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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.
Elon Musk
Elon Musk explains why Tesla’s 4680 battery breakthrough is a big deal
Tesla confirmed in its Q4 and FY 2025 update letter that it is now producing 4680 cells whose anode and cathode were produced during the dry electrode process.
Tesla’s breakthroughs with its 4680 battery cell program mark a significant milestone for the electric vehicle maker. This was, at least, as per Elon Musk in a recent post on social media platform X.
Tesla confirmed in its Q4 and FY 2025 update letter that it is now producing 4680 cells whose anode and cathode were produced during the dry electrode process.
Why dry-electrode matters
In a post on X, Elon Musk stated that making the dry-electrode process work at scale was “incredibly difficult,” calling it a major achievement for Tesla’s engineering, production, and supply chain teams, as well as its partner suppliers. He also shared his praise for the Tesla team for overcoming such a difficult task.
“Making the dry electrode process work at scale, which is a major breakthrough in lithium battery production technology, was incredibly difficult. Congratulations to the @Tesla engineering, production and supply chain teams and our strategic partner suppliers for this excellent achievement!” Musk wrote in his post.
Tesla’s official X account expanded on Musk’s remarks, stating that dry-electrode manufacturing “cuts cost, energy use & factory complexity while dramatically increasing scalability.” Bonne Eggleston, Tesla’s Vice President of 4680 batteries, also stated that “Getting dry electrode technology to scale is just the beginning.”
Tesla’s 4680 battery program
Tesla first introduced the dry-electrode concept at Battery Day in 2020, positioning it as a way to eliminate solvent-based electrode drying, shrink factory footprints, and lower capital expenditures. While Tesla has produced 4680 cells for some time, the dry cathode portion of the process proved far more difficult to industrialize than expected.
Together with its confirmation that it is producing 4680 cells in Austin with both electrodes manufactured using the dry process, Tesla has also stated that it has begun producing Model Y vehicles with 4680 battery packs. As per Tesla, this strategy was adopted as a safety layer against trade barriers and tariff risks.
“We have begun to produce battery packs for certain Model Ys with our 4680 cells, unlocking an additional vector of supply to help navigate increasingly complex supply chain challenges caused by trade barriers and tariff risks,” Tesla wrote in its Q4 and FY 2025 update letter.
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Even Tesla China is feeling the Optimus V3 fever
As per Tesla China, Optimus V3 is “about to be unveiled.”
Even Tesla China seems to have caught the Optimus V3 fever, with the electric vehicle maker teasing the impending arrival of the humanoid robot on its official Weibo account.
As per Tesla China, Optimus V3 is “about to be unveiled.”
Tesla China hypes up Optimus V3
Tesla China noted on its Weibo post that Optimus V3 is redesigned from first principles and is capable of learning new tasks by observing human behavior. The company has stated that it is targeting annual production capacity of up to one million humanoid robots once manufacturing scales.
During the Q4 and FY 2025 earnings call, CEO Elon Musk stated that Tesla will wind down Model S and Model X production to free up factory space for the pilot production line of Optimus V3.
Musk later noted that Giga Texas should have a significantly larger Optimus line, though that will produce Optimus V4. He also made it a point to set expectations with Optimus’ production ramp, stating that the “normal S curve of manufacturing ramp will be longer for Optimus.”
Tesla China’s potential role
Tesla’s decision to announce the Optimus update on Weibo highlights the importance of the humanoid robot in the company’s global operations. Giga Shanghai is already Tesla’s largest manufacturing hub by volume, and Musk has repeatedly described China’s manufacturers as Tesla’s most legitimate competitors.
While Tesla has not confirmed where Optimus V3 will be produced or deployed first, the scale and efficiency of Gigafactory Shanghai make it a plausible candidate for future humanoid robot manufacturing or in-factory deployment. Musk has also suggested that Optimus could become available for public purchase as early as 2027, as noted in a CNEV Post report.
“It’s going to be a very capable robot. I think long-term Optimus will have a very significant impact on the US GDP. It will actually move the needle on US GDP significantly. In conclusion, there are still many who doubt our ambitions for creating amazing abundance. We are confident it can be done, and we are making the right moves technologically to ensure that it does,” Musk said during the earnings call.
Elon Musk
Tesla director pay lawsuit sees lawyer fees slashed by $100 million
The ruling leaves the case’s underlying settlement intact while significantly reducing what the plaintiffs’ attorneys will receive.
The Delaware Supreme Court has cut more than $100 million from a legal fee award tied to a shareholder lawsuit challenging compensation paid to Tesla directors between 2017 and 2020.
The ruling leaves the case’s underlying settlement intact while significantly reducing what the plaintiffs’ attorneys will receive.
Delaware Supreme Court trims legal fees
As noted in a Bloomberg Law report, the case targeted pay granted to Tesla directors, including CEO Elon Musk, Oracle founder Larry Ellison, Kimbal Musk, and Rupert Murdoch. The Delaware Chancery Court had awarded $176 million to the plaintiffs. Tesla’s board must also return stock options and forego years worth of pay.
As per Chief Justice Collins J. Seitz Jr. in an opinion for the Delaware Supreme Court’s full five-member panel, however, the decision of the Delaware Chancery Court to award $176 million to a pension fund’s law firm “erred by including in its financial benefit analysis the intrinsic value” of options being returned by Tesla’s board.
The justices then reduced the fee award from $176 million to $70.9 million. “As we measure it, $71 million reflects a reasonable fee for counsel’s efforts and does not result in a windfall,” Chief Justice Seitz wrote.
Other settlement terms still intact
The Supreme Court upheld the settlement itself, which requires Tesla’s board to return stock and options valued at up to $735 million and to forgo three years of additional compensation worth about $184 million.
Tesla argued during oral arguments that a fee award closer to $70 million would be appropriate. Interestingly enough, back in October, Justice Karen L. Valihura noted that the $176 award was $60 million more than the Delaware judiciary’s budget from the previous year. This was quite interesting as the case was “settled midstream.”
The lawsuit was brought by a pension fund on behalf of Tesla shareholders and focused exclusively on director pay during the 2017–2020 period. The case is separate from other high-profile compensation disputes involving Elon Musk.
Elon Musk explains why Tesla’s 4680 battery breakthrough is a big deal
Even Tesla China is feeling the Optimus V3 fever
