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Tesla unveils new model that could be 'Waymo killer' — though Elon Musk says it 'might not ever' be sold in US

"The market is large enough for everyone."

"The market is large enough for everyone."

Photo Credit: Tesla China

Tesla has unveiled a new Model Y L — a three-row, self-driving electric vehicle designed for ride-hailing — that could make electric robotaxi rides more affordable and accessible for families.

Teslarati shared the features of the new Model Y L, an upgraded three-row crossover designed for autonomous driving. The self-driving EV includes space for up to five passengers, heated and cooled seats, and other comfort features.

Tesla is offering the vehicle only in China for now, at about $47,000. Tesla CEO Elon Musk said on X that the vehicle will not enter production for the U.S. until next year and "might not ever" be available to purchase on its own, "given the advent of self-driving in America" Considering the price is well below the estimated cost of producing a single Waymo robotaxi unit and competitive compared with other EVs on the market, Teslarati took the news as a sign that it could be a "Waymo killer."

According to Reuters, Tesla released a video of the new model on Weibo, generating strong consumer interest. Teslarati reported that Tesla China has already received more than 35,000 orders for Model Y L, which is welcome news, as Tesla's sales dipped in the first half of 2025.

More affordable EVs could help bring down the cost of ride-hailing, which remains high as battery-powered vehicles are still about 25% pricier than industry averages, per the Energy Information Administration.

If widely adopted, EV-based robotaxis like the Model Y L could reduce traffic pollution and improve urban air quality — with electric cars producing up to 78% less harmful carbon pollution over their lifetime than gasoline vehicles, according to the International Council on Clean Transportation.

Public reaction to Tesla's new release has been mixed. One X user said, "This is a complete winner, what a great addition!"

Another argued that "the way to go for Tesla as [an] efficient Robotaxi is a 2-seater, not a 6-seater." Reacting to the "Waymo killer" label, one commenter remarked, "No one is killing anyone…The market is large enough for everyone." Likewise, Uber is also in the mix with upstart Tesla competitor Lucid, among other driverless rideshare enterprises. 

Drivers looking for ways to cut harmful air pollution can look at EVs as an attractive option — especially when paired with installing home solar panels that can further lower charging costs and your carbon footprint. EnergySage can help make the process easy by connecting you with vetted local installers and can even save you up to $10,000 on the installation. 

For those not ready to buy, expanded access to clean ride-hailing services could still provide a practical way to support the shift toward cleaner transportation.

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