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Digital render of NEOM’s The Line project in Saudi Arabia

The Line, NEOM

In Saudi Arabia’s northwestern desert, a sprawling construction site replete with cranes and pile drivers sits encircled by a recently-built road. A pair of tracks cuts through the site like deep gashes through the sand, comprising the spine of what planners say will be a high-speed rail system.

The skeletal infrastructure forms the foundations of The Line, a multi-billion dollar high-tech city that its architects say will eventually house 9 million people between two 106-mile long glass skyscrapers more than 1,600 feet high.

The project, whose estimated cost is in the hundreds of billions, is just one of the hyper-futuristic venues planned in Neom, the brainchild of Saudi Crown Prince Mohammed bin Salman and a region that the kingdom hopes will bring millions of new residents to Saudi Arabia and revolutionize living and technology in the country. It’s a core pillar of Vision 2030, which aims to diversify the Saudi economy away from oil revenues and create new jobs and industries for its burgeoning young population.

The cost of Neom has been estimated to be as high as $1.5 trillion. In the years since it was announced, Saudi Arabia’s Public Investment Fund, the mammoth sovereign wealth fund now overseeing $925 billion in assets, has poured billions into overseas investments, with ever-increasing waves of foreign investors flying to the kingdom to raise cash.

This year, however, has seen a sharp change in direction in terms of spending, with a stated emphasis on keeping investments at home along with reports of cutting costs on megaprojects like those in Neom. The changes come as the Saudi deficit grows and the outlook for oil demand, along with global oil prices, sees sustained lows.

Construction for The Line project in Saudi Arabia’s NEOM, October 2024

Giles Pendleton, The Line at NEOM

That begs the question: does Saudi Arabia have enough money to meet its lofty goals? Or will it have to be more flexible to make its spending trajectory sustainable?

One Gulf-based financier with years of experience in the kingdom told CNBC: “The PIF’s pivot towards domestic investments, widely acknowledged but now officially admitted, suggests that there is still a lot of spending needed. Saudi Arabia has poured tens of billions into projects that have yet to hint of any financial returns.”

The financier spoke anonymously as they were not authorized to speak to the press.

Andrew Leber, a researcher at Tulane University who focuses on the political economy of the Middle East, believes that the current pace of spending won’t last.

“The number of ‘we pay up front and hope for economic returns later’ giga projects that are currently underway is not sustainable,” Leber said.

“With that being said,” he added, “the Saudi monarchy has shown itself to be somewhat flexible whenever economic realities assert themselves. I do think that eventually, a number of projects will be quietly shelved in order to bring its fiscal outlays back into greater sustainability.”

Digital render of NEOM’s The Line project in Saudi Arabia

The Line, NEOM

Saudi Arabia in October cut its growth forecasts and raised its budget deficit estimates for the fiscal years 2024 to 2026 as it expects a period of higher spending and lower projected oil revenues. Real gross domestic product is now expected to grow 0.8% this year, a dramatic drop from a previous estimate of 4.4%, according to the ministry of finance.  

The kingdom’s economy also swung dramatically from a budget surplus of $27.68 billion in 2022 to a deficit of $21.6 billion in 2023 as it ramped up public spending and decreased oil production due to its OPEC+ supply cut agreement. Its government forecasts a deficit of $21.1 billion for 2024, projecting revenue at $312.5 billion and expenditures at $333.5 billion.

Saudi authorities expect that the budget will remain in deficit for the next several years as it pursues its Vision 2030 plans, but they add that they are fully prepared for this.

Saudi Arabia's spending trajectory is sustainable, kingdom's finance minister says

“Our non-oil revenues have grown significantly, now it covers about 37% of expenditure. That’s a significant diversification, and that gives you a lot of comfort that you can maneuver and be stable despite the fluctuation in oil price,” Saudi Finance Minister Mohammed Al-Jadaan told CNBC in October. “Our aim is to make sure that our plans are stable and predictable.”

“We are not going to blink, we have significant fiscal resource under our disposal, and we are very disciplined in our fiscal position,” the minister said.

Saudi Arabia has an A/A-1 credit rating with a positive outlook from S&P Global Ratings and an A+ rating with a stable outlook from Fitch. That combined with high foreign currency reserves — $456.97 billion as of September, a 4% percent increase year-on-year, according to the country’s central bank — puts the kingdom in a comfortable place to manage a deficit, economists told CNBC.

Riyadh is successfully issuing bonds, tapping debt markets for more than $35 billion so far this year. The kingdom has also rolled out a series of reforms to boost and de-risk foreign investment and diversify revenue streams, which S&P Global said in September “will continue to improve Saudi Arabia’s economic resilience and wealth.”

When asked if the kingdom’s spending trajectory is sustainable, Al-Jadaan replied: “Absolutely, yes,” adding that the government recently published its numbers for the next three years and that “we think it is very sustainable.”

Still, many analysts outside the kingdom, as well as individuals working within the kingdom and on NEOM projects, are skeptical of the megaprojects’ feasibility. Reports that some projects have been dramatically cut down — in the case of the Line, its size target slashed from 106 miles to 1.5 miles and population target down from 1.5 million by 2030 to less than 300,000 — attest to that concern on a higher level.

We are at an interesting inflection point in Neom's journey, deputy CEO says

Neom executives acknowledge that the current phase of work on The Line is for a building length of 1.5 miles — which would still make it the longest building in the world. However, the eventual goal of 106 miles has not changed, they say, stressing that cities are not built overnight and that construction is continuing apace.

For Tarik Solomon, chairman emeritus at the American Chamber of Commerce in Saudi Arabia, “it’s promising to see transparency and some project cutbacks.”

“The Kingdom’s rising external borrowing reflects challenges with Vision 2030 feasibility,” he told CNBC.

“Though debt remains manageable at 26.5% of GDP, continued small pressures add up, underscoring the need for fiscal discipline and achievable goals.”

Solomon pointed to the desire of many Saudi residents for improvements to the infrastructure they use in their daily lives — like Riyadh’s public transport, network connectivity, schools, and health care.

“The road to resilience for Saudi Arabia isn’t in figuring out ski slopes in the desert but in building with innovation, complexity, and the courage to pursue what’s truly impactful,” he said.

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BYD now has the world’s largest car transport ship and it just set sail overseas

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BYD now has the world's largest car transport ship and it just set sail overseas

The BYD “Shenzhen” set sail on its first voyage overseas this week. With 9,200 parking spots, or about enough to fill 20 football fields, BYD’s new car transport ship is now the world’s largest.

BYD’s largest car carrier sets sail for Brazil

BYD’s Shenzhen is on its maiden voyage to Brazil after setting sail on April 27. The vessel is carrying over 7,000 new energy vehicles (NEVs), including electric vehicles (EVs) and plug-in hybrid electric vehicles (PHEVs). It’s the largest single batch of NEVs exported from China so far.

The new vessel is BYD’s fourth car transport ship and the world’s largest, capable of carrying 9,000 vehicles. According to the company, that’s enough to fill about 20 football fields.

BYD launched its first car carrier, the Explorer No 1, in January 2024. It has already completed several trips to Germany, Spain, and Brazil.

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Its second, the BYD Changzhou, set sail in December 2024, followed by the Hefei earlier this year. All three vessels can carry up to 7,000 vehicles, making the Shenzhen the largest so far.

BYD's-largest-car-transport-ship
BYD Shenzhen, the world’s largest car transport ship (Source: BYD)

The Shenzhen is named after the automaker’s hometown and demonstrates “BYD’s firm determination to promote sustainable development in Brazil.”

BYD is preparing to launch two more vessels, the Changsha and Xi’an. The Changsha is expected to launch soon, while the Xi’an was introduced on April 2.

The new car carriers will help accelerate BYD’s aggressive overseas expansion. In the first three months of 2025, the company sold over 206,000 NEVs overseas, more than double the number it sold last year.

BYD sells a wide range of vehicles in Brazil, including the low-cost Dolphin Mini, starting at around $20,000 (99,800 BRL). In October, it launched its first hybrid pickup truck, the Shark, starting at 379,800 BTL ($66,900).

Brazil is only one overseas market that BYD is targeting. BYD’s sales are expected to double in Europe in 2025, with significant growth in other key regions like Southeast Asia, Japan, Mexico, and South Korea, to name a few.

Source: BYD

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‘Tesla homes’ with solar roof and Powerwalls go on sale

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'Tesla homes' with solar roof and Powerwalls go on sale

‘Tesla homes’ in a Houston neighborhood where all the homes have Tesla solar roofs and Powerwalls went for sale.

7 out of the 11 homes have reportedly already sold.

Tesla neighborhood is a term that is being used for new developments where all the homes integrate all or part of Tesla’s power ecosystem, including the Powerwall home battery pack.

The best example is a giant new development project in Austin, Texas, by Brookfield Asset Management and Dacra in which up to 12,000 new homes are to be built and offering Tesla solar roofs and Powerwalls.

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However, since the announcement, it looks like only some of the homes in the new neighborhood have Tesla energy systems.

In 2022, Tesla also announced a similar project in Las Vegas.

A year later, the company claimed to have deployed “over 600 solar neighborhoods” worldwide, with a total capacity exceeding 100 MW.

One such ‘Tesla neighborhood’ is a small block of 11 townhouse homes featuring Tesla solar roofs and Powerwalls in Houston, Texas.

The homes were recently completed and went on sale, starting at $544,900.

Here are some pictures from the listings:

Utopia Homes, the developer behind the project, described the properties (via Chron):

Step into modern elegance expertly crafted by Utopia Homes. This property showcases groundbreaking Tesla Solar Roof Shingles and Power Wall technology, ensuring 100% energy security and eliminating electric bills for a truly sustainable lifestyle.

The house has proved popular according to the real estate agents, with 7 out of 11 homes already sold.

As we recently reported, Tesla’s solar roofs have proven to be a more expensive and niche product than the company previously presented.

Tesla has largely stopped discussing it, but it is still being deployed through some third-party installers, such as in this case, on new homes.

However, its Powerwall product remains a very popular solution for homeowners seeking greater energy independence and protection against outages, which have been a frequent problem in Texas.

More homeowners are turning to generators, and alternatives like home battery packs are gaining popularity.

Now is a great time to begin your solar journey. If you want to make sure you’re finding a trusted, reliable solar installer near you that offers competitive pricing, check out EnergySage. EnergySage is a free service that makes it easy for you to go solar – whether you’re a homeowner or renter. They have hundreds of pre-vetted solar installers competing for your business, ensuring you get high-quality solutions and save 20 to 30% compared to going it alone. Plus, it’s free to use, and you won’t get sales calls until you select an installer and share your phone number with them.

Your personalized solar quotes are easy to compare online, and you’ll get access to unbiased Energy Advisors to help you every step of the way. Get started here.

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Vision Marine launches 2 new electric pontoon boats with 90 nautical miles of range

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Vision Marine launches 2 new electric pontoon boats with 90 nautical miles of range

Canadian electric propulsion specialist Vision Marine continues to graduate beyond advanced outboard motors into a provider of all-electric boats. This month, Vision introduced two new electric pontoon boats – the 12-passenger V24 and 15-passenger V30, each capable of a range up to 90 nautical miles.

Vision Marine Technologies ($VMAR) is a Canadian technology company with over 25 years of experience in the marine industry. The company made waves (literally) by introducing its E-Motion turnkey powertrain system, which it has since integrated into a catamaran speedboat, which set a speed record of 109 mph in 2022.

Since then, Vision has introduced six hp two-cruiser vessels – the Fantail 217 and Volt 180, each capable of transporting 10 passengers via its E-Motion technology. Most recently, Vision Marine has integrated the full power of its 180 hp electric powertrain technology into two additional vessels, both electric pontoon boats.

Earlier this month, the company officially began sales of the Vision V24 and V30, which you can view below.

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  • Vision electric pontoon
  • Vision electric pontoon

Vision Marine brings power and range to electric pontoons

According to Vision Marine Technologies, orders for its two new electric pontoon boats are now open, and they are touting the same E-Motion technology that put the company on the map a few years ago.

The first model is the V24, a 12-passenger electric pontoon that is 24′ 8″ in length and has 180 hp. The ultra-quiet E-Motion powertrain is powered by a standard 43 kWh marine battery pack, offering 40 nautical miles (46 miles) of all-electric range on a single charge. For added range, Vision sells a version of the electric pontoon with a second battery pack, totaling 86 kWh and delivering up to 90 nautical miles (104 miles) of range.

While the V24 offers more of a classic attempt at the pontoon boat, Vision’s additional new vessel, the all-electric V30, is a tad sportier and provides room for more passengers aboard (15). This 30′ vessel features the same E-Motion powertrain options, complete with the same two battery configurations to offer the same ranges as the V24.

However, the V30 has additional features such as 4 x 6.5″ interior speakers and cool-touch seats. Both models feature an integrated onboard charger that supports both 120- 240V (30 to 50 amps) for seamless charging, no matter the dock plug while moored.

The Vision V24 starts at $99,995 for the standard battery pack version, while the V30 starts at a higher price of $139,995. As previously mentioned, both electric pontoon boats are available to order today.

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