Traders work on the floor of the New York Stock Exchange during afternoon trading on September 26, 2023 in New York City.
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Firing up demand for gas Southeast Asian countries are poised to be prime markets for liquified natural gas by 2030, said industry watchers. Vietnam, in particular, is seen as a main driver of demand because of the government’s power plan for the decade that prioritizes imported LNG for energy generation. Conversely, analysts expect Europe’s demand for LNG to peak in 2027.
The Pound pounded The British pound fell 3.75% against the U.S. dollar in September, its worst month for a year. It’s currently trading at 1.20 to the dollar, but Goldman Sachs strategist Michael Cahill thinks it’ll drop below that figure because the Bank of England — which left rates unchanged at its last meeting — has expressed a dovish tilt recently.
Trapped in the ‘Google web’ “Everybody talks about the open web, but there is really the Google web,” Microsoft CEO Satya Nadella testified in federal court as part of the U.S. government’s antitrust trial against Google. Nadella was referring to the way publishers often cater their content and advertising to Google’s products, reflective of the sway Google has over web publishing.
[PRO] Irrational fears An irrational fear is making shares of this money manager look cheap, said a value investor. That’s a great bargain for a firm that’s a “phenomenal business,” and whose shares might rise up to 40%, according to one analyst.
The bottom line
Markets were relieved over a stopgap bill that allows the U.S. government to continue functioning for 45 days. But they grew more anxious over ever-increasing Treasury yields — both the 2-year and 10-year yield increased about 0.1 percentage points. Markets, as a result, teetered between the green and the red.
But it’s the Russell 2000 index to which investors should pay attention. The index fell 1.6% Monday, dragging down its year-to-date performance to negative 0.2%. In other words, the Russell 2000 turned negative for the first time in 2023.
Why does that matter to investors?
A quick background on the index. It comprises 2,000 small companies — the average market capitalization of a firm on the Russell 2000 is $2.98 billion, as of Aug. 31. (By contrast, a firm must have a market capitalization of at least $14.5 billion to be added to the S&P 500.)
Compared with the S&P’s year-to-date increase of 11.69%, the Russell 2000’s loss underscores how gains have been concentrated in mega-caps this year.
More significantly, investors think the Russell 2000 more accurately reflects the state of the U.S. economy. Smaller firms are more exposed to macroeconomic conditions. They don’t have the humongous cash reserves of Apple to help them sit out tumultuous times, for instance, or have pricing power to increase margins even as inflation bites.
The implication’s that the Russell 2000’s year-to-date loss portends further declines for stocks later in the year, as economic conditions catch up with bigger firms.
But Paul Hickey, co-founder of Bespoke Investment Group, doesn’t think that’s necessarily the case. Financials comprise much of the index, Hickey said, which makes the Russell 2000 more sensitive toward higher interest rates.
“So if you put all those factors together, I wouldn’t say that the Russell 2000 is a canary in the coal mine,” said Hickey.
A canary the Russell 2000 might not be, but a cautionary tale it definitely is.
The autonomous ag equipment experts behind the GUSS robotic sprayers have been developing their AI tech as part of a JV with John Deere for years — and now, that marriage is official. John Deere has acquired 100% of GUSS, and has big plans to pick up that tech and run with it like a … well, you know.
Since then, interest in automated ag equipment has only grown — fueled not just by rising demand for affordable food and produce, but by a national labor shortage made worse by the Trump Administration’s tough anti-immigration policies as well. It’s specifically those challenges around labor availability, input costs, and crop protection that GUSS and John Deere have been spending millions to address.
“Fully integrating GUSS into the John Deere portfolio is a continuation of our dedication to serving high-value crop customers with advanced, scalable technologies to help them do more with less,” explains Julien Le Vely, director, Production Systems, High Value & Small Acre Crops, at John Deere. “GUSS brings a proven solution to a fast-growing segment of agriculture, and its team has a deep understanding of customer needs in orchards and vineyards. We’re excited to have them fully part of the John Deere team.”
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About GUSS
GUSS autonomous farm sprayer; via John Deere.
The GUSS electric sprayer is powered by a Kreisel Battery Pack 63 (KBP63), which has a nominal energy capacity of 63 kWh, enabling the machine to operate for 10-12 continuous hours between overnight (L2) charges.
The GUSS electric sprayers feature the Smart Apply weed detection system that measures chlorophyll in the various plants it encounters, identifying weeds embedded among the crops, and only sprays where weeds are detected. The company claims its weed detecting tech significantly reduces the amount of chemicals being sprayed onto farmers’ crops, resulting in “up to 90% savings” in sprayed material.
John Deere’s deep pockets will support GUSS as it continues to expand its global reach, and help the group to accelerate Smart Apply’s innovation and integration with other John Deere precision agriculture technologies.
“Joining John Deere enables us to tap into their unmatched innovative capabilities in precision agriculture technologies to bring our solutions to more growers around the world,” says Gary Thompson, GUSS’ COO. “Our team is passionate about helping high-value crop growers increase their efficiency and productivity in their operations, and together with John Deere, we will have the ability to have an even greater impact.”
GUSS-brand autonomous sprayers will be sold and serviced exclusivelythrough John Deere dealers, and the GUSS business will retain its name, branding, employees, and independent manufacturing facility in Kingsburg, California.
More than 250 GUSS machines have been deployed globally, having sprayed more than 2.6 million acres over 500,000 autonomous hours of operation.
Electrek’s Take
Population growth, while slowing, is still very much a thing – and fewer and fewer people seem to be willing to do the work of growing the food that more and more people need to eat and live. This autonomous tech multiplies the efforts of the farmers that do show up for work every day, and the fact that it’s more sustainable from both a fuel perspective and a toxic chemical perspective makes GUSS a winner.
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Lawyers for Tesla filed a motion asking a court to throw out a recent $243 million verdict against the company related to a fatal crash in Florida in 2019. The case is the first instance of Tesla being ruled against by a court in an Autopilot liability case – previous cases had ended up settled out of court.
To catch up, the case in question is the $243 million Autopilot wrongful death case which concluded early this month. It was the first actual trial verdict against the company in an Autopilot wrongful death case – not counting previous out-of-court settlements.
The case centered around a 2019 crash of a Model S in Florida, where the driver dropped his phone and while he was picking it up, the Model S drove through a stop sign at a T-intersection, crashing into a parked Chevy Tahoe which then struck two pedestrians, killing one and seriously injuring the other.
Tesla was also caught withholding data in the case, which is not a good look.
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In the end, for the purposes of compensatory damages, the driver was found 67% responsible and Tesla was found 33% responsible. But Tesla was also slapped with $200 million in punitive damages. The plaintiffs reached a settlement with the driver separately.
Tesla said at the time that it planned to appeal the case, and its first move in that respect happened today, with lawyers for Tesla filing a 71-page motion laying out the problems they had with the trial.
In it, Tesla requests either that the previous verdict be thrown out, that the amount of damages be reduced or eliminated, or that the case go to a new trial, based on what Tesla contends were numerous errors of law during the trial.
The table of contents of Tesla’s filing lays out the company’s rough arguments for why it’s requesting the verdict to be thrown out, with Tesla seeming to throw several arguments at the wall to see what sticks:
I. Tesla Is Entitled to Judgment as a Matter of Law (or at Least a New Trial) on Liability.
A. The Verdict Is Unsupported by Reliable Expert Evidence.
B. Plaintiffs’ Design-Defect Theories Fail as a Matter of Law.
1. Tesla’s 2019 Model S Was Not Defective.
2. McGee Was the Sole Cause of Plaintiffs’ Injuries.
C. The Failure-to-Warn Claim Fails as a Matter of Law.
1. Tesla Had No Duty to Warn.
2. Tesla Provided Extensive Warnings.
3. The Asserted Failure to Warn Didn’t Cause the Crash.
D. Tesla Is Entitled to a New Trial If the Record Cannot Sustain the Verdict as to Any Theory on Which the Jury Was Instructed.
II. Highly Prejudicial Evidentiary Errors Warrant a New Trial on All Issues.
A. The Improper Admission of Data-Related Evidence Prejudiced Tesla.
B. The Improper Admission of Elon Musk’s Statements Prejudiced Tesla.
C. The Improper Admission of Dissimilar Accidents Prejudiced Tesla.
III. This Court Should Grant Tesla Judgment as a Matter of Law on Punitive Damages or at Least Significantly Reduce Punitive Damages.
A. Florida Law Prohibits the Imposition of Any Punitive Damages in This Case.
B. Florida Law Caps Punitive Damages at Three Times the Compensatory Damages Actually Awarded Against Tesla.
C. The Due Process Clause Limits Punitive Damages Here to No More Than the Net Award of Compensatory Damages.
1. Tesla’s Conduct Was Not Reprehensible.
2. A Substantial Disparity Exists Between the $200 Million Award of Punitive Damages and the $42.3 Million Award of Compensatory Damages.
3. Comparable Civil Penalties Do Not Justify the Punitive-Damages Award.
IV. This Court Should Reduce the Grossly Excessive Award of Compensatory Damages to No More Than $69 Million.
In short, Tesla blames the driver (who was found 67% liable) fully for the crash, says that the Model S and its Autopilot system were state-of-the-art and not defective because “no car in the world at the time” could have avoided the accident, that it provided proper warnings even though it didn’t need to, that evidence was improperly admitted to prejudice the jury against Tesla, and that the punitive damages are excessive.
After looking through the document, Tesla’s main contention seems to be with the admission of various evidence that it says prejudiced the jury against Tesla.
Indeed, the only exhibit attached to the filing is a transcript of a podcast episode where one of plaintiffs’ experts talks about evidence that Tesla withheld data, which Tesla says should have been inadmissible and prejudiced the jury against it.
Tesla says that the only reason these arguments were brought into court was to make the jury feel like there was a coverup, even though Tesla claims that there was no coverup. By repeatedly mentioning this, Tesla says the jury had a more negative view of the company than was fair.
It also says that Tesla CEO Elon Musk’s statements about Autopilot shouldn’t have been admissible, and that they prejudiced the jury against Tesla. Tesla says that the statements by Musk shown at the trial were irrelevant to plaintiffs’ case, exceeded the limits the court had set on which statements would be admissible, and that the admission of these statements “would disincentivize companies from making visionary projections about anticipated technological breakthroughs.”
Update: After this story was published, plaintiffs’ attorneys reached out with their own statement
“This motion is the latest example of Tesla and Musk’s complete disregard for the human cost of their defective technology. The jury heard all the facts and came to the right conclusion that this was a case of shared responsibility, but that does not discount the integral role Autopilot and the company’s misrepresentations of its capabilities played in the crash that killed Naibel and permanently injured Dillon. We are confident the court will uphold this verdict, which serves not as an indictment of the autonomous vehicle industry, but of Tesla’s reckless and unsafe development and deployment of its Autopilot system.”
–Brett Schreiber of Singleton Schreiber, lead trial counsel for plaintiffs Dillon Angulo & Naibel Benavides.
Electrek’s Take
Reading through the filing is persuasive at first, but remember that this is only one side of the story – and Tesla is well-known for never budging an inch in legal or reputational matters. (Update: for a quick reaction from “the other side,” see the statement by plaintiffs’ attorneys directly above).
Thinking a little deeper, the filing does rely on a similar “puffery” argument which Tesla has used before. The idea here is that Musk’s statements should be ignored because he, as the CEO of the company, has an incentive (and well-known tendency) to overstate the capabilities of its vehicles.
Lawyers did not use that exact word here, but they do claim that Musk’s statements are “forward-looking” and “visionary.”
But, for a guy who talks so much that he wasted $44 billion on a $12 billion social media site (twice) so that he could force his words in front of every user every day, denying that his words have an effect is a strange legal argument.
Indeed, Tesla has a history of not doing paid advertisements in traditional media, and has relied on Musk, and specifically Musk’s twitter account, to be the company’s impromptu communications platform. Musk even closed the company’s PR department, instead taking on the full burden of that himself.
So to argue that Musk’s statements shouldn’t be admissible, or that they didn’t set the tone for the organization, is more than a little silly.
While Tesla and Musk did state many times that Autopilot was not full self-driving (although, neither was the feature they marketed under the name, ahem, “Full Self-Driving”), the balance of Musk’s statements describing Tesla’s features definitely could have led a driver to think that the vehicles were more capable than any other vehicle on the road.
This is why it’s strange that Tesla also argues that “no other car” could have stopped in the situation of the crash. If your company is constantly claiming that you have the best, safest, most autonomy-enabled vehicle in the world (including in this filing, where it is referred to as “state of the art”), then who cares whether other cars could have done it or not? We’re talking about your car, not anything else.
Further, Tesla said that admitting these statements will put a chilling effect on every corporation’s ability to project anticipated breakthroughs in tech. To this I say, frankly: good. Enough with the nonsense, lets focus on reality, and lets stop excusing lies as corporate puffery, across all industries.
But this is an example of Tesla trying to have it both ways, to pretend that Musk’s statements are just puffery but also that they are important to breakthroughs and that silencing Musk would harm the company. Yes, it probably would harm Tesla’s outreach – because Musk’s statements are roughly the only source of Tesla’s advertising, which is why they ought to be heard to establish what the public thinks about the capabilities of Teslas.
And while Tesla says that cases like these would “chill” development of safety features if manufacturers are punished for bringing them to market, the punishment here isn’t for bringing the feature to market, it’s for overselling the feature in a way that set public expectations too high. Other features have not received this sort of scrutiny because other features don’t get pumped up daily with ridiculous overstatements by the company’s sole source of advertising.
On the other points, I’m not a lawyer. I’m not up to date on the specific limits to punitive damages in Florida. But on the surface, it seems fair to me that if a company was found to withhold data in an important case, after declining a settlement, that some level of significant punishment is fair.
After all, withholding data in a single non-fatal crash that wasn’t even their fault is what led Cruise to shut down operations everywhere. That may have been an overreaction and would certainly be an overreaction in this case with Tesla, given the driver’s responsibility for the crash. But in this case, the damage done to people (a death) was greater, and the damages Tesla is being told to pay ($243 million) will not lead to a shutdown of the entire company. Especially considering this is the same company that just managed to find tens of billions of dollars to give to a bad CEO.
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Is it the IONIQ 2 or 3? We are finally getting our first official look at the new Hyundai EV that will debut at next month’s Munich Motor Show.
Hyundai teases new EV concept with a radical design
Rumors of a new entry-level Hyundai have been spreading like wildfire over the past few months. After a few prototypes have been spotted out in public testing, some claim it’s the IONIQ 2, while others say it will be called the IONIQ 2.
Either way, the new model is almost here, and it sounds like it could shake things up. Hyundai dropped the first official images of the new EV on Tuesday, offering a glimpse of what’s to come.
Although it’s just a teaser, the images reveal a few new design elements that will be showcased. The rear spoiler appears to be roughly the same shape and size as the updated IONIQ 6, which is likely to feature a full-length LED light bar.
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The teaser comes after several test vehicles have been spotted recently, displaying a similar, upright, more SUV-like style reminiscent of the Kia EV2 concept.
Like its other IONIQ models and the Kia EV series, Hyundai’s new concept is likely to be based on its advanced E-GMP platform. It’s expected to fill the gap between the Inster EV and Kona Electric in Hyundai’s electric car lineup.
The interior is expected to be a step up from Hyundai’s current vehicles with a new infotainment system. Powered by its advanced new Pleos OS, the system will feel more like a smartphone.
Hyundai’s next-gen infotainment system powered by Pleos (Source: Hyundai)
Hyundai has yet to announce prices, range, and other final specs. However, since the Kona Electric starts at £34,995 ($47,000) in the UK, it will likely be priced closer to £25,000 ($33,700), like the Kia EV2.
Similar to the Kia EV3, Hyundai’s new electric car will likely be offered with 58.3 kWh and 81.4 kWh battery packs. The former provides a WLTP range of 260 miles, while the latter is rated with a range of 365 miles on a single charge.
Hyundai IONIQ 2 or IONIQ 3 EV spotted testing in Europe (Source: CarSpyMedia)
The new Hyundai EV will make its global debut at the Munich Motor Show in Germany, from September 9 through September 14.
Kia’s EV3 is already the most popular retail electric vehicle in the UK through the first half of 2025. Will Hyundai match it with the new model?
Hyundai will reveal two new sets of images over the next week, so be sure to check back for the latest updates.
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