Connect with us

News

Elon Musk’s Boring Company meets opposition over Las Vegas tunnel bid

(Credit: The Boring Company)

Published

on

The Boring Company’s planned 2-mile Las Vegas tunnel is seeing some opposition, with some members of the city’s Convention and Visitors Authority (LVCVA) expressing their reservations about the tunneling startup’s capability to deliver on the project.

Las Vegas Convention and Visitors Authority CEO Steve Hill has stated that a contract has been negotiated with The Boring Company to build a transport tunnel that could move people around the Las Vegas Convention Center. The cost of the project is estimated to be $52.5 million, far less than the cost of a conventional above-ground transit system. In the event that The Boring Company does not receive a certificate of occupancy for the tunnel system, the LVCVA will get back its entire investment.

While the Boring Company’s deal appears to be a cost-effective proposal that carries little financial risk to the LVCVA, some board members have expressed their reservations for the project nonetheless. Board members Michele Fiore and Carolyn Goodman, for one, recently spoke in favor of an alternative proposal from Austria-based Doppelmayr Garaventa Group, which involves the construction of an above-ground transit system.

This Monday, Goodman sent an email to her fellow board members urging them to support the proposal from the Austria-based company, according to a report from the Las Vegas Sun. In her message, Goodman cited Doppelmayr’s experience in the transport industry, comparing it favorably against The Boring Company’s inexperience.

Advertisement

“Doppelmayr has been in existence for 125 years. They already have projects here that are operating successfully. The Boring Co. is three years old and has yet to deliver a final package on anything. (The tourism and convention business) is a $60 billion industry that every part of this state relies on for dollars. This is really about deliverability — we can’t fail on this,” she wrote.

Doppelmayr’s initial proposal to the LVCVA involved the creation of an above-ground transit system that would cost an estimated $215 million to complete. In her letter to the LVCVA’s board, Goodman argued that the Austria-based company would have been able to build a transport system for as little as $85 million. The board member even invited Doppelmayr CEO Markus Schrentewein to give a presentation at a board meeting on Tuesday.

“During the bidding process, if we would have been given the chance to present and explain in more detail our proposal, I believe we would have come up with a more favorable project for the LVCVA campus,” the Doppelmayr CEO said.

Michele Fiore, who also works as a councilwoman in Las Vegas, also expressed her reservations over the Boring Company’s proposal. In a statement to local media, Fiore echoed Goodman’s sentiments about the Austria-based company’s experience. “The risk of the Boring Co. is quite high, while the risk with Doppelmayr is quite low. How do we justify not really looking at Doppelmayr as a solid and proven company? I’m not so sure the Boring Co. is the company to do this job,” she said.

Advertisement

Hill, for his part, noted that The Boring Company’s proposal was initially selected due to cost, timing, and scalability. At $52.5 million, the tunneling startup’s plan is cost-effective, and the project could be completed while the campuses’ expansion work is ongoing. The Boring Company’s transport tunnel could also be expanded to other areas of Las Vegas in the future. “It’s significantly less expensive than any of the alternatives that we reviewed. Frankly, for the funding capacity of the LVCVA, this is the system that we could go forward with. We’re going to bring a contract next week that will eliminate all financial risk from the LVCVA,” Hill said.

In a previous statement, Boring Company President Steve Davis described the Las Vegas project as an opportunity for both the tunneling startup and the city. “People will be excited. They will ride it, and if they like it, we’ll probably get more interest. Nevada looks for a responsible way to say yes. We think it offers a lot of opportunity. I think others see that as well. And we will put in that work to see if it’s the right choice for Las Vegas,” he said.

A Las Vegas Convention and Visitors Authority spokesperson has noted that the board will vote on the Boring Company’s proposal on May 22, when the board meets for a budget hearing.

Advertisement

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.

Advertisement
Comments

News

Tesla puts Giga Berlin in Plaid Mode with new massive investment

The facility, Tesla’s first in Europe, opened in 2022 and has become a cornerstone for Model Y production and, increasingly, in-house battery manufacturing. Recent announcements highlight a dual focus on scaling vehicle output and advancing vertical integration through 4680 battery cells.

Published

on

Credit: Tesla

Tesla is pushing forward with significant upgrades at its Gigafactory Berlin-Brandenburg in Grünheide, Germany, signaling renewed confidence in its European operations despite past market challenges.

The facility, Tesla’s first in Europe, opened in 2022 and has become a cornerstone for Model Y production and, increasingly, in-house battery manufacturing. Recent announcements highlight a dual focus on scaling vehicle output and advancing vertical integration through 4680 battery cells.

In April, plant manager André Thierig announced a 20 percent increase in Model Y production starting in July, following a record Q1 output of more than 61,000 vehicles. To support the ramp-up, Tesla plans to hire approximately 1,000 new employees beginning in May and convert 500 temporary workers to permanent positions.

The move is expected to lift weekly production significantly, addressing rebounding demand in Europe after a challenging 2025.

Advertisement

The expansion builds on earlier progress. In 2025, Tesla secured partial approvals to add roughly 2 million square feet of factory space, raising potential annual vehicle capacity from around 500,000 toward 800,000 units, with longer-term ambitions approaching one million vehicles per year. Logistical improvements, new infrastructure, and battery-related facilities are already underway on company-owned land.

Battery production is the latest major focus. On May 12, Thierig revealed an additional $250 million investment in the on-site cell factory. This more than doubles the planned 4680 battery cell capacity to 18 gigawatt-hours annually—up from the 8 GWh target set in December 2025—while creating over 1,500 new battery-related jobs.

Advertisement

Total cell investments at the site now exceed previous figures, bringing the factory closer to full vertical integration: cells, packs, and vehicles produced under one roof. Tesla describes this as unique in Europe and a step toward stronger supply chain resilience.

The plans come amid regulatory and community hurdles. Earlier expansion proposals faced protests over environmental concerns and water usage, leading to phased approvals beginning in 2024. Tesla has navigated these by emphasizing sustainable practices and economic benefits, including thousands of local jobs in Brandenburg.

With nearly 12,000 employees already on site and production steadily climbing, Gigafactory Berlin is poised for growth. The combined vehicle and battery expansions position the plant as a key hub for Tesla’s European ambitions, potentially making it one of the continent’s largest manufacturing complexes if local support continues.

As EV demand recovers, these investments underscore Tesla’s commitment to scaling efficiently in Germany while addressing regional supply chain needs.

Advertisement
Continue Reading

News

Honda gives up on all-EV future: ‘Not realistic’

Mibe believes the demand for its gas vehicles is certainly strong enough and has changed “beyond expectations.” As many drivers went for EVs a few years back, hybrids are becoming more popular for consumers as they offer the best of both worlds.

Published

on

honda logo with red paint
Ivan Radic, CC BY 2.0 , via Wikimedia Commons

Honda has given up on a previous plan to completely changeover to EVs by 2040, a new report states. The company’s CEO, Toshihiro Mibe, said that the idea is “not realistic.”

Mibe believes the demand for its gas vehicles is certainly strong enough and has changed “beyond expectations.” As many drivers went for EVs a few years back, hybrids are becoming more popular for consumers as they offer the best of both worlds.

Mibe said (via Motor1):

“Because of the uncertainty in the business environment and also the customer demand, is changing beyond our expectation and, therefore, we have judged that it’ll be difficult to achieve. That ratio [100-percent electric in 2040] is not realistic as of now. We have withdrawn this target.”

Advertisement

Instead of going all-electric, Honda still wants to oblige by its hopes to be net carbon neutral by 2050. It will do this by focusing on those popular hybrid powertrains, planning to launch 15 of them by March 2030.

Honda will invest 4.4 trillion yen, or almost $28 billion, to build hybrid powertrains built around four and six-cylinder gas engines.

There are so many companies abandoning their all-electric ambitions or even slowing their roll on building them so quickly. Ford, General Motors, Mercedes, and Nissan have all retreated from aggressive EV targets by either cancelling, delaying, or pausing the development of electric models.

Hyundai’s 2030 targets rely on mixed offerings of electric, hybrid & hydrogen vehicles

Advertisement

Early-decade pledges from multiple brands proved overly ambitious as infrastructure lags, battery costs remain high in some markets, and many buyers prefer hybrids for their convenience and range. Toyota has long championed hybrids, while others have quietly extended internal-combustion timelines.

For Honda—historically known for reliable gasoline engines—this shift leverages its core strengths while buying time to refine electric technology. Whether the hybrid-heavy strategy will protect market share in an increasingly competitive landscape remains to be seen, but one thing is clear: the gas engine is far from dead at Honda, unfortunately.

Continue Reading

Elon Musk

Delta Airlines rejects Starlink, and the reason will probably shock you

In a pointed exchange on X, Elon Musk defended SpaceX’s uncompromising approach to Starlink’s in-flight internet service, explaining why Delta Air Lines walked away from a deal.

Published

on

Delta Airlines Airbus photographed April 2024 Delta-owned. No expiration date, unrestricted use.

SpaceX frontman Elon Musk explained on Wednesday why commercial airline Delta got cold feet over offering Starlink for stable internet on its flights — and the reason will probably shock you.

In a pointed exchange on X, Elon Musk defended SpaceX’s uncompromising approach to Starlink’s in-flight internet service, explaining why Delta Air Lines walked away from a deal.

Delta rejected Starlink because it insisted on routing all connectivity through its branded “Delta Sync” portal rather than allowing a simple Starlink experience.

Instead, the airline partnered with Amazon’s Project Kuiper—rebranded as Amazon Leo—for high-speed Wi-Fi on up to 500 aircraft, with rollout targeted for 2028. At the time of the announcement, Kuiper had roughly 300 satellites in orbit, while Starlink operated more than 10,400.

Advertisement

The use of the “Delta Sync” portal would not work for SpaceX, as Musk went on to say that:

“SpaceX requires that there be no annoying ‘portal’ to use Starlink. Starlink WiFi must just work effortlessly every time, as though you were at home. Delta wanted to make it painful, difficult and expensive for their customers. Hard to see how that is a winning strategy.”

Musk doubled down in a follow-up post:

“Yes, SpaceX deliberately accepted lower revenue deals with airlines in exchange for making Starlink super easy to use and available to all passengers.”

Advertisement

Advertisement

SpaceX has structured its airline agreements to prioritize zero-friction access—no captive portals, no SkyMiles logins, no paywalls or ads blocking basic connectivity.

While this means forgoing higher-margin deals that would let carriers monetize the service more aggressively, it ensures Starlink feels like home broadband at 35,000 feet. Passengers on partner airlines such as United, Qatar Airways, and Air France have already praised the service for enabling seamless video calls, streaming, and work mid-flight without interruptions.

Delta’s choice reflects a different philosophy. By keeping Wi-Fi behind its Delta Sync ecosystem, the airline aims to drive loyalty program engagement and control the digital passenger journey. Yet, critics argue this short-term control comes at the expense of immediate competitiveness.

Airlines already installing Starlink are pulling ahead in customer satisfaction surveys, while Delta passengers face years of reliance on slower, legacy systems until Leo launches.

Advertisement

SpaceX’s decision to trade revenue for simplicity will pay off in the longer term, as Starlink is already positioning itself as the default high-speed option for carriers that value passenger satisfaction over incremental fees.

Musk’s focus on creating not only a great service but also a reasonable user experience highlights SpaceX’s prowess with Starlink as it continues to expand across new partners and regions.

Continue Reading