet of 165 electric vehicles, along with its for-hire vehicle license plates valued at up to $25,000 each. Tesla is reportedly considering purchasing these license plates to expand its Robotaxi app in the city [1].

Tesla's Robotaxi app has been operating in Austin, Texas, since late June, with employees riding in the front passenger seat to manually intervene when necessary. The service has been accessible to invited users and is expected to open to the general public next month. However, Tesla's approach to autonomous vehicles (AVs) has drawn scrutiny, including federal probes and product liability lawsuits following collisions involving its Autopilot and Full Self Driving (FSD) systems [1].

In New York, Tesla is recruiting test drivers for its "automated driving systems" in Queens, but the company has not applied for the necessary permits to test AVs on city streets. The New York City Department of Transportation (DOT) requires companies testing AVs to have a trained safety driver behind the wheel at all times [1].

Meanwhile, Revel's shutdown provides an opportunity for Tesla to expand its Robotaxi service in New York. The company is already operating a limited, manned car service in San Francisco, promoting it as "autonomous ride-hailing." However, Tesla is not authorized to carry passengers on public roads in autonomous vehicles in California [1].

References:
[1] https://www.cnbc.com/2025/08/12/tesla-hiring-robotaxi-test-drivers-in-nyc-hasnt-applied-for-permits.html