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Elon Musk’s Boring Company gets shorter operating agreement for LVCC Loop

Credit: Teslarati via Peter Bijlsma

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3 years ago

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The Las Vegas Convention and Visitors Authority (LVCVA) recently decided to shorten its operating agreement with Elon Musk’s Boring Company with regards to the operation and maintenance of the Las Vegas Convention Center (LVCC) Loop. The Boring Company currently operates the LVCC Loop, which allows visitors to travel within the Las Vegas Convention Center campus. 

The LVCC Loop’s current iteration involves a fleet of Teslas that still require human drivers to travel within the system’s stations, though it is highly speculated that The Boring Company would eventually transition to the use of autonomous vehicles. The LVCC Loop is a simple route, and it would likely be easy for Tesla’s advanced driver-assist systems like Autopilot and Full Self-Driving to navigate the system’s tunnels without any issues. 

The LVCVA Board approved the initial LVCC Loop operations and management agreement in January 2021. Back then, the agreement provided an extension for an additional five-year period. Tuesday’s vote changed the five-year extension into a one-year extension, according to a report from the Las Vegas Review-Journal. Board members voted 11-1 to spend up to $4.5 million for a one-year agreement with The Boring Company from July 1, 2022 to June 30, 2023. The LVCVA also has the option to cancel the agreement with a four-month notice. 

While this update may seem like a blow to The Boring Company’s LVCC Loop, LVCVA Chief Financial Officer Ed Finger highlighted that the system has met the board and customers’ expectations. Finger noted that when the tunnel system started operations in May, the LVCVA gave the system a budget of $4.25 million to maintain a fleet of Tesla vehicles with drivers. For the fiscal year, the convention authority spent just under $4 million, though costs are expected to rise in the year ahead as trade shows and conventions are held on the site once more. 

“The system has met our expectations and our customers’ expectations,” Finger stated. 

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LVCVA President and CEO Steve Hill has noted that the costs of the LVCC Loop can be decreased if The Boring Company uses autonomous driving solutions. The buildout of the much more extensive Vegas Loop would likely help reduce the operating costs of the Convention Center tunnels as well. The Vegas Loop is expected to feature 18 miles of tunnels and 51 planned stations, with stops in popular locations such as Resorts World, the Harry Reid International Airport, and Allegiant Stadium, to name a few. 

So far, the LVCC Loop is designed to accommodate 4,400 passengers per hour. During CES 2022 earlier this year, the LVCVA informed Teslarati that the LVCC Loop had been able to transport 15,000 to 17,000 passengers around the Convention Center’s campus daily. The LVCC Loop’s performance during the SEMA Show in November 2021 was even more impressive, as the system was able to move 25,000 to 27,000 passengers daily. The Vegas Loop’s target is much more ambitious, with the system aiming to accommodate 57,000 commuters an hour. 

*Quotes courtesy of the Las Vegas Review-Journal.

Don’t hesitate to contact us with news tips. Just send a message to simon@teslarati.com to give us a heads up.

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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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Elon Musk

Why Tesla’s Q3 could be one of its biggest quarters in history

Tesla could stand to benefit from the removal of the $7,500 EV tax credit at the end of Q3.

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4 hours ago

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July 3, 2025

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(Credit: Tesla)

Tesla has gotten off to a slow start in 2025, as the first half of the year has not been one to remember from a delivery perspective.

However, Q3 could end up being one of the best the company has had in history, with the United States potentially being a major contributor to what might reverse a slow start to the year.

Earlier today, the United States’ House of Representatives officially passed President Trump’s “Big Beautiful Bill,” after it made its way through the Senate earlier this week. The bill will head to President Trump, as he looks to sign it before his July 4 deadline.

The Bill will effectively bring closure to the $7,500 EV tax credit, which will end on September 30, 2025. This means, over the next three months in the United States, those who are looking to buy an EV will have their last chance to take advantage of the credit. EVs will then be, for most people, $7,500 more expensive, in essence.

The tax credit is available to any single filer who makes under $150,000 per year, $225,000 a year to a head of household, and $300,000 to couples filing jointly.

Ending the tax credit was expected with the Trump administration, as his policies have leaned significantly toward reliance on fossil fuels, ending what he calls an “EV mandate.” He has used this phrase several times in disagreements with Tesla CEO Elon Musk.

Nevertheless, those who have been on the fence about buying a Tesla, or any EV, for that matter, will have some decisions to make in the next three months. While all companies will stand to benefit from this time crunch, Tesla could be the true winner because of its sheer volume.

If things are done correctly, meaning if Tesla can also offer incentives like 0% APR, special pricing on leasing or financing, or other advantages (like free Red, White, and Blue for a short period of time in celebration of Independence Day), it could see some real volume in sales this quarter.

Tesla is just a shade under 721,000 deliveries for the year, so it’s on pace for roughly 1.4 million for 2025. This would be a decrease from the 1.8 million cars it delivered in each of the last two years. Traditionally, the second half of the year has produced Tesla’s strongest quarters. Its top three quarters in terms of deliveries are Q4 2024 with 495,570 vehicles, Q4 2023 with 484,507 vehicles, and Q3 2024 with 462,890 vehicles.

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Elon Musk

Tesla Full Self-Driving testing continues European expansion: here’s where

Tesla has launched Full Self-Driving testing in a fifth European country ahead of its launch.

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8 hours ago

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July 3, 2025

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Credit: Tesla

Tesla Full Self-Driving is being tested in several countries across Europe as the company prepares to launch its driver assistance suite on the continent.

The company is still working through the regulatory hurdles with the European Union. They are plentiful and difficult to navigate, but Tesla is still making progress as its testing of FSD continues to expand.

Today, it officially began testing in a new country, as more regions open their doors to Tesla. Many owners and potential customers in Europe are awaiting its launch.

On Thursday, Tesla officially confirmed that Full Self-Driving testing is underway in Spain, as the company shared an extensive video of a trip through the streets of Madrid:

The launch of Full Self-Driving testing in Spain marks the fifth country in which Tesla has started assessing the suite’s performance in the European market.

Across the past several months, Tesla has been expanding the scope of countries where Full Self-Driving is being tested. It has already made it to Italy, France, the Netherlands, and Germany previously.

Tesla has already filed applications to have Full Self-Driving (Supervised) launched across the European Union, but CEO Elon Musk has indicated that this particular step has been the delay in the official launch of the suite thus far.

In mid-June, Musk revealed the frustrations Tesla has felt during its efforts to launch its Full Self-Driving (Supervised) suite in Europe, stating that the holdup can be attributed to authorities in various countries, as well as the EU as a whole:

Tesla Full Self-Driving’s European launch frustrations revealed by Elon Musk

“Waiting for Dutch authorities and then the EU to approve. Very frustrating and hurts the safety of people in Europe, as driving with advanced Autopilot on results in four times fewer injuries! Please ask your governing authorities to accelerate making Tesla safer in Europe.”

Tesla said last year that it planned to launch Full Self-Driving in Europe in 2025.

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Elon Musk

xAI’s Memphis data center receives air permit despite community criticism

xAI welcomed the development in a post on its official xAI Memphis account on X.

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10 hours ago

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July 3, 2025

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Elon Musk’s artificial intelligence startup xAI has secured an air permit from Memphis health officials for its data center project, despite critics’ opposition and pending legal action. The Shelby County Health Department approved the permit this week, allowing xAI to operate 15 mobile gas turbines at its facility.

Air permit granted

The air permit comes after months of protests from Memphis residents and environmental justice advocates, who alleged that xAI violated the Clean Air Act by operating gas turbines without prior approval, as per a report from WIRED. 

The Southern Environmental Law Center (SELC) and the NAACP has claimed that xAI installed dozens of gas turbines at its new data campus without acquiring the mandatory Prevention of Significant Deterioration (PSD) permit required for large-scale emission sources.

Local officials previously stated the turbines were considered “temporary” and thus not subject to stricter permitting. xAI applied for an air permit in January 2025, and in June, Memphis Mayor Paul Young acknowledged that the company was operating 21 turbines. SELC, however, has claimed that aerial footage shows the number may be as high as 35.

Critics are not giving up

Civil rights groups have stated that they intend to move forward with legal action. “xAI’s decision to install and operate dozens of polluting gas turbines without any permits or public oversight is a clear violation of the Clean Air Act,” said Patrick Anderson, senior attorney at SELC. 

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“Over the last year, these turbines have pumped out pollution that threatens the health of Memphis families. This notice paves the way for a lawsuit that can hold xAI accountable for its unlawful refusal to get permits for its gas turbines,” he added.

Sharon Wilson, a certified optical gas imaging thermographer, also described the emissions cloud in Memphis as notable. “I expected to see the typical power plant type of pollution that I see. What I saw was way worse than what I expected,” she said.

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