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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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China installs the world’s most powerful wind turbine

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China installs the world's most powerful wind turbine

China’s Dongfang Electric has installed a 26-megawatt offshore wind turbine, snatching the title of world’s most powerful from Siemens Gamesa’s 21.5 turbine in Denmark.

Photo: Dongfang Electric Corporation

The Chinese state-owned manufacturer announced today that it has installed the world’s most powerful wind turbine prototype at a testing and certification base. This turbine, the world’s largest for capacity and size, boasts a blade wheel diameter of more than 310 meters (1,107 feet) and a hub height of 185 meters (607 feet). Dongfang shipped the turbine’s nacelle earlier this month – the world’s heaviest – along with three blades.

This offshore wind turbine is designed for areas with wind speeds of 8 meters per second and above. With average winds of 10 meters per second, just one of these giants can generate 100 GWh of power annually, which is enough to power 55,000 homes. That’s enough to cut standard coal consumption by 30,000 tons and reduce CO2 emissions by 80,000 tons. Dongfang says it’s wind resistant up to 17 (200 km/h) on the extended Beaufort scale.

In May, Dongfang said it had completed static load testing on the turbine’s blades, and the turbine is now undergoing fatigue testing, which could take up to a year before the turbine is fully certified.

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Read more: Trump just killed all offshore wind zones as US power needs surge


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John Deere joins the robot revolution with GUSS acquisition

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John Deere joins the robot revolution with GUSS acquisition

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.

The latest battery-powered GUSS autonomous sprayer made its debut at the 2024 World Ag Expo show in Tulare, California, last summer, where executives from Deere called it, “the world’s first and only fully electric autonomous herbicide orchard sprayer.”

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.
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 exclusively through 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


John Deere and GUSS Automation Unveil Electric Option and Smart Apply Upgrade

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.

SOURCE I IMAGES: John Deere.


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Tesla asks court to throw out $243 million verdict in fatal Autopilot crash case

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Tesla asks court to throw out 3 million verdict in fatal Autopilot crash case

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.

The plaintiffs repeatedly asserted that Tesla had deliberately withheld or tried to delete data, which required them to bring in third party experts to discover and examine the data.

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.”

You can read through the full filing here.

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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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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