Elon Musk’s The Boring Company is now valued at nearly $5.7 billion

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New funding for The Boring Company, announced Wednesday, comes from venture capital firms as well as real estate companies. Sequoia, a top Silicon Valley company that has previously invested in Musk, co-led the investment with Vy Capital. The deal values ​​the Boring Company at nearly $5.7 billion.

The loop is mainly underground transportation system that provides point-to-point journeys between stations where people board Tesla SUVs. The One Loop system is already operating in Las Vegas with two stations about a mile apart at the Las Vegas Convention Center. There are plans to expand the system across the Vegas Strip, with 51 stations over 29 miles.
The Boring Company is also developing a project in Fort Lauderdale, Florida, and is in talks with San Antonio, Texas. He has already announced projects in Chicago, Washington, DC and Los Angeles, but has not completed them. He faced a lawsuit from disgruntled neighbors in Los Angeles and fell out of favor when Chicago elected a new mayor. Permits have has not been completed for his DC to Baltimore project, which dates back to 2017.

“We are still very excited and want to move forward,” Fort Lauderdale Mayor Dean Trantalis told CNN Business on Thursday.

He said the government was working with the Boring Company on engineering issues for the project, which would link the town center and a nearby beach. They are working to align the route with a right of way over which the city has more control. He declined to say when it might be finished.

Critics have questioned whether operating a subway system, but with cars rather than trains, is an efficient use of tunnels, the construction of which can cost up to $1 billion per mile. The Boring Company says it is developing cheaper tunnel technology and claims its system is superior to traditional subway systems because journeys will be point-to-point and make no scheduled stops, like at other stations. (But they could potentially be slowed down by tunnel traffic in front of them.)

Musk, the CEO of Tesla, previously laid out a grander vision for the Boring Company, with people being transported through cities in dedicated autonomous vehicles at speeds of up to 120 mph. But the reality so far, in Las Vegas at least, has involved human drivers operating what look like standard Teslas at 35 mph.

The Boring Company still says it plans to eventually transition to fully autonomous operations, which will reduce the cost of operations.

Sequoia said in a blog post that the Boring Company was at an “inflection point.”

“The next few years will increase performance 10-fold by making their systems rapidly reusable and fully autonomous,” he writes.

The Boring Company says its next-generation tunneling machine is designed to be able to operate remotely and autonomously, requiring no one in the tunnel. His current iteration of the machine, called Prufrock, is designed to dig up to a mile a week. Digging tunnels faster is key to reducing costs.

The Boring Company said it also plans to build utility and freight tunnels. He did not respond to a request for comment.

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