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

(Credit: The Boring Company)

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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.

“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.

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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.

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.

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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.

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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Tesla CEO Elon Musk outlines expectations for Cybercab production

“…initial production is always very slow and follows an S-curve. The speed of production ramp is inversely proportionate to how many new parts and steps there are. For Cybercab and Optimus, almost everything is new, so the early production rate will be agonizingly slow, but eventually end up being insanely fast.”

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Credit: Tesla

Tesla CEO Elon Musk outlined expectations for Cybercab production as the vehicle is officially set to start rolling off manufacturing lines at the company’s Giga Texas factory in less than 100 days.

Cybercab is specifically designed and catered to Tesla’s self-driving platform and Robotaxi ride-hailing service. The company has been pushing hard to meet its self-set expectations for rolling out an effective self-driving suite, and with the Cybercab coming in under 100 days, it now needs to push for Unsupervised Self-Driving in the same time frame.

Tesla CEO Elon Musk confirms Robotaxi is set to go unsupervised

This is especially pertinent because the Cybercab is expected to be built without a steering wheel or pedals, and although some executives have said they would build the car with those things if it were necessary.

However, Musk has maintained that the Cybercab will not have either of those things: it will have two seats and a screen, and that’s it.

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With production scheduled for less than 100 days, Musk broke down what people should expect from the initial manufacturing phases, being cautiously optimistic about what the early stages will likely entail:

“…initial production is always very slow and follows an S-curve. The speed of production ramp is inversely proportionate to how many new parts and steps there are. For Cybercab and Optimus, almost everything is new, so the early production rate will be agonizingly slow, but eventually end up being insanely fast.”

Musk knows better than most about the challenges of ramping up production of vehicles. With the Model 3, Musk routinely refers to it as “production hell.” The Cybertruck, because of its polarizing design and stainless steel exterior, also presented challenges to Tesla.

The Cybercab definitely presents an easier production process for Tesla, and the company plans to build millions of units per year.

Musk said back in October 2024:

“We’re aiming for at least 2 million units a year of Cybercab. That will be in more than one factory, but I think it’s at least 2 million units a year, maybe 4 million ultimately.”

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When April comes, we will find out exactly how things will move forward with Cybercab production.

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Tesla reveals awesome Model 3 and Model Y incentive, but it’s ending soon

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Credit: Tesla Europe & Middle East/X

Tesla has revealed an awesome Model 3 and Model Y incentive to help consumers make the jump to one of its affordable mass-market vehicles, but it’s ending soon.

Tesla is offering one free upgrade on eligible inventory of the Model 3 and Model Y until February 2.

This would help buyers receive the most expensive paid option on the vehicle at no additional cost, meaning white interior or a more premium paint option will be free of charge if you take delivery on or before February 2.

Tesla states on its website for the offer:

“Only for limited inventory while supplies last. Price displayed on inventory listings already deducts the cost of the free option.”

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This latest incentive is just another advantage Tesla has by selling its vehicles directly and not using some sort of dealership model that relies on approvals from higher-ups. It is important to note that these programs are offered to help stimulate demand and push vehicles into customers’ hands.

It is not the only incentive Tesla is currently offering, either. In fact, there is a much larger incentive program that Tesla is working on, and it has to do with Full Self-Driving transfers, which could result in even more sales for the company through Q1.

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Tesla is ending its FSD Transfer program on March 31, as it plans to transition to a Subscription-only basis with the self-driving suite for anyone who has not already purchased it outright.

This could help drive some on-the-fence buyers to new vehicles, but it remains to be seen. Given the timing of the program’s demise, it appears Tesla is hoping to use it to add additional sales and bolster a strong Q1 2026.

Interior and exterior paint colors can add up to $2,000 if you choose the most premium Ultra Red body color, or an additional $1,000 for the Black and White interior option. The discount, while small, could help get someone their preferred design configuration, instead of settling for something that is not quite what they want.

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Tesla Full Self-Driving gets outrageous insurance offer with insanely cheap rates

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Credit: Ashok Elluswamy/X

Tesla Full Self-Driving is getting an outrageous insurance offer with insanely cheap rates that will slash the cost of coverage by 50 percent.

Lemonade, a digital insurance company, has launched its first-of-a-kind product known as Lemonade Autonomous Car Insurance, and it is starting with an exclusive offer to FSD. The new offer will cut rates for FSD-engaged driving by “approximately 50 percent,” highlighting the data that shows a significantly safer driving environment when the suite is activated and engaged.

The company also said it plans to introduce even cheaper rates as Tesla continues to release more advanced FSD versions through software updates. Tesla has been releasing new FSD versions every few weeks, highlighting vast improvements for those who have the latest AI4 chip.

The announcement comes just a few months afterLemonade Co-Founder and President Shai Wininger said that he wanted to insure FSD vehicles for “almost free.” He said that Tesla’s API complemented Lemonade’s AI-based platform because it provides “richer and more accurate driving behavior data than traditional UBI devices.”

Tesla Full Self-Driving gets an offer to be insured for ‘almost free’

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In mid-December, Lemonade then offered Tesla owners in California, Oregon, and Arizona the opportunity to connect their vehicles directly to the company’s app, which would provide a direct connection and would require a separate telematics device, which is required with other insurance providers who offer rates based on driving behaviors.

This latest development between Lemonade and Tesla is something that Wininger believes will be different because of the advanced nature of FSD:

“Traditional insurers treat a Tesla like any other car, and AI like any other driver. But a car that sees 360 degrees, never gets drowsy, and reacts in milliseconds can’t be compared to a human.”

He went on to say that the existing pay-per-mile product has given the company something that no traditional insurer has been able to offer. This comes through Lemonade’s “unique tech stack designed to collect massive amounts of real driving data for precise, dynamic pricing.”

The reputation FSD has gathered over the past few years is really impressive. Wininger backed this with some more compliments:

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“Teslas driven with FSD are involved in far fewer accidents. By connecting to the Tesla onboard computer, our models are able to ingest incredibly nuanced sensor data that lets us price our insurance with higher precision than ever before.”

The product will begin its official rollout in Arizona on January 26. Oregon will get it a month later.

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