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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 just gave what is perhaps its biggest signal yet that the launch of the Cybercab, its autonomous ride-hailing-geared car, is imminent.
The Cybercab has been spotted outside of Gigafactory Texas in massive numbers over the past few days, with hundreds of units being stored on property just days after the vehicle received a Certificate of Conformity from the EPA.
Today, things were a bit different.
Cybercabs spotted on Giga Texas property today had an addition: a Cybercab decal on the side, reminiscent of the “Robotaxi” ones that were placed on Model Ys just as the company launched its ride-sharing platform about a year ago.
Giga Texas drone operator Joe Tegtmeyer noticed the change today:
Tesla Cybercabs are now getting “Cybercab” logos on the side of them!
Tesla did the same with Model Ys that were given “Robotaxi” logos: https://t.co/DanANtw1m7 pic.twitter.com/FqOhH0S9Ks
— TESLARATI (@Teslarati) June 19, 2026
Tesla could be signaling that the Cybercab is preparing to enter the Robotaxi fleet in the coming weeks or months with this move. It seems more symbolic than anything; Tesla is ready to throw Cybercabs in the ride-hailing platform just as it did with Model Ys last year.
The addition of the Certificate of Conformity awarded to the Cybercab is another major factor working to Tesla’s advantage. The company now has permission from the EPA to allow the vehicle to operate on public roads and enter the chain of commerce. It’s officially street legal.
Tesla Cybercab specs revealed: range, curb weight, range ratings, and more
The big question that remains is whether Tesla will be able to operate the car without a safety monitor, especially considering it plans to put the car out there without a steering wheel or pedals. With the Cybercab only having a seating capacity of two, it is hard to believe Tesla will even consider putting a Safety Monitor in the car.
It did recently self-certify as Level 4 and has the ability to operate driverless vehicles in the State of Texas under a law that took effect on May 28. You can read more about that here:
Tesla’s Robotaxi dreams just took a massive step toward reality
We’d imagine Cybercabs will be on the roads as soon as July, but August will likely be a better estimate of when the car will be entered into the Cybercab fleet. It all depends at where Tesla is, as they’ve truly prioritized safety with the rollout of the Robotaxi platform.
Elon Musk has publicly questioned Moody’s credit assessments following the rating agency’s decision to assign SpaceX a Baa1 investment-grade rating, two notches above Tesla’s Baa3. The comments came amid discussions comparing the two companies’ financial profiles.
SpaceX earned its first-time Baa1 rating with a stable outlook from Moody’s. The agency highlighted the company’s leadership in orbital launches, the growing recurring revenue from its Starlink satellite network, strong vertical integration, U.S. government contracts, and emerging opportunities in AI infrastructure.
These factors were cited as supporting robust cash flows, margin expansion, and financial flexibility.
Musk responded directly: “Tesla’s credit rating is ridiculously low tbh,” and added, “Yeah, makes no sense. Tesla has over $40B in cash, no debt, and is consistently profitable!” His remarks underscored Tesla’s balance sheet strength and profitability at a time when many traditional automakers continue to report losses in the shift to electric vehicles.
Yeah, makes no sense.
Tesla has over $40B in cash, no debt and is consistently profitable!
— Elon Musk (@elonmusk) June 19, 2026
Tesla maintains a leading position in the global EV market, with diversification into energy and storage, battery technology, and robotics through projects like Optimus. Recent financial updates show the company generated positive free cash flow of $1.4 billion in Q1 2026, supported by operating cash flow of $3.9 billion. Cash and short-term investments stood at approximately $44.7 billion.
Moody’s has affirmed Tesla’s Baa3 issuer rating with a stable outlook in periodic reviews, acknowledging the company’s EV leadership, technology strengths, including AI for autonomous vehicles, solid profitability, and strong liquidity.
Tesla (TSLA) scores Baa3 Moody’s rating for ‘stable’ outlook
However, the agency has also noted challenges in the automotive segment and expectations for margin pressures.
Musk’s critique highlights a common debate about how traditional rating methodologies apply to high-growth, capital-intensive technology companies. SpaceX benefits from long-term government-backed contracts and diversified, recurring revenue streams, while Tesla’s valuation reflects heavy investment in future technologies such as autonomy and robotics.
Both ratings remain investment-grade, yet the one-notch difference has fueled online discussion about potential inconsistencies in evaluating innovative firms.
The exchange comes as SpaceX explores financing options following its recent valuation milestones, while Tesla continues executing on its multi-year roadmap. Musk’s pointed response serves as a reminder that credit ratings, though influential for borrowing costs, represent one lens through which markets assess corporate strength—and that company leaders often view their financial positions through the lens of long-term innovation and cash generation rather than short-term risk metrics alone.
A new report from Reuters claims that a transport authority in Sweden is pushing back against the approval of Tesla’s Full Self-Driving suite because it will travel over speed limits.
The report says the Swedish Transport Administration (TRV) recommends the European Union votes against FSD’s approval. TRV believes it should not be approved until Tesla disables FSD’s ability to speed.
TRV sent a letter to the European Union’s Technical Committee on Motor Vehicles (TCMV), which is set to meet on June 30 to discuss the potential approval of the Tesla FSD suite in the country. Tesla, which has received various approvals in Europe over the past two months, has not provided a comment.
Teslas operating on FSD do travel over the speed limit, depending on the Speed Profile that is chosen. Drivers have the ability to disengage FSD at any point; Tesla specifically states that those supervising the suite are responsible for its actions.
Let’s cut to the chase: humans operating any vehicle speed almost daily in the United States. Realistically, speed limits in the U.S. are more frequently treated as speed minimums. However, other countries are different, and driving behaviors are less aggressive.
TRV believes that “allowing automated systems to systematically exceed legal speed limits…risks undermining both the legal framework and the expected safety benefits of vehicle automation,” the report stated. It’s surprising that Tesla has not received this claim from other countries previously.
This could be a good argument to bring Max Speed back, the setting that previously allowed the driver to choose the absolute fastest the car would travel.
This would still put the responsibility of supervision in the hands of the driver. It would allow the driver to choose whether the car would travel over the speed limit or not, acknowledging that they set the speed, and if they get pulled over, there would be no ability to argue it.
However, it does not seem as if this is something Tesla will do, especially considering many U.S. drivers have requested the feature in an effort to eliminate speeding or at least tone it down. The company has not shown any interest in bringing it back.
Tesla has approvals for FSD in Europe in Estonia, Lithuania, Denmark, the Netherlands, and Belgium.
Tesla Cybercab launch is imminent after latest sighting at Giga Texas
Elon Musk says this part of Tesla ‘makes no sense’
