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Cybercab (Sjoerd van der Wal/Getty Images)

It turns out Tesla’s Cybercab might need to have a steering wheel and pedals after all

Tesla’s Cybercab was supposed to be a steering-wheel-less alternative to its affordable mass market car.

Rani Molla

When Tesla scrapped its plans for a low-cost consumer car, the company said that instead it would produce the low-cost Cybercab, an autonomous-only vehicle without a steering wheel and pedals meant for ride-hailing or personal use.

“I think having a regular $25,000 model is pointless,” CEO Elon Musk said on Tesla’s earnings call last October. “It would be silly, like it will be completely at odds with what we believe.” The vehicle was supposed to be available for ride-hailing this year and in “volume production” in 2026.

It looks like Tesla may be backtracking on those plans.

“If we have to have a steering wheel, it can have a steering wheel and pedals,” Tesla Chair Robyn Denholm told Bloomberg Tuesday.

Doing so would solve a number of problems for Tesla.

First off, it’s unclear whether Tesla’s technology is where it needs to be for cars to safely drive themselves without someone intervening. While Musk recently said the company now has “clarity” on achieving unsupervised Full Self-Driving, that’s not the same thing as rolling out unsupervised FSD to the public, which the company has long promised. Even the company’s robotaxis, which comprise about 30 Model Ys in a pilot program in Austin, still have a safety monitor in the passenger seat.

Then there’s also the thorny issue of getting approval for the driverless tech. Despite Musk’s lobbying efforts, regulators haven’t budged on certain safety standards, like requiring mass market cars to have steering wheels and pedals.

“The original Model Y was not going to have a steering wheel, or pedals,” Denholm told Bloomberg, saying the company has been here before. “If we can’t sell something because it needs something, then we’ll work with regulators to work out what we need to do.”

The release of the Cybercab could help solve issues with the company’s aging, relatively expensive lineup. Earlier this month, Tesla unveiled its “new” Model Ys and 3s, but they were mostly just lower-trim versions of existing Model Ys and 3s. Their lower prices had also been significantly undercut by the expiration of the government’s $7,500 EV tax credit. The Cybercab, which is supposed to cost around $25,000, would be both cheaper and newer than the company’s existing lineup.

Tesla hasn’t released a truly new model since the Cybertruck came out in 2023, and that has largely been a flop sales-wise. Tesla also generally offers far fewer options than competitors like BYD.

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Report: OpenAI in early talks for new fundraising round with $750 billion valuation

Just yesterday, we were reading about how Amazon was in talks to invest as much as $10 billion in OpenAI, with an eye-popping valuation of more than $500 billion. But those numbers might already be old.

A new report by The Information says that OpenAI is in early talks to raise as much as $100 billion, with a $750 billion valuation.

The company is reportedly estimating its fast-growing revenue will hit $100 billion by 2028, but it also expects to burn $115 billion in cash through 2029.

The company is reportedly estimating its fast-growing revenue will hit $100 billion by 2028, but it also expects to burn $115 billion in cash through 2029.

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Trump Media surges after announcing it is merging with fusion energy company TAE Technologies

Perhaps a strong late candidate for weirdest merger of the year, Trump Media — owner of Truth Social — is combining with fusion energy company TAE Technologies in a $6 billion all-stock deal.

As part of the deal, Trump Media will provide up to $200 million of cash to TAE at signing, with an additional $100 million available once the initial filing of the Form-S4 is completed (form for registering new securities).

The deal will create “one of the world’s first publicly traded fusion companies,” per the press release revealing the combination, which also states:

In 2026, the combined company plans to site and begin construction on the world’s first utility-scale fusion power plant (50 MWe), subject to required approvals. Additional fusion power plants are planned and expected to be 350 – 500 MWe.

The announcement sent Trump Media shares up as much as 30% in premarket trading on Thursday, though it’s since shed some of that bump, holding above a 20% gain as of 7:30 a.m. ET.

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