What is The Boring Company, Elon Musk’s Crazy Project?

Elon Musk, founder of Tesla, is behind the startup The Boring Company which aims to revolutionize urban mobility.

The subway is nice. But with your own electric car, preferably a Tesla, it’s even better! No need to wait, make long connections, be in contact with people of dubious hygiene… And then, an American can hardly become independent without a car, as distances—even within cities—are much greater than those in Europe.

This relationship with cars in the United States is the source of enormous traffic jams, especially in Los Angeles and New York, where the population density is very high. So, instead of encouraging everyone to use public transportation more or carpool, companies are scratching their heads to find solutions.

The Boring Company, a clever play on words with “to bore” (to drill) and “boring” (dull), is a company founded in 2016 by Elon Musk, specializing in tunnel construction. The main goal is to reduce traffic congestion in big cities by creating an underground network for electric cars.

The mission of The Boring Company is displayed prominently: “Solve traffic, enable rapid point-to-point transportation, and transform cities.” The entire approach hinges on improving tunnel boring techniques to make creation faster and cheaper. One idea is to reduce tunnel diameters to cut costs and speed up construction. Consequently, cars follow each other in a queue—no overtaking. The vehicles, necessarily electric, also reduce air evacuation needs since no exhaust gases are produced.

As early as 2017, a Tesla Model S completed a first 3.2 km journey in a test tunnel dug on the SpaceX grounds.

What about safety?

Several projects are already underway, such as in Las Vegas and Chicago. But these projects are progressing very slowly. Besides local residents’ critics and environmental defenders, obtaining permits to drill tunnels in cities is far from easy due to the numerous existing networks. Electric, water, drainage, other metro or train systems—subsoils are already heavily congested.

It is difficult, in Europe, to see such a model emerge. Tunnel safety has been central since the Mont-Blanc tunnel tragedy in 1999, where 39 people lost their lives. The Boring Company naturally equips its tunnels with emergency exits, but claustrophobia remains a significant obstacle to acceptance.

To reduce risks, The Boring Company is developing a system where cars activate autonomous driving modes to eliminate the risk human error might pose. This is why tests are obviously carried out with Tesla vehicles of the CEO…

What is the business model?

The business model of The Boring Company is based on several key pillars, reflecting the company’s innovative approach and ambitious goals in transportation and infrastructure.

The primary revenue source would come from access rights: essentially a toll. The Boring Company is also working on establishing its own public transportation network called The Loop.

Obviously, part of the construction costs would be covered by municipalities. In Las Vegas, a first tunnel, just 1300 meters long, opened in April 2021 at a cost of €44 million. The shuttles are Tesla Model 3 cars driven by drivers under the huge Las Vegas Convention Center. More of an attraction than a true mobility service, this has attracted harsh criticism from taxpayers.

Will The Boring Company make a breakthrough in 2024? With Elon Musk, one should always expect surprises.

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