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The Boring Company skeptics’ ‘tunnels for the rich’ argument is missing the point

The Boring Company prepares to lower the drill head for the People Mover tunnel which will connect convention halls as part of the LVCCD Phase 2 construction in the Red Lot east of the south Hall at the Las Vegas Convention center on Monday, Oct. 28, 2019. (Mark Damon/Las Vegas News Bureau)

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The Boring Company’s Las Vegas Convention Center Loop is nearing its completion, and with it comes the emergence of Elon Musk critics arguing that the tunneling startup’s efforts are practically useless. Over the past months, the LVCC Loop has received varying degrees of skepticism and mockery that are very reminiscent of the criticisms that have been thrown at Tesla and SpaceX on a consistent basis. 

A look at the comments of a video showcasing the theoretical capacity of the LVCC Loop would show this. While a good number of responses expressed some open-mindedness about the tunneling startup’s public transportation project, comments mocking the company for just building a subway or a train system are abounding. Criticism about the Loop system being “tunnels for the rich” have also been expressed. 

Inasmuch as these arguments may be compelling to some, the arguments, especially those about the Loop system being a way for Elon Musk to get more money to line his pockets, do not really hold water. This argument is debunked by a simple look into Elon Musk’s other businesses, SpaceX and Tesla, and the strategy that he has employed so far. 

(Credit: The Boring Company)

Musk’s Strategies

Simply put, if Musk were only focused on gaining as much money as he can, SpaceX launches would not be among the cheapest in the industry. Crew Dragon flights would definitely not be as affordable as they are now. The Dragon capsule is far more modern than Russia’s Soyuz capsule but it’s less expensive in price. What does this mean? Perhaps for Musk, it’s not just about making as much money as possible. 

This point is highlighted by Tesla in its Q3 earnings call, with Musk and CFO Zachary Kirkhorn emphasizing that the company’s production savings are usually passed on to customers. The prices of the Model S over the years prove this. The Model S Long Range Plus variant now costs $69,420 to start. That’s a great value for a fairly large vehicle with over 400 miles of range, tons of storage, and impressive performance, somewhat dated design notwithstanding. 

The same thing is true with Teslas as a whole. Teslas are still expensive, but comparable vehicles are more expensive for what they offer. The Plaid Model S may cost about $140K, but the Taycan Turbo S, arguably the best that legacy auto has to offer, starts at about $180K. Cheaper EVs like the Hongguang MINI EV in China may be far more affordable, but they offer very little tech. GM’s MINI EV has outsold the Model 3 in China, but that’s a bare-bones electric car that doesn’t even have airbags. Ultimately, when it comes to rival vehicles with comparable specs like the Xpeng P7, Tesla’s cars like the Model 3 are still bang-for-your-buck. 

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Subsurface Station | Credit: Boring Company

Long-term Affordability

If there’s anything about products and services that Musk develops with his team, it is the fact that they are relatively cheap to maintain. SpaceX’s rockets can get refurbished at a pretty good cost, allowing the company to be even more aggressive with its launch pricing. Tesla’s cars are cheaper to maintain than comparable gas or diesel-powered vehicles. The Boring Company’s Loop systems will likely be the same way—simple and affordable to maintain. 

Pair this with the fact that Musk does not seem to be focused solely on squeezing as much profit from every customer and it seems that the Loop system is bound to be quite affordable when it does get released. The Boring Company notes that rides in the Loop would be less than half of the price of a regular taxi ride. That’s a great start, and it would likely be improved even further as the tunneling startup optimizes its operations over time. 

The Boring Company’s tunnels, thanks to the company’s use of smaller tunnel boring machines and all-electric people-movers, are dirt-cheap compared to traditional tunnels such as those used in subway systems. Ultimately, these tunneling innovations are where the true disruption of the Boring Company lies. The Boring Company can build tunnels faster and cheaper—and that, ultimately, is why in the case of the Las Vegas Convention Center Loop, it wouldn’t really be as smart or innovative to “just build a train.” 

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Elon Musk

Elon Musk is now a remote DOGE worker: White House Chief of Staff

The Tesla and SpaceX CEO Elon Musk is no longer working from the West Wing.

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Credit: Elon Musk/X

In a conversation with the New York Post, White House Chief of Staff Susie Wiles stated that Tesla and SpaceX CEO Elon Musk is no longer working from the West Wing.

As per the Chief of Staff, Musk is still working for DOGE—as a remote worker, at least.

Remote Musk

In her conversation with the publication, Wiles stated that she still talks with Musk. And while the CEO is now working remotely, his contributions still have the same net effect. 

“Instead of meeting with him in person, I’m talking to him on the phone, but it’s the same net effect,” Wiles stated, adding that “it really doesn’t matter much” that the CEO “hasn’t been here physically.” She also noted that Musk’s team will not be leaving.

“He’s not out of it altogether. He’s just not physically present as much as he was. The people that are doing this work are here doing good things and paying attention to the details. He’ll be stepping back a little, but he’s certainly not abandoning it. And his people are definitely not,” Wiles stated.

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Back to Tesla

Musk has been a frequent presence in the White House during the Trump administration’s first 100 days in office. But during the Q1 2025 Tesla earnings call, Musk stated that he would be spending substantially less time with DOGE and substantially more time with Tesla. Musk did emphasize, however, that DOGE’s work is extremely valuable and critical.

“I think I’ll continue to spend a day or two per week on government matters for as long as the President would like me to do so and as long as it is useful. But starting next month, I’ll be allocating probably more of my time to Tesla and now that the major work of establishing the Department of Government Efficiency is done,” Musk stated.

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Elon Musk

Tariff reprieve might be ‘Tesla-friendly,’ but it’s also an encouragement to others

Tesla stands to benefit from the tariff reprieve, but it has some work cut out for it as well.

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tesla employee
(Photo: Tesla)

After Secretary of Commerce Howard Lutnick made adjustments to the automotive tariff program that was initially announced, many quickly pointed to the reprieve as “Tesla-friendly.”

While that may be the case right now, it was also a nudge of encouragement to other companies, Tesla included, to source parts from the U.S. in an effort to strengthen domestic manufacturing. Many companies are close, and it will only take a handful of improvements to save themselves from tariffs on their cars as well.

Yesterday, Sec. Lutnick confirmed that cars manufactured with at least 85 percent of domestic content will face zero tariffs. Additionally, U.S. automakers would receive credit up to 15 percent of the value of vehicles to offset the cost of imported parts.

Big Tesla win? Sec Lutnick says cars with 85% domestic content will face zero tariffs

“This is ‘finish your cars in America and you win’,” Lutnick said.

Many were quick to point out that only three vehicles currently qualify for this zero-tariff threshold: all three are Teslas.

However, according to Kelley Blue Book’s most recent study that revealed who makes the most American cars, there are a lot of vehicles that are extremely close to also qualifying for these tariff reductions.

Tesla has three vehicles that are within five percent, while Ford, Honda, Jeep, Chevrolet, GMC, and Volkswagen have many within just ten percent of the threshold.

Tesla completely dominates Kogod School’s 2024 Made in America Auto Index

It is within reach for many.

Right now, it is easy to see why some people might think this is a benefit for Tesla and Tesla only.

But it’s not, because Tesla has its Cybertruck, Model S, and Model X just a few percentage points outside of that 85 percent cutoff. They, too, will feel the effects of the broader strategy that the Trump administration is using to prioritize domestic manufacturing and employment. More building in America means more jobs for Americans.

Credit: Tesla

However, other companies that are very close to the 85 percent cutoff are only a few components away from also saving themselves the hassle of the tariffs.

Ford has the following vehicles within just five percent of the 85 percent threshold:

  • Ford Mustang GT automatic (80%)
  • Ford Mustang GT 5.0 (80%)
  • Ford Mustang GT Coupe Premium (80%)

Honda has several within ten percent:

  • Honda Passport All-Wheel-Drive (76.5%)
  • Honda Passport Trailsport (76.5)

Jeep has two cars:

  • Jeep Wrangler Rubicon (76%)
  • Jeep Wrangler Sahara (76%)

Volkswagen has one with the ID.4 AWD 82-kWh (75.5%). GMC has two at 75.5% with the Canyon AT4 Crew Cab 4WD and the Canyon Denali Crew Cab 4WD.

Chevrolet has several:

  • Chevrolet Colorado 2.7-liter (75.5%)
  • Chevrolet Colorado LT Crew Cab 2WD 2.7-liter (75.5%)
  • Chevrolet Colorado Z71 Crew Cab 4WD 2.7-liter (75.5%)

These companies are close to reaching the 85% threshold, but adjustments need to be made to work toward that number.

Anything from seats to fabric to glass can be swapped out for American-made products, making these cars more domestically sourced and thus qualifying them for the zero-tariff boundary.

Frank DuBois of American University said that manufacturers like to see stability in their relationships with suppliers and major trade partners. He said that Trump’s tariff plan could cause “a period of real instability,” but it will only be temporary.

Now is the time to push American manufacturing forward, solidifying a future with more U.S.-made vehicles and creating more domestic jobs. Tesla will also need to scramble to make adjustments to its vehicles that are below 85%.

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Tesla Cybertruck RWD production in full swing at Giga Texas

Videos of several freshly produced Cybertruck LR RWD units were shared on social media platform X.

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Credit: Joe Tegtmeyer/X

It appears that Tesla is indeed ramping the production of the Cybertruck Long Range Rear Wheel Drive (LR RWD), the most affordable variant of the brutalist all-electric pickup truck.

Videos of several freshly produced Cybertruck LR RWD units were shared on social media platform X.

Giga Texas Footage

As per longtime Tesla watcher Joe Tegtmeyer, Giga, Texas, was a hotbed of activity when he conducted his recent drone flyover. Apart from what seemed to be Cybercab castings being gathered in the complex, a good number of Cybertruck LR RWD units could also be seen in the facility’s staging area. The Cybertruck LR RWD units are quite easy to spot since they are not equipped with the motorized tonneau cover that is standard on the Cybertruck AWD and Cyberbeast.

The presence of the Cybertruck LR RWD units in Giga Texas’ staging area suggests that Tesla is ramping the production of the base all-electric pickup truck. This bodes well for the vehicle, which is still premium priced despite missing a good number of features that are standard in the Cybertruck AWD and Cyberbeast.

Cybertruck Long Range RWD Specs

The Cybertruck LR RWD is priced at $69,990 before incentives, making it $10,000 more affordable than the Cybertruck AWD. For its price, the Cybertruck Long Range RWD offers a range of 350 miles per charge if equipped with its 18” standard Wheels. It can also add up to 147 miles of range in 15 minutes using a Tesla Supercharger.

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Much of the cost-cutting measures taken by Tesla are evident in the cabin of the Cybertruck LR RWD. This could be seen in its textile seats, standard console, seven-speaker audio system with no active noise cancellation, and lack of a 9.4” second-row display. It is also missing the motorized tonneau cover, the 2x 120V and 1x 240V power outlets on the bed, and the 2x 120V power outlets in the cabin. It is also equipped with an adaptive coil spring suspension instead of the adaptive air suspension in the Cybertruck AWD and Cyberbeast.

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