They are doing both; one doesn't exclude the other. Unsupervised FSD is also coming to the model y and model 3. They actually had a few model y's cruising around unsupervised at the event even. And they also have the 20 people robovan thing.
If you look at regular taxis, the only part that is used by passengers is typically the back seat. Which fits two, maybe three people at best. So, it's not such a crazy form factor for a taxi because most taxis are also two passenger vehicles right now.
The point of this car is that it's smaller and cheaper (less parts, battery, etc.) and optimized for being an autonomous taxi. And the reason for that is productizing unsupervised FSD. The car is just a means to that end. If you are going to build a self driving taxi, a two seater is the logical choice. IMHO it's actually too big. They could make it a lot shorter.
If you look at regular taxis, the only part that is used by passengers is typically the back seat. Which fits two, maybe three people at best. So, it's not such a crazy form factor for a taxi because most taxis are also two passenger vehicles right now.
The point of this car is that it's smaller and cheaper (less parts, battery, etc.) and optimized for being an autonomous taxi. And the reason for that is productizing unsupervised FSD. The car is just a means to that end. If you are going to build a self driving taxi, a two seater is the logical choice. IMHO it's actually too big. They could make it a lot shorter.