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The Boring Company’s skeptics need to calm down about the LVCC Loop
The Boring Company’s Las Vegas Convention Center Loop has been completed, and as with every other project from Elon Musk, the initiative has attracted a barrage of criticism from skeptics, some of whom have ridiculed and mocked the transport tunnel system. But just like SpaceX critics who insisted that orbital rockets would never land on a drone ship in the middle of the ocean, or Tesla skeptics who insisted that the Model 3 was a lemon that no one would buy, The Boring Company’s critics may very well be missing a crucial point.
The criticisms surrounding the LVCC Loop are vast, with publications like CNET noting that the system was “disappointing” and “lame” due to its capability to only transport 4,400 people from a fleet of 62 Teslas. VICE described coverage of the LVCC Loop as the “most embarrassing news clip in American transportation history.” Tech publication Futurism argued that the LVCC Loop is “incredibly inefficient.” Even dedicated EV blogs have dismissed the project as “boring.”
And these are just from some publications. A look at the reactions from social media would show numerous users, including the usual band of Tesla and SpaceX skeptics, calling out the LVCC Loop for being yet another example of why Elon Musk is a failure. This became particularly notable after celebrity Kylie Jenner posted a short video of a trip in the Las Vegas tunnels. But amidst the frothing mouths of anti-Elon Musk individuals and those that simply disbelieve the potential of The Boring Company lies one key point—the LVCC Loop, at its current state, is not the end-all and be-all of the tunneling startup’s ambitions.
One thing that Boring Company critics typically forget is the fact that the LVCC Loop’s tunnels are incredibly cheap and quick to build. It’s rarely brought up now, but The Boring Company was one of two companies that were shortlisted for the Las Vegas Convention Center transport system. The other company was Austria-based Doppelmayr Garaventa Group, which proposed a traditional above-ground campus transit system estimated to cost $215 million to complete. The LVCC Loop was completed for $52.5 million. It’s scalable as well, with the LVCC Loop easily being expanded into the larger, more expansive Vegas Loop.
While the Las Vegas Convention Center Loop’s current iteration is a conservative version of Elon Musk’s ambitious tunnel concepts, the core of The Boring Company’s innovation is present in the project. This is because ultimately, The Boring Company’s goal is to make tunneling quicker and more efficient. In this regard, the startup was able to accomplish its goals, and that’s without using its flagship tunnel boring machine. As per previous reports, The Boring Company used Godot+, an upgraded version of its first TBM, to complete the LVCC Loop.
Kylie Jenner showing off The Boring Company tunnel in Las Vegas 👀
🔥 @elonmusk pic.twitter.com/wwN0yc9zIx
— SAINT (@saint) April 14, 2021
The Boring Company is hard at work developing Prufrock, a next-generation, all-electric tunnel boring machine that’s designed to be capable of digging 1 mile per week, or about six times faster than Godot+. Prufrock is designed to begin tunneling within 48 hours of its arrival onsite as well, making its deployments very easy and quick. Machines such as Prufrock, and the incredibly low cost of its tunnels, are The Boring Company’s true disruption.
This is incredibly impressive considering that Godot+ is no slouch. While speaking to German publication Manager Magazin, Martin Herrenknecht, the founder of Herrenknecht AG, dismissed The Boring Company, stating that Elon Musk’s TBMs were only capable of drilling 20 meters in one week. In a statement to Teslarati, an individual familiar with the matter clarified that Herrenknecht’s information was inaccurate, as Godot+ had already managed to dig over 40 meters in one day.
Perhaps the most notable factor to point out amidst the intense criticisms against the LVCC Loop is the fact that the system will most definitely not stay the way it is today. Yes, it only deploys Teslas that are still driven by human drivers for now, but that will soon improve with the use of Autopilot. Yes, the system only has a capacity of 4,400 people per hour with 62 Teslas today, but the vehicles could soon travel quicker, and larger transport pods that hold 16 people per vehicle could improve the system’s capacity. It’s just a bit hard to see these things, or even acknowledge them, if one were already under the notion that The Boring Company is fraudulent, because Elon Musk.
The Boring Company is only getting started. The LVCC Loop could also be considered as a proof of concept, and it will be expanded to other areas in Las Vegas. Improvements to the LVCC Loop, such as the deployment of more Teslas and the use of Autopilot, could also be implemented quickly. Similar tunnels could be built in Florida soon as well. And once Prufrock is deployed, and once other low-cost tunnels are constructed at speeds that have never been seen before, The Boring Company’s skeptics might very well find themselves in the same boat as those who were absolutely certain that orbital rockets could not land on an autonomous barge, or that electric vehicles are simply not feasible.
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In a groundbreaking new report from Reuters, SpaceX is reportedly discussing merger possibilities with xAI ahead of the space exploration company’s plans to IPO later this year, in what would be a blockbuster move.
The outlet said it would combine rockets and Starlink satellites, as well as the X social media platform and AI project Grok under one roof. The report cites “a person briefed on the matter and two recent company filings seen by Reuters.”
Musk, nor SpaceX or xAI, have commented on the report, so, as of now, it is unconfirmed.
With that being said, the proposed merger would bring shares of xAI in exchange for shares of SpaceX. Both companies were registered in Nevada to expedite the transaction, according to the report.
On January 21, both entities were registered in Nevada. The report continues:
“One of them, a limited liability company, lists SpaceX and Bret Johnsen, the company’s chief financial officer, as managing members, while the other lists Johnsen as the company’s only officer, the filings show.”
The source also stated that some xAI executives could be given the option to receive cash in lieu of SpaceX stock. No agreement has been reached, nothing has been signed, and the timing and structure, as well as other important details, have not been finalized.
SpaceX is valued at $800 billion and is the most valuable privately held company, while xAI is valued at $230 billion as of November. SpaceX could be going public later this year, as Musk has said as recently as December that the company would offer its stock publicly.
The plans could help move along plans for large-scale data centers in space, something Musk has discussed on several occasions over the past few months.
At the World Economic Forum last week, Musk said:
“It’s a no-brainer for building solar-powered AI data centers in space, because as I mentioned, it’s also very cold in space. The net effect is that the lowest cost place to put AI will be space and that will be true within two to three years, three at the latest.”
He also said on X that “the most important thing in the next 3-4 years is data centers in space.”
If the report is true and the two companies end up coming together, it would not be the first time Musk’s companies have ended up coming together. He used Tesla stock to purchase SolarCity back in 2016. Last year, X became part of xAI in a share swap.
Tesla has announced it has hit a major milestone with Full Self-Driving subscriptions, shortly after it said it would exclusively offer the suite without the option to purchase it outright.
Tesla announced on Wednesday during its Q4 Earnings Call for 2025 that it had officially eclipsed the one million subscription mark for its Full Self-Driving suite. This represented a 38 percent increase year-over-year.
This is up from the roughly 800,000 active subscriptions it reported last year. The company has seen significant increases in FSD adoption over the past few years, as in 2021, it reported just 400,000. In 2022, it was up to 500,000 and, one year later, it had eclipsed 600,000.
NEWS: For the first time, Tesla has revealed how many people are subscribed or have purchased FSD (Supervised).
Active FSD Subscriptions:
• 2025: 1.1 million
• 2024: 800K
• 2023: 600K
• 2022: 500K
• 2021: 400K pic.twitter.com/KVtnyANWcs— Sawyer Merritt (@SawyerMerritt) January 28, 2026
In mid-January, CEO Elon Musk announced that the company would transition away from giving the option to purchase the Full Self-Driving suite outright, opting for the subscription program exclusively.
Musk said on X:
“Tesla will stop selling FSD after Feb 14. FSD will only be available as a monthly subscription thereafter.”
The move intends to streamline the Full Self-Driving purchase option, and gives Tesla more control over its revenue, and closes off the ability to buy it outright for a bargain when Musk has said its value could be close to $100,000 when it reaches full autonomy.
It also caters to Musk’s newest compensation package. One tranche requires Tesla to achieve 10 million active FSD subscriptions, and now that it has reached one million, it is already seeing some growth.
The strategy that Tesla will use to achieve this lofty goal is still under wraps. The most ideal solution would be to offer a less expensive version of the suite, which is not likely considering the company is increasing its capabilities, and it is becoming more robust.
Tesla is shifting FSD to a subscription-only model, confirms Elon Musk
Currently, Tesla’s FSD subscription price is $99 per month, but Musk said this price will increase, which seems counterintuitive to its goal of increasing the take rate. With that being said, it will be interesting to see what Tesla does to navigate growth while offering a robust FSD suite.
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Tesla confirms Robotaxi expansion plans with new cities and aggressive timeline
Tesla plans to launch in Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas. It lists the Bay Area as “Safety Driver,” and Austin as “Ramping Unsupervised.”
Tesla confirmed its intentions to expand the Robotaxi program in the United States with an aggressive timeline that aims to send the ride-hailing service to several large cities very soon.
The Robotaxi program is currently active in Austin, Texas, and the California Bay Area, but Tesla has received some approvals for testing in other areas of the U.S., although it has not launched in those areas quite yet.
However, the time is coming.
During Tesla’s Q4 Earnings Call last night, the company confirmed that it plans to expand the Robotaxi program aggressively, hoping to launch in seven new cities in the first half of the year.
Tesla plans to launch in Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas. It lists the Bay Area as “Safety Driver,” and Austin as “Ramping Unsupervised.”
These details were released in the Earnings Shareholder Deck, which is published shortly before the Earnings Call:
🚨 BREAKING: Tesla plans to launch its Robotaxi service in Dallas, Houston, Phoenix, Miami, Orlando, Tampa, and Las Vegas in the first half of this year pic.twitter.com/aTnruz818v
— TESLARATI (@Teslarati) January 28, 2026
Late last year, Tesla revealed it had planned to launch Robotaxi in Las Vegas, Phoenix, Dallas, and Houston, but Tampa and Orlando were just added to the plans, signaling an even more aggressive expansion than originally planned.
Tesla feels extremely confident in its Robotaxi program, and that has been reiterated many times.
Although skeptics still remain hesitant to believe the prowess Tesla has seemingly proven in its development of an autonomous driving suite, the company has been operating a successful program in Austin and the Bay Area for months.
In fact, it announced it achieved nearly 700,000 paid Robotaxi miles since launching Robotaxi last June.
🚨 Tesla has achieved nearly 700,000 paid Robotaxi miles since launching in June of last year pic.twitter.com/E8ldSW36La
— TESLARATI (@Teslarati) January 28, 2026
With the expansion, Tesla will be able to penetrate more of the ride-sharing market, disrupting the human-operated platforms like Uber and Lyft, which are usually more expensive and are dependent on availability.
Tesla launched driverless rides in Austin last week, but they’ve been few and far between, as the company is certainly easing into the program with a very cautiously optimistic attitude, aiming to prioritize safety.
SpaceX reportedly discussing merger with xAI ahead of blockbuster IPO
Tesla hits major milestone with Full Self-Driving subscriptions
