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Tesla may have no new car coming after all as report reveals plan to launch a stripped down Model Y 

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  • The much touted $25,000 entry level Tesla, known colloquially as the Model 2, may not be built, dashing investor hopes. Instead, future sales growth may have to come from a car without steering wheel or pedals—the CyberCab.

The biggest mystery surrounding Tesla’s product roadmap may have been lifted on Thursday, with news trickling out of China that suggests there may be no Model 2 after all.

First reported by local tech website 36kr and later confirmed by Reuters, Tesla is developing a low-priced version of the Model Y, its best seller with roughly 1.1 million units sold. This suggests that hopes of a coming entry level compact car, possibly a hatchback rather than a sedan, will not come to fruition. 

The car codenamed “E41” will start production next year in Shanghai and will be at least 20% cheaper to produce than the current refreshed Model Y known as “Juniper”, according to Reuters. It could come even earlier if Juniper disappoints, sources told 36kr.

Tesla did not respond to a request by Fortune for comment. 

Since many institutional investors put a premium on tangible sales of EVs over hazier dreams of building humanoid robots, a key growth assumption for many was Tesla entering a new segment, like the compact car, where it could expand its total addressable market. 

These hopes persisted largely because Tesla has been coy about its actual product roadmap ever since last April. “Plans for new vehicles, including more affordable models, remain on track for start of production in the first half of 2025” is the most explicit it has gone in its comments.  

Chief executive Elon Musk kept these embers of hope burning late last year when he promised in October that Tesla EV sales would surge this year. 

“With our lower-cost vehicles, with the advent of autonomy, something like a 20 to 30 percent growth next year is my best guess,” he said

This was not repeated in January’s fourth quarter investor call, however. Officially Tesla is only aiming to increase sales. Analysts are now slashing their forecasts to reflect ongoing boycotts and a lack of compelling new product

Growth story in doubt

First teased as costing $25,000 back in September 2020, the low-cost car has long been for many investors a bigger strategic priority than the Cybertruck, with estimated annual sales in the millions. 

No carmaker had ever achieved such a feat. If Tesla managed to turn an expensive mid-size electric vehicle into the world’s most popular car, then it was trusted to build a smaller, low-cost model that could breach the 2 million unit ceiling in a single year. 

But the last supposed spy photographs of what some believed to be a Model 2 came in early 2023, prior to a Reuters report last April that revealed plans for a low-cost car built on the next-gen platform it would share with the CyberCab had been scrapped. 

The stock tanked on that news, but Musk was able to restore faith that Tesla’s growth story was intact by saying he had accelerated plans for a new more affordable model by six months to the first half of this year. 

‘Having a regular 25k model is pointless’

Yet he never got more specific. During the same October call when Musk predicted growth of up to 30% in 2025, he then made a comment whose significance may have been underappreciated at the time. 

“Having a regular 25k model is pointless, it would be silly, like it would be completely at odds with what we believe,” he said.

At the time that was interpreted to mean Musk simply would not launch a new product that was so cheap as to not come equipped with its Full Self Driving hardware, an AI inference computer known as AI4 (previously HW4). 

Now it seems increasingly clear the explosive growth Tesla forecasts will come from only one model: the CyberCab. The silver lining is Musk estimates its sales could amount to 2 million a year, or even 4 million. 

But that is little consolation for investors because of one key concern: the CyberCab has no steering wheel or pedals. It requires a full legal and regulatory framework in place in order to be sold and operated on public roads. 

Nor can Tesla simply convert the CyberCab into a car for sale by adding human controls, because the market for two-door cars seating a maximum of three people is minuscule. The vehicle as it is conceived and designed is likley only financially viable as a vehicle for robotaxi fleets.

This story was originally featured on Fortune.com



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Dr. Oz says probiotic supplements have wide-ranging health benefits. Here’s what science says

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Our bodies—and guts, specifically—depend on a balance of bacteria to “maintain healthy blood sugar and cholesterol levels,” but “you gotta feed the bacteria.” So said Dr. Mehmet Oz—heart surgeon turned daytime TV host, ardent RFK Jr. supporter, believer in disproven COVID treatment hydroxychloroquine, and now possible head of Medicaid and Medicare for the Trump administration—who began his Senate confirmation process on Friday

To aid in that gut-balancing process, Oz has pushed the benefits of both prebiotics and probiotics, including in his role as global advisor for the iHerb brand of supplements. 

Both have come under scrutiny recently, including through this week’s Washington Post opinion piece by Harvard medical school instructor and physician Trisha Pasricha, who called probiotics “a waste of money,” instead recommending a high-fiber diet

So which doctor is right? Here’s what science tells us. 

What are probiotics?

The human gastrointestinal tract is colonized by a range of microorganisms, including bacteria, archaea, viruses, fungi, and protozoa, explains the National Institutes of Health (NIH) Office of Dietary Supplements. And the activity and composition of those microorganisms (often known as the gut microbiome) can affect human health and disease.

Probiotics, according to the International Scientific Association for Probiotics and Prebiotics, are “live microorganisms that, when administered in adequate amounts,” may benefit that gut microbiome composition. 

While they are naturally present in fermented foods—including the homemade turmeric sauerkraut Dr. Oz mentions in his Instagram post (above) about probiotics—they can also be added to food products, and are available as dietary supplements. 

“However,” notes the NIH, “not all foods and dietary supplements labeled as probiotics on the market have proven health benefits.”

That’s where a range of varied opinions come into play.

Who says what about probiotic supplements?

As Pasricha points out, of the over 1,000 clinical trials of probiotic supplements, there have been too many different strains tested and results found to reliably say they can be universally helpful. 

A 2024 review of existing evidence, published in the Advances in Nutrition journal, concluded that, on one hand, “there is sufficient evidence of efficacy and safety for clinicians and consumers to consider using specific probiotics for some indications—such as the use of probiotics to support gut function during antibiotic use or to reduce the risk of respiratory tract infections—for certain people.”

However, those researchers concluded, “we did not find a sufficiently high level of evidence to support unconditional, population-wide recommendations for other preventive endpoints we reviewed for healthy people. Although evidence for some indications is suggestive of the preventive benefits of probiotics, additional research is needed.”

When looking at the body of scientific evidence regarding effect of probiotics on seven different health issues, the NIH reports the following:

Atopic dermatitis

Numerous studies have looked at the effect of probiotics on this most common form of eczema. Overall, the evidence suggests that the use of probiotics might reduce the risk of developing atopic dermatitis, but also might provide only limited relief. The effects also depend on the strain used, the timing of administration, and the patient’s age.

Pediatric acute diarrhea

While one large review found that single- and multi-strain probiotics significantly shortened the duration of symptoms, another found it was no better than a placebo. 

Antibiotic-associated diarrhea

Overall, the available evidence suggests that starting probiotic treatment with strains LGG (Lactobacillus) or Saccharomyces boulardii within 2 days of the first antibiotic dose helps reduce the risk of diarrhea in patients between 18 and 64, but not in elderly adults.

Inflammatory bowel disease

IBD is a chronic inflammatory disease that includes ulcerative colitis and Crohn’s disease, for which no cure exists. In the many reviews that have looked at the effects of probiotics, researchers reached similar conclusions—that certain probiotics might have modestly beneficial effects on ulcerative colitis but not on Crohn’s disease.

Irritable bowel syndrome

IBS is a common functional disorder of the gastrointestinal tract that’s been linked to both stress and gut microbiomes. Overall, the available evidence shows that probiotics might reduce some symptoms, but stresses that additional clinical trials are needed to confirm the specifics of strain, dose, and duration of treatment.

High cholesterol

Researchers have studied the use of probiotics to improve lipid profiles. And while, overall, research suggests that using multiple probiotic strains might reduce total and LDL (bad) cholesterol levels, more research is needed.

Obesity

Again: More research is needed. The results, the NIH concludes, “indicate that the effects of probiotics on body weight and obesity might depend on several factors, including the probiotic strain, dose, and duration as well as certain characteristics of the user, including age, sex, and baseline body weight.” 

Bottom line: The jury is still out. Whether you opt to try the supplements or not (as they are generally believed to be harmless, though long-term safety studies are still needed), make sure to eat plenty of fiber as well as fermented foods. That includes yogurt, kefir, fermented cottage cheese, kimchi and other fermented vegetables (as endorsed by Oz), and kombucha tea, which were shown by Stanford University researchers to increase microbial diversity and lower inflammation.

More on supplements:

This story was originally featured on Fortune.com



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Here’s when AI will launch a decade-long cycle of economic growth and productivity gains

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Gen Z Americans don’t have enough saved to cover a single month of spending

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FORTUNE is a trademark of Fortune Media IP Limited, registered in the U.S. and other countries. FORTUNE may receive compensation for some links to products and services on this website. Offers may be subject to change without notice.



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