News
The Boring Company skeptics’ ‘tunnels for the rich’ argument is missing the point
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.
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.
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.”
Tesla Board Chair Robyn Denholm met with Bloomberg this morning to discuss a variety of topics, but perhaps one of the most interesting was her comments on what is being done to protect company CEO Elon Musk.
After the assassination of right-wing political commentator Charlie Kirk this week, there have been concerns about Musk’s safety, as well as that of other high-profile business leaders and political figures.
Earlier this week, Musk said himself that his security detail would be increased significantly following Kirk’s death, a move that many investors and fans of the company had requested because of political violence.
Elon Musk assures Tesla investors he will enhance his security detail
“Definitely need to enhance security,” Musk said. Tesla spent $3.3 million on Musk’s security in 2024 and January and February 2025. For reference, Meta spent over $27 million on Mark Zuckerberg’s security last year, which is higher than any other tech CEO.
During Denholm’s appearance on Bloomberg TV earlier today, she stated that the company has been focused on Musk’s security detail for “many years,” especially considering he is one of the richest people on Earth and holds an incredible amount of influence.
“It is something that we take very seriously; he takes it very seriously as well. So, again, from a board perspective, it is something we’ve discussed at length,” Denholm said.
Tesla Board Chair Robyn Denholm on increased security for CEO Elon Musk:
— TESLARATI (@Teslarati) September 12, 2025
Denholm added that she believes “there is not anyone in a boardroom that is not touched by what has happened with Charlie Kirk.”
Although Musk’s political involvement has toned down significantly in the past, he still has enemies, especially based on groups that oppose him and the company specifically. Based on this week’s events, it feels that increased security is a necessary expense Tesla must account for.
Investor's Corner
Tesla bear turns bullish for two reasons as stock continues boost
“I think from a trading perspective, it looks very interesting,” Nathan said, citing numerous signs of strength, such as holding its 200-day moving average and holding against its resistance level.
A Tesla bear is changing his tune, turning bullish for two reasons as the company’s stock has continued to get a boost over the past month.
Dan Nathan, a notorious skeptic of Tesla shares, said he is changing his tune, at least in the short term, on the company’s stock because of “technicals and sentiment,” believing the company is on track for a strong Q3, but also an investment story that will slowly veer away from its automotive business.
“I think from a trading perspective, it looks very interesting,” Nathan said, citing numerous signs of strength, such as holding its 200-day moving average and holding against its resistance level.
He also said he believes a rally for the stock could continue as it heads into the end of the quarter, especially as the $7,500 electric vehicle tax credit is coming to an end at the end of the month.
With that being said, he believes the consensus for Q3 deliveries is “probably low,” as he believes Wall Street is likely underestimating what Tesla will bring to the table on October 1 or 2 when it reports numbers for the quarter.
Tesla bear Dan Nathan has flipped his script on Tesla $TSLA shares, citing “technicals and sentiment”
— TESLARATI (@Teslarati) September 12, 2025
Tesla shares are already up over five percent today, with gains exceeding nine percent over the past five trading days, and more than fourteen percent in the past month.
While some analysts are looking at the performance of other Mag 7 stocks, movement on rates from the Federal Reserve, and other broader market factors as reasoning for Tesla’s strong performance, it appears some movement could be related to the company’s recent developments instead.
Over the past week, Tesla has made some strides in its Robotaxi program, including a new license to test the platform in the State of Nevada, which we reported on.
Tesla lands regulatory green light for Robotaxi testing in new state
Additionally, the company is riding the tails of the end of the EV tax credit, as inventory, both new and used, is running extremely low, generally speaking. Many markets do not have any vehicles to purchase as of right now, making delivery by September 30 extremely difficult.
However, there has been some adjustments to the guidelines by the IRS, which can be read here:
Tesla is trading at around $389 at 10:56 a.m. on the East Coast.
News
Tesla lands regulatory green light for Robotaxi testing in new state
This will be the third state in total where Tesla is operating Robotaxi, following Austin and California.
Tesla has landed a regulatory green light to test its Robotaxi platform in a new state, less than three months after the ride-hailing service launched in Texas.
Tesla first launched its driverless Robotaxi suite in Austin, Texas, back on June 22. Initially offering rides to a small group of people, Tesla kept things limited, but this was not to be the mentality for very long.
It continued to expand the rider population, the service area, and the vehicle fleet in Austin.
The company also launched rides in the Bay Area, but it does use a person in the driver’s seat to maintain safety. In Austin, the “Safety Monitor” is present in the passenger’s seat during local rides, and in the driver’s seat for routes that involve highway driving.
Tesla is currently testing the Robotaxi platform in other states. We reported that it was testing in Tempe, Arizona, as validation vehicles are traveling around the city in preparation for Robotaxi.
Tesla looks to make a big splash with Robotaxi in a new market
Tesla is also hoping to launch in Florida and New York, as job postings have shown the company’s intention to operate there.
However, it appears it will launch in Nevada before those states, as the company submitted its application to obtain a Testing Registry certification on September 3. It was processed by the state’s Department of Motor Vehicles Office of Business Licensing on September 10.
NEWS: Tesla has officially received approval from the Nevada DMV to start testing autonomous vehicles (robotaxis) on public roads.
Today, I confirmed directly with the Nevada DMV that @Tesla‘s application to obtain a Testing Registry certification was approved by the DMV Office… pic.twitter.com/hx5JhHBFiD
— Sawyer Merritt (@SawyerMerritt) September 11, 2025
It will then need to self-certify for operations, essentially meaning they will need to comply with various state requirements.
This will be the third state in total where Tesla is operating Robotaxi, following Austin and California.
CEO Elon Musk has stated that he believes Robotaxi will be available to at least half of the U.S. population by the end of the year. Geographically, Tesla will need to make incredible strides over the final four months of the year to achieve this.
Tesla Board Chair discusses what is being done to protect CEO Elon Musk
Tesla bear turns bullish for two reasons as stock continues boost
Tesla lands regulatory green light for Robotaxi testing in new state
-
News2 weeks agoTesla is overhauling its Full Self-Driving subscription for easier access
-
Elon Musk2 weeks agoElon Musk shares unbelievable Starship Flight 10 landing feat
-
Elon Musk1 week agoTesla’s next-gen Optimus prototype with Grok revealed
-
News6 days agoTesla launches new Supercharger program that business owners will love
-
Elon Musk6 days agoTesla Board takes firm stance on Elon Musk’s political involvement in pay package proxy
-
News2 weeks agoTesla appears to be mulling a Cyber SUV design
-
News1 week agoTesla deploys Unsupervised FSD in Europe for the first time—with a twist
-
News2 weeks agoTesla expands crazy new lease deal for insane savings on used inventory