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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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Tesla has finally clarified the situation regarding the viral crash in Texas where a Model 3 slammed into a home.
CEO Elon Musk replied to reports on Monday that stated the crash was due to the company’s Full Self-Driving or Autopilot suite, which seemed unlikely to those who are familiar with it. Video showed the car slamming into a house at an excessive rate of speed, making it highly unlikely the crash was due to the suite’s operation, as it does not travel at those speeds in residential areas.
Musk said:
“This makes no sense. FSD drives slowly through neighborhood streets, and this was a high-speed crash!”
Tesla’s Head of AI, Ashok Elluswamy, added context, revealing that the company’s data shows the driver “manually overrode self-driving by pressing the accelerator all the way to 100%.”
He revealed the speed reached by the car was 73 MPH, and the accelerator was still pressed “even after the crash.”
Yup. In this case, the driver manually overrode self-driving by pressing the accelerator all the way to 100% of the accel pedal in this residential area. They reached a speed of 73 mph during the crash, and had the accelerator pressed even after the crash.
— Ashok Elluswamy (@aelluswamy) June 22, 2026
Authorities are reportedly investigating “whether Tesla’s Autopilot system played a role after a Model 3 left the roadway…slammed through a brick house at high speed and fatally struck Matha Avila as she sat inside,” the New York Post reported.
The National Highway Traffic Safety Administration (NHTSA) is now investigating the crash. Tesla will work with the agency to provide them with whatever information they need in order to clarify the cause of the crash.
Similarly, Tesla had claims of a fatal accident in Harris County, Texas, a few years ago. Early reports indicated that Full Self-Driving was the cause of the crash. After the National Transportation Safety Board (NTSB) worked with Tesla, the agency proved there was “no use of the Autopilot system at any time during this ownership period of the vehicle, including the time frame up to the last transmitted timestamp on April 17, 2021.”
Tesla alleged “driverless” crash in Texas: What is known so far
“Application of the accelerator pedal was found to be as high as 98.8 percent,” the NTSB said in their findings. The highest recorded speed in the five seconds leading up to the impact was 67 miles per hour. The area where the crash occurred is residential, and Texas State laws have default speed limits of 30 MPH in residential streets.
This appears to be a similar situation. However, an investigation will prove what happened for sure.
SpaceX announced today that it commenced its first-ever public bond offering, marking a significant step in the newly public company’s capital markets strategy.
The company announced an offering of senior unsecured notes expected to raise at least $20 billion.
The move comes just a short time after SpaceX completed one of the largest initial public offerings in history. In mid-June, the company priced shares at $135 and raised more than $85 billion, propelling founder Elon Musk’s net worth past the trillion-dollar mark and giving the firm substantial liquidity.
🚨 SpaceX has announced its inaugural offering of senior unsecured notes.
The net proceeds will be used to repay outstanding loans under its bridge loan facility in full.
This inaugural debt offering represents a financing milestone for SpaceX, which previously depended… pic.twitter.com/pcOZuVbTRv
— TESLARATI (@Teslarati) June 22, 2026
According to the company’s SEC filing, the net proceeds from the notes will be used primarily to repay in full the outstanding borrowings under its existing bridge loan facility, cover related fees and expenses, and fund general corporate purposes. The offering is being conducted under Rule 144A, as well as Regulation S, targeting qualified institutional buyers and non-U.S. investors. Notes will be unsecured obligations ranking equally with other unsubordinated debt.
The $20 billion bridge loan was used to refinance approximately $17.5 billion in higher-cost “junk” debt tied to X and xAI. SpaceX had merged with xAI in February 2026 in an all-stock deal. The bridge facility, which matures in September 2027, had represented the bulk of SpaceX’s long-term debt.
SpaceX officially acquires xAI, merging rockets with AI expertise
In connection with the bond launch, SpaceX disclosed it held approximately $100.8 billion in cash and cash equivalents as of June 19. Investor calls began on the announcement date, with pricing and launch expected shortly thereafter. Rating agencies have assigned investment-grade ratings to the proposed bonds, reflecting confidence in SpaceX’s dominant position in commercial launches and the growth trajectory of its Starlink internet offering.
The debt raise also allows SpaceX to optimize its balance sheet by replacing short-term, higher-cost bridge financing with longer-date, lower-cost fixed-income securities. This provides greater financial flexibility to support capital-intensive initiatives, including the development of Starship, the expansion of the Starlink constellation, and the integration of AI capabilities following the xAI combination.
SpaceX shares (NASDAQ: SPCX) fell sharply on the news, dropping over 16 percent overall on the market on Monday. The stock had surged initially after debuting but pulled back amid profit-taking and broader market dynamics.
Overall, the bond offering underscores SpaceX’s transition to a mature public company with access to diverse funding sources. It positions the firm to pursue its long-term vision of multiplanetary expansion and AI infrastructure, while maintaining a disciplined approach to its capital structure in a high-growth but capital-heavy industry.
SpaceX confirmed today that it has officially signed its third massive compute deal, providing compute at its Colossus data center in Southaven, Mississippi.
Reflection AI will gain immediate access to NVIDIA GB300 chips at SpaceX’s Colossus 2 data center. In return, Reflection will pay SpaceX $150 million per month starting on July 1, with total payments reaching approximately $6.3 billion if the contract runs through its duration, which is until 2029. Either party can terminate the agreement with 90 days’ notice after the initial three-month period.
CNBC first reported the deal.
🚨 SpaceXAI has agreed to a new compute deal with Reflection AI.
Reflection gets access to NIVIDIA GB300s, and will pay $150M per month to SpaceXAI for the compute. pic.twitter.com/bNPare8U5u
— TESLARATI (@Teslarati) June 22, 2026
This latest partnership highlights SpaceX’s strategy of commercializing its massive Colossus supercomputing infrastructure, originally developed to power Elon Musk’s Grok AI models. The company has rapidly expanded its customer base in the AI sector following its February 2026 merger with xAI, a transaction that valued the combined entity at $1.25 trillion.
SpaceX has previously signed significant compute deals with other major players.
It granted Anthropic exclusive access to the full capacity of its Colossus 1 data center, which exceeds 300 megawatts and includes over 220,000 NVIDIA GPUs. Details from SpaceX’s IPO filings indicate Anthropic will pay $1.25 billion per month through May 2029, potentially generating around $45 billion over the term of the deal.
Additionally, Google agreed to pay SpaceX $920 million per month for compute capacity from October 2026 through June 2029. This 32-month period will provide Google access to roughly 110,000 NVIDIA GPUs, along with supporting processors and memory. Capacity ramps up through September at a reduced fee, with termination options after the first year.
SpaceXA also established arrangements for computing power with Cursor, an AI coding startup. SpaceX acquired them in a $60 billion all-stock deal.
These arrangements position SpaceX’s collective position as an AI infrastructure powerhouse with high-margin revenue potential. The Google deal alone could generate nearly $29.5 billion over its term, while the Reflection contract adds another $6.3 billion.
Combined with the Anthropic arrangement, SpaceX stands to realize tens of billions in revenue from compute leasing in the coming years, which diversifies beyond SpaceX’s traditional rocket launches and Starlink operation.
The deals underscore growing demand for advanced AI training and inference capacity amid chip shortages and surging model development needs. Reflection, valued at $25 billion and focused on “American open intelligence” with government and national security ties, cited recent restrictions on closed models as validation for open-source approaches.
For SpaceX, the partnerships transform capital-intensive data centers into flexible revenue sources while supporting its broader AI ambitions after the company has gone public.
Tesla finally clarifies fatal Texas crash, confirms driver manually overrode acceleration
SpaceX makes $20 billion move to optimize its balance sheet
