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Elon Musk’s Boring Company abandons one of its planned LA tunnel projects
As The Boring Company prepares to hold a public showing for its first completed tunnel this coming December 10, Elon Musk’s tunneling startup has revealed that it is dropping its plans to dig a tunnel under Sepulveda Blvd. on the Westside of LA. The company’s decision to abandon its project comes amidst its settlement with a group of Westside advocates who alleged that local government violated state law when it decided to exempt the Boring Company’s proof-of-concept tunnel from review under the California Environmental Quality Act (CEQA).
In a joint statement on Tuesday, The Boring Company, together with the plaintiffs of the case, stated that they have “amicably settled” the lawsuit. The terms of the two parties’ settlement remain confidential, though, as noted by an attorney for the Westside advocates to The San Diego Union-Tribune. With plans for the Sepulveda Blvd tunnel now abandoned, The Boring Co. would be focusing on building the Dugout Loop, a tunnel system connecting the Dodger Stadium and a Metro station, instead.
The legal opposition against the Sepulveda tunnel emerged last May, when two local neighborhood groups — the Brentwood Residents Coalition and the Sunset Coalition — filed a lawsuit, alleging that the project is actually part of a larger system of tunnels that would be used for public transportation in the future.
The tunneling startup was moving briskly through the permit process then, partly since The Boring Company noted that the tunnel would not be used to transport commuters, allowing the project to gain an exemption from environmental review. This was indicated on The Boring Company’s FAQ on its website.
“The tunnel would be used for construction logistics verification, system testing, safety testing, operating procedure verification, and line-switching demonstrations. Phase 1 would not be utilized for public transportation until the proof-of-process tunnel is deemed successful by County government, City government, and TBC.”
At the heart of the plaintiffs’ lawsuit was a map that The Boring Company released for its planned tunnel routes. Included in the proposed routes was a line that appeared to trace the route of the Sepulveda Blvd tunnel. In their lawsuit, the plaintiffs noted that “the state’s stringent environmental review requirements cannot be evaded by chopping large projects into smaller pieces that taken individually appear to have no significant environmental impacts.” The Westside advocates also voiced their disapproval of the city’s commission to approve a route that The Boring Company would use for hauling 80,000 cubic yards of dirt from the tunnel.
The Boring Company’s projects in LA’s Westside have attracted their own fair share of critics. When the advocates filed their lawsuit earlier this year, for one, Santa Monica City Manager Rick Cole aired his skepticism of the tunneling startup’s concept as a whole.
“We’ll have people stuck in traffic on the surface, and this miracle fast lane underground for the people who can afford it. It’ll be toll lanes on steroids,” he said, according to the Los Angeles Times.
While The Boring Company’s settlement with the Westside advocates is a notable roadblock to its projects in the LA area, the tunneling startup is nonetheless making progress on its other activities. The test tunnel under the SpaceX headquarters in Hawthorne is now getting refined and is set for public viewing on December 10, and the construction of a prototype garage-elevator that connects directly to a tunnel is seeing a lot of activity. Permits to establish The Brick Store, an outlet where Boring Bricks would be sold, have also been filed.
Apart from these, the tunneling startup is preparing to start its most ambitious project to date — the high-profile Chicago-O’Hare high-speed transport line, which is expected to begin construction soon. Updates about the project have been scarce so far, though photographs taken by Teslarati photographers Pauline Acalin and Tom Cross suggest that a gantry for the Chicago tunnel line, as well as what appears to be a next-generation Tunnel Boring Machine, is under construction.
Tesla executive Lars Moravy appeared today in front of the U.S. Senate Commerce Committee to highlight the importance of modernizing autonomy standards by establishing a federal framework that would reward innovation and keep the country on pace with foreign rivals.
Moravy, who is Tesla’s Vice President of Vehicle Engineering, strongly advocated for Congress to enact a national framework for autonomous vehicle development and deployment, replacing the current patchwork of state-by-state rules.
These rules have slowed progress and kept companies fighting tooth-and-nail with local legislators to operate self-driving projects in controlled areas.
Tesla already has a complete Robotaxi model, and it doesn’t depend on passenger count
Moravy said the new federal framework was essential for the U.S. to “maintain its position in global technological development and grow its advanced manufacturing capabilities.
He also said in a warning to the committee that outdated regulations and approval processes would “inhibit the industry’s ability to innovate,” which could potentially lead to falling behind China.
Being part of the company leading the charge in terms of autonomous vehicle development in the U.S., Moravy highlighted Tesla’s prowess through the development of the Full Self-Driving platform. Tesla vehicles with FSD engaged average 5.1 million miles before a major collision, which outpaces that of the human driver average of roughly 699,000 miles.
Moravy also highlighted the widely cited NHTSA statistic that states that roughly 94 percent of crashes stem from human error, positioning autonomous vehicles as a path to dramatically reduce fatalities and injuries.
🚨 Tesla VP of Vehicle Engineering, Lars Moravy, appeared today before the U.S. Senate Commerce Committee to discuss the importance of outlining an efficient framework for autonomous vehicles:
— TESLARATI (@Teslarati) February 4, 2026
Skeptics sometimes point to cybersecurity concerns within self-driving vehicles, which was something that was highlighted during the Senate Commerce Committee hearing, but Moravy said, “No one has ever been able to take over control of our vehicles.”
This level of security is thanks to a core-embedded central layer, which is inaccessible from external connections. Additionally, Tesla utilizes a dual cryptographic signature from two separate individuals, keeping security high.
Moravy also dove into Tesla’s commitment to inclusive mobility by stating, “We are committed with our future products and Robotaxis to provide accessible transportation to everyone.” This has been a major point of optimism for AVs because it could help the disabled, physically incapable, the elderly, and the blind have consistent transportation.
Overall, Moravy’s testimony blended urgency about geopolitical competition, especially China, with concrete safety statistics and a vision of the advantages autonomy could bring for everyone, not only in the U.S., but around the world, as well.
Tesla launched a new configuration of the Model Y this week, bringing more complexity to its lineup of the vehicle and adding a new, lower entry point for those who require an All-Wheel-Drive car.
However, the broadening of the Model Y lineup in the United States could signal a somewhat uncomfortable reality for Tesla fans and car buyers, who have been vocal about their desire for a larger, full-size SUV.
Tesla has essentially moved in the opposite direction through its closure of the Model X and its continuing expansion of a vehicle that fits the bill for many, but not all.
Tesla brings closure to Model Y moniker with launch of new trim level
While CEO Elon Musk has said that there is the potential for the Model Y L, a longer wheelbase configuration of the vehicle, to enter the U.S. market late this year, it is not a guarantee.
Instead, Tesla has prioritized the need to develop vehicles and trim levels that cater to the future rollout of the Robotaxi ride-hailing service and a fully autonomous future.
But the company could be missing out on a massive opportunity, as SUVs are a widely popular body style in the U.S., especially for families, as the tighter confines of compact SUVs do not support the needs of a large family.
Although there are other companies out there that manufacture this body style, many are interested in sticking with Tesla because of the excellent self-driving platform, expansive charging infrastructure, and software performance the vehicles offer.
Additionally, the lack of variety from an aesthetic and feature standpoint has caused a bit of monotony throughout the Model Y lineup. Although Premium options are available, those three configurations only differ in terms of range and performance, at least for the most part, and the differences are not substantial.
Minor Expansions of the Model Y Fail to Address Family Needs for Space
Offering similar trim levels with slight differences to cater to each consumer’s needs is important. However, these vehicles keep a constant: cargo space and seating capacity.
Larger families need something that would compete with vehicles like the Chevrolet Tahoe, Ford Expedition, or Cadillac Escalade, and while the Model X was its largest offering, that is going away.
Tesla could fix this issue partially with the rollout of the Model Y L in the U.S., but only if it plans to continue offering various Model Y vehicles and expanding on its offerings with that car specifically. There have been hints toward a Cyber-inspired SUV in the past, but those hints do not seem to be a drastic focus of the company, given its autonomy mission.
Model Y Expansion Doesn’t Boost Performance, Value, or Space
You can throw all the different badges, powertrains, and range ratings on the same vehicle, it does not mean it’s going to sell better. The Model Y was already the best-selling vehicle in the world on several occasions. Adding more configurations seems to be milking it.
The true need of people, especially now that the Model X is going away, is going to be space. What vehicle fits the bill of a growing family, or one that has already outgrown the Model Y?
Not Expanding the Lineup with a New Vehicle Could Be a Missed Opportunity
The U.S. is the world’s largest market for three-row SUVs, yet Tesla’s focus on tweaking the existing Model Y ignores this. This could potentially result in the Osborne Effect, as sales of current models without capturing new customers who need more seating and versatility.
Expansions of the current Model Y offerings risk adding production complexity without addressing core demands, and given that the Model Y L is already being produced in China, it seems like it would be a reasonable decision to build a similar line in Texas.
Listening to consumers means introducing either the Model Y L here, or bringing a new, modern design to the lineup in the form of a full-size SUV.
Elon Musk
Elon Musk reiterates Tesla Optimus’ most sci-fi potential yet
Musk shared his comments in a series of posts on social media platform X.
Elon Musk recently reiterated one of the most ambitious forecasts for Tesla’s humanoid robot, Optimus, stating it could become the first real-world example of a Von Neumann machine. He also noted once more that Optimus would be Tesla’s biggest product.
Musk shared his comments in a series of posts on social media platform X.
Optimus as a von Neumann machine
In response to a post on X that pondered on sci-fi timelines becoming real, Musk wrote that “Optimus will be the first Von Neumann machine, capable of building civilization by itself on any viable planet.” In a separate post, Musk wrote that Optimus will be Tesla’s “biggest product ever,” a phrase he has used in the past to describe the humanoid robot’s importance to the electric vehicle maker.
A Von Neumann machine is a class of theoretical self-replicating systems originally proposed in the mid-20th century by the mathematician John von Neumann. In his concept, von Neumann described machines that could travel to other worlds, use local materials to create copies of themselves, and carry out large-scale tasks without outside intervention.
Elon Musk’s broader plans
Considering Musk’s comments, it appears that Optimus would eventually be capable of performing complex work autonomously in environments beyond Earth. If Optimus could achieve such a feat, it could very well unlock humanity’s capability to explore locations beyond Earth. The idea of space exploration becomes more than feasible.
Elon Musk has discussed space-based AI compute, large-scale robotic production, and the role of SpaceX’s Starship in transporting hardware and materials to other planets. While Musk did not detail how Optimus would fit with SpaceX’s exploration activities, his Von Neumann machine comments suggest he is looking at Tesla’s robotics as part of a potential interplanetary ecosystem.
Tesla exec pleads for federal framework of autonomy to U.S. Senate Committee
Tesla Model Y lineup expansion signals an uncomfortable reality for consumers
