News
Uber will offer self-driving Volvos in Pittsburgh this month
Uber customers in Pittsburgh who request a ride from the ride sharing service may find themselves riding in a specially prepared Volvo XC90 that can drive itself. Passengers will ride in a self-driving vehicle chaperoned by a human driver behind the wheel ready to take control of the car if necessary and an engineer monitoring the operation of the autonomous system. This will mark the first time a self-driving car has been used in commercial service in the United States.
Uber’s self-driving car program has been under the stewardship of John Bares since January, 2015. Bares was head of Carnegie Mellon University’s National Robotics Engineering Center for 13 years before he left to start Carnegie Robotics, a Pittsburgh-based company that makes components for self-driving industrial robots used in mining, farming, and the military.
“I turned him [Kalanick] down three times. But the case was pretty compelling.” Bares says. Once he joined Uber, he quickly put together a team consisting of hundreds of engineers, robotics experts, and few old fashioned auto mechanics. The mission was nothing less that to replace Uber’s 1 million human drivers with robotic drivers as soon as possible. The message is, if you drive for Uber, you should keep your resumé up to date and your eyes open for other lines of work.
Pittsburgh is the center of the Uber self-driving experiment because that is where the talent is. Carnegie Mellon is a world leader in autonomous systems. Its graduates are working on the Google car and are in high demand at any company planning to offer self-driving cars, including Apple and Tesla. Earlier in the year, a Tesla Model S loaded with cameras and sensors, presumably a test mule for Autopilot 2.0, was spotted testing in Pittsburgh.
So far, Uber has just a few specially modified Volvo XC90s ready for commercial service, but it expects to have 100 of them by the end of the year. The hardware at the heart of its self-driving system includes cameras, radar, lidar, GPS receivers, and a liquid cooled computer mounted in the rear.
Uber self-driving Volvo XC90
Uber is moving fast. “We are going commercial,” says CEO Travis Kalanick. “This can’t just be about science.” Last month, it purchased Otto, a start-up company that is working to bring self-driving long haul trucks to market. In theory, its technology will allow truck drivers to crawl in back and nap while the trucks are on the highway. Uber will take over and re-brand that business and incorporate the Otto technology into its own self-driving systems.
Otto’s founders were all previously members of the Google car program, but grew impatient with the slow, plodding pace of development at Google. They wanted an opportunity to showcase their talents much sooner than they could if they remained at Google. “We were really excited about building something that could be launched early,” says Anthony Levandowski, co-founder of Otto.
Kalanick is clearly looking to be the first to begin offering a self-driving ride hailing service. He intends to beat Tesla, Apple, Google, Ford, and Genera Motors to the punch. “Nobody has set up software that can reliably drive a car safely without a human,” he says in an oblique reference to Tesla’s Autopilot system. “We are focusing on that.” Developing an autonomous vehicle, he adds, “is basically existential for us.”
At first, trips in the self-driving Volvos will be free. Uber’s standard local rate is $1.30 per mile but Kalanick says eventually prices will be so low that the cost per mile will be cheaper in a self-driving Uber than in a private car, even in rural areas. “That could be seen as a threat,” says Volvo CEO Hakan Samuelsson. “We see it as an opportunity.”
Source: Bloomberg Photo credit: Uber, AP
News
Tesla counters Norway’s VAT hike with dedicated consumer bonus
The move follows Tesla Norway’s stunning finish in 2025, where the company saw substantial sales during the final weeks of the year.
Tesla has rolled out a price incentive in Norway, effectively offsetting a notable VAT increase that hit electric vehicle buyers at the start of 2026.
The move follows Tesla Norway’s stunning finish in 2025, where the company saw substantial sales during the final weeks of the year.
A “Tesla bonus”
Once the VAT increase kicked in at the start of 2026, Tesla Norway’s sales cooled almost immediately, as noted in a CarUp report. Tesla’s response was swift, with the electric vehicle maker rolling out what it calls a “Tesla bonus.”
This bonus effectively cuts prices by up to 50,000 kronor across eight model variants. All versions of the Tesla Model Y qualify for the incentive, along with most Tesla Model 3 trims, save for the base entry-level model.
This means that for Tesla Norway’s best-selling vehicles, the bonus effectively restores pricing to pre-VAT levels. This blunts the impact of the new tax and makes Tesla’s vehicle offerings competitive again in Europe’s most EV-saturated market.
Stabilizing demand
In addition to the “Tesla bonus,” the electric car maker is also offering a promotional interest rate for up to three years, with terms varying by model. The incentive applies to orders placed between January 9 and March 31, 2026, with delivery required by the end of the first quarter.
The stakes are high in Norway, where electric vehicles dominate new-car registrations. From the vehicles that were sold in 2025, 96% of new cars sold were fully electric. And from this number, Tesla and its Model Y made their dominance felt. This was highlighted by Geir Inge Stokke, director of OFV, who noted that Tesla was able to achieve its stellar results despite its small vehicle lineup.
“Taking almost 20% market share during a year with record-high new car sales is remarkable in itself. When a brand also achieves such volumes with so few models, it says a lot about both demand and Tesla’s impact on the Norwegian market,” Stokke stated.
Elon Musk
SpaceX gains favor as Pentagon embraces Musk-style defense reform
The remarks highlighted Musk’s improving relationship with the White House, as well as SpaceX’s growing role in U.S. defense.
SpaceX emerged as a clear beneficiary of the Trump administration’s renewed push to accelerate military innovation, as Defense Secretary Pete Hegseth openly praised Elon Musk’s private space enterprise during a visit to the company’s Starbase launch site in Texas.
The remarks highlighted Musk’s improving relationship with the White House, as well as SpaceX’s growing role in U.S. defense.
Hegseth embraces Elon Musk’s pace
Speaking at SpaceX’s Starbase facility in Brownsville, Texas, Hegseth criticized what he described as a “risk-averse culture” among traditional defense contractors and called for faster innovation modeled after Musk’s approach. He confirmed that the Department of Defense plans to integrate Musk’s Grok AI platform into Pentagon systems, which is part of the administration’s efforts to make the U.S. military an “AI-first warfighting force.”
Hegseth stated that the Pentagon intends to deploy AI models across both classified and unclassified networks, signaling a willingness to push past earlier efforts to limit military use of artificial intelligence. His comments aligned closely with President Donald Trump’s recent call for a $500 billion increase in defense spending, Bloomberg News noted. Trump has also warned major contractors that slower production and shareholder-focused practices could put future contracts at risk.
While Hegseth criticized legacy defense firms, SpaceX was held up as an example of how aggressive timelines, vertical integration, and iterative development could reshape defense strategies. “We need to be blunt here; we can no longer afford to wait a decade for our legacy prime contractors to deliver a perfect system. Winning requires a new playbook. Elon wrote it with his algorithm: question every requirement, delete the dumb ones and accelerate like hell,” Hegseth said.
SpaceX’s expanding defense role comes into focus
SpaceX has become one of the U.S. government’s most important aerospace partners. The company holds roughly $4 billion in NASA contracts to develop Starship into a lunar lander, while also serving as a key launch provider for sensitive national security payloads using its Falcon 9 and Falcon Heavy rockets.
During the visit, Musk highlighted that his ambitions extend beyond defense contracts, reiterating long-term goals of interplanetary travel and eventual exploration beyond the solar system. Still, the optics of the event reinforced how closely SpaceX’s capabilities now align with U.S. strategic priorities.
The appearance also marked another step in Musk’s political rehabilitation after a public falling-out with the White House last year. Since leaving his role leading the Department of Government Efficiency, Musk has gradually reengaged with the administration, reconnecting with U.S. President Donald Trump during slain conservative activist Charlie Kirk’s tribute and attending events at the White House. Trump’s also recently suggested that Starlink could help restore internet access in Iran.
Tesla has launched a new Model Y configuration in the “Premium” trim, and it comes with three highly requested features that have launched in markets outside of the U.S. and in other trims.
Tesla announced on Monday night that it has officially launched the Model Y Premium in a seven-seat configuration, which also comes standard with a 16″ touchscreen and black headliner, both of which are featured in the Model Y Performance trim.
The seven-seat configuration is highly requested by consumers and helps fill out the more spacious SUV offering that the lineup has missed outside of the Model X, which prices out many consumers. This new upgrade only costs $2,500 extra for all three features, bringing the cash price to $48,990.
This also comes with the larger 16” touchscreen! pic.twitter.com/aiAxWUTKZa
— TESLARATI (@Teslarati) January 13, 2026
The move to add the seven-seat configuration with the black headliner and additional screen size is a welcome addition, as many Tesla fans have asked the company to come out with an SUV with more seating capacity. Although it is not a full-size SUV, the additional seating will certainly attract some buyers with bigger families.
It appears the third row is slightly more spacious than the past iteration of the seven-seat Model Y, which was available in the previous design pre-Juniper:
Credit: Tesla
However, it definitely still appears to be pretty cramped in terms of legroom. It will definitely be a seating arrangement for smaller passengers, mostly reserved for children.
The other two upgrades are the black headliner, which was launched in other markets and in the Model Y Performance. Many owners have wanted this change, and Tesla listened, but is only offering it with the seven-seat configuration. It also has a larger 16″ touchscreen, also present in the Model Y Performance exclusively:
Credit: Tesla
It is a nice touch to add these highly requested features to the all-electric crossover, which was the best-selling vehicle in the world for the third consecutive year.
Tesla counters Norway’s VAT hike with dedicated consumer bonus
SpaceX gains favor as Pentagon embraces Musk-style defense reform
