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Elon Musk shares first look at Tesla Model X zipping through a Boring Company tunnel
After winning the coveted contract to build Chicago’s high-speed transit tunnel, the Boring Company held a press conference at the city’s Block 37 Superstation to formally announce the tunneling startup’s high-profile project. Dubbed by Mayor Rahm Emanuel as the “X,” the high-speed tunnel system is designed to link downtown Chicago to O’Hare Airport.
Prior to the press conference, The Boring Company shared a video of a Tesla Model X being carried by “electric skates” through a tunnel on Twitter. While incredibly brief, the short clip gives an idea of the speed that Chicago commuters can expect from the tunneling startup’s transportation system.
Tesla and SpaceX CEO Elon Musk made an appearance at Block 37 Superstation, sharing the stage with the city mayor. As noted by Chicago Tribune reporter Bill Ruthart on Twitter, Emanuel was very optimistic about the Boring Company’s project, stating that the high-speed tunnels would “not cost the city a penny” and that it builds on Chicago’s “legacy of innovation.” Emanuel noted that part of the reason behind the city’s decision to select the Boring Co. was Musk’s record and vision.
“We’re taking a bet on a guy who doesn’t like to fail — and his resources. There are a bunch of Teslas on the road. He put SpaceX together. He’s proven something. The risk — with no financial risk — is I’m betting on a guy who has proven in space, auto and now, a tunnel, that he can innovate and create something of the future,” the Chicago Mayor said.
Addressing Chicago’s press, Elon Musk expressed his thanks at the city and Mayor Emanuel for placing his faith in the Boring Co. Musk noted that he hopes to start digging in as soon as four months. Digging shall commence from both Loop and O’Hare ends. When asked about the high-speed tunnels’ funding, Musk noted that he is confident he can raise the estimated ~$1 billion for the project, considering that he has already raised $22 billion among all of his companies. The serial tech entrepreneur also noted that the downtown Chicago-O’Hare tunnel is “quite economically appealing.” Lastly, Musk announced that The Boring Company would tap both union and non-union workers for manpower.
The city of Chicago formally announces The Boring Company’s downtown-O’Hare tunneling project. [Credit: The Boring Company]
The Boring Company’s high-speed Chicago tunnel system is expected to accommodate almost 2,000 passengers per direction every hour, with pods leaving every 30 seconds to 2 minutes. Cost for the high-speed rail is estimated to be between $20-$25 per person, roughly half the price of a typical ride-share or cab. The trip is expected to last only 12 minutes with pods traveling more than 100 mph. The upcoming project’s preliminary route will be Block 37, Randolph St. west, under the Kennedy north, north under Halsted, northwest under Milwaukee, northwest under Elston before again crossing under the Kennedy near Bryn Mawr Avenue and heading west to O’Hare, according to people familiar with the matter.
The Boring Company and the Chicago mayor have noted that it is far too early to provide a concrete timeline for the completion of the high-speed tunnel system. Apart from handling the costs of the project, The Boring Company will also construct a new station at O’Hare and help in the completion of the Block 37 Superstation. Overall, the ~$1 billion tunnel is part of Chicago’s $8.5 billion overhaul of O’Hare Airport.
The Boring Company’s contract with Chicago stands as the tunneling startup’s first high-profile project. So far, the Boring Co. has only embarked on smaller-scale test projects in Los Angeles, as well as a tunnel beneath SpaceX in Hawthorne, CA, which will offer free demo rides to the public upon regulatory approval.
Tesla weirdly confirmed that its steering wheel-less and pedal-less Cybercab vehicle is now in the process of giving employees rides, a huge milestone for the vehicle program.
But the entire thing was super strange. On Friday, Tesla released a video stating that there was “Cool news from Giga Texas” and that employees were now taking rides in Cybercabs that have no manual controls. The units seen on public roads are engineering vehicles that have manual controls inside, a necessity as Tesla moved through the testing phase.
However, Tesla removed the video and reposted it shortly after with a more vague title. It seems like the employee rides are still going, but the video was adjusted slightly. The initial upload showed employees doing things like watching movies and adjusting the climate, but these snippets were removed in the second upload.
Cool news from Giga Texas pic.twitter.com/gvbG456Tzw
— Tesla Robotaxi (@robotaxi) July 11, 2026
Both images below were uploaded with the first video, but were removed after Tesla re-uploaded the announcement. These are not available in the second upload
Credit: Tesla
Credit: Tesla
Nevertheless, the announcement from Tesla is that the Cybercab is operating with employees inside who can control the vehicle’s audio, video, climate, and destination settings through their smartphone app.
Tesla has already been testing Cybercab engineering units, but last month, it was able to self-certify for SAE Level 4, which would enable unsupervised self-driving in Texas. The company is moving toward that, and the plans have always been to launch Cybercab rides this year.
The Cybercab is potentially looked at as the next generation of Tesla’s mobility leg. For the past 15 years, the company has been known as somewhat of an automaker, among many other things. However, these passenger vehicles that Tesla has manufactured are now moving into a new realm, as they will eventually drive themselves with no supervision thanks to the Full Self-Driving suite.
The Cybercab is just the next step of that: a true vehicle developed for the sole purpose of ride-hailing. It has no human controls, it has only two seats, and it will get passengers from Point A to Point B with no awkward driver, no need for manual inputs, and with no stress.
Tesla is moving forward with other developments related to the Cybercab project as well. However, the big announcement will come when Tesla finally announces that it is launching Cybercab rides to the general public, something that it plans to launch either late this year or early 2027.
SpaceX is gearing up for the 13th Starship integrated flight test, which is currently scheduled for Thursday, July 16, with the launch window opening up at 6:30 PM E.T. from Starbase in South Texas.
This mission, the second with the V3 Starship and Super Heavy vehicles, builds directly on the foundation of Flight 12 while introducing ambitious new objectives, including the debut deployment of next-generation Starlink V3 satellites.
The rapid iteration between flights underscores SpaceX’s “fail fast, learn faster” philosophy, with engineers addressing specific anomalies from the previous test to push reusability and payload capabilities further.
Starship’s thirteenth flight test is preparing to launch as early as Thursday, July 16 → https://t.co/Rp7VwBzpWx pic.twitter.com/jdpFlQUEpF
— SpaceX (@SpaceX) July 11, 2026
Flight 12 occurred earlier in 2026 and encountered notable challenges that became catalysts for Flight 13’s improvements. Issues included booster course deviations during the flip maneuver after stage separation, reusability problems with Super Heavy’s Raptor engine relights for the boostback burn, and an engine-out event on the Starship upper stage during its propulsion phase.
These hiccups, while they did not prevent overall mission success, highlighted areas needing refinement for more consistent performance and higher safety margins in future operational flights.
Elon Musk called it Epic: The full story of SpaceX’s Starship Flight 12
In response, SpaceX implemented a comprehensive suite of both hardware and software upgrades.
For the booster, engineers developed a more robust stage separation flip sequence to maintain stable orientation and prevent off-course rotation. Hardware modifications have enhanced Raptor re-light reliability during the boostback burn, complemented by updated engine alarms and abort logic tailored for multi-engine operations. On the Starship side, propulsion system changes directly tackle the Flight 12 engine-out scenario, improving redundancy and operational resilience.
Another major focus of SpaceX for Flight 13 was the advancements in the heat shield. New tile designs and attachment mechanisms, including tests of aft flaps and skirts, aim to boost durability.
Load-sensing tiles will measure real-time stresses during atmospheric entry, while white-painted tiles simulate missing ones as imaging targets. Six of the 20 Starlink V3 satellites carried aboard will feature specialized cameras to scan and transmit heat shield imagery back to ground teams, providing critical data for future return-to-launch-site attempts.
The mission profile also includes a higher dynamic pressure ascent to stress-test the thermal protection system and increase payload potential, alongside a planned in-space Raptor engine relight demonstration.
The V3 Starlink satellites themselves mark a leap forward, equipped with laser links, deployable solar arrays, and improved antennas to expand network capacity and speeds.
The company wrote:
“For the first time, Starship will carry V3 Starlink satellites to space, which aim to greatly expand the network’s capacity and user speeds. As part of this initial test, Starship is planned to deploy 20 satellites which will extend solar arrays and antennas and will attempt to connect with ground stations in South Africa and the larger Starlink constellation via high-capacity lasers. Six of the satellites have been modified with a suite of cameras to scan Starship’s heat shield and transmit imagery down to operators to continue testing methods of analyzing Starship’s heat shield readiness for return to launch site on future missions. Several tiles on Starship have been painted white to simulate missing tiles and serve as imaging targets in the test.”
This dual-purpose flight tests both vehicle reliability and satellite tech in one integrated operation.
These iterative changes, catalyzed by Flight 12’s data, position Starship closer to rapid reusability goals essential for ambitious programs like Artemis lunar missions and global Starlink coverage.
As SpaceX continues its aggressive test cadence, Flight 13 exemplifies how targeted engineering responses to real-flight anomalies accelerate progress toward fully operational, high-cadence launches. Success here could mark another milestone in the Starship program for SpaceX.
Tesla received a price target upgrade just on the heels of what was a crazy successful quarter for its automotive business, as the company reported a delivery beat of over 15 percent for Q2.
Jefferies analysts are upping Tesla’s price target (NASDAQ: TSLA) to $400 from $375, while maintaining their “Hold” rating on shares, and the strong automotive deliveries from Q2 is a big reason. However, there are some other catalysts that Jefferies believes position Tesla for a strong position in the second half of the year.
Strong Deliveries
Tesla reported 480,000 deliveries for Q2, while Wall Street was between 395,000 and 405,000, as an overall consensus. It was an incredibly strong quarter from a delivery perspective, and Tesla sold well more than it produced during the three months.
Tesla crushes Wall Street expectations, beats delivery estimates by over 15 percent
While vehicle deliveries are not necessarily looked at in the light that they used to be, Tesla still maintains a lot of advantages for keeping deliveries strong. With the loss of the $7,500 EV Tax Credit last year, Tesla still maintains a strong demand case for its EVs.
Robotaxi Performance
Tesla has been operating Robotaxi for over a year now, as it launched in Austin in mid-2025. That program has expanded to Houston and Dallas, the San Francisco Bay Area, and, most recently, Miami, Florida, the suite’s first appearance in the Sunshine State.
While the Robotaxi suite is still in its early phases and Tesla is working through things like fleet size and wait times, the company has been able to undercut the pricing of its competitors and has a great safety record.
Merger Speculation with Tesla and SpaceX
This is perhaps the biggest topic that many are speaking about with Tesla and SpaceX, and it is the one thing that seems to be on the mind of every investor.
Jefferies warns that growing talk of a Tesla-SpaceX merger could cause Tesla stock to trade more like a SpaceX proxy, which may disconnect it from underlying automotive fundamentals. SpaceX has a lot going for it, especially its compute deals that have been widely publicized as of late.
Profitability in New Projects Could Take Some Time
Tesla has a few long-term ventures in the pipeline, most notably the Optimus project and Robotaxi, which is launched but will take several years to expand to a meaningful level that resonates with everyday people.
This is something that investors need to be careful of. Tesla’s projects could take some time to round out, so Jefferies advises that these may carry initial losses, rather than immediate profit. Seasoned Tesla investors have echoed something like this for a long time; they knew going in it would not be an open-and-shut strategy. It was going to take time.
These new projects are no different.
Tesla weirdly confirms Cybercab employee rides, a huge milestone
SpaceX comes with a slew of changes for Starship Flight 13
