News
Why The Boring Company’s $10 million dollars per mile price tag is a game changer
With The Boring Company, Elon Musk hopes to overcome the pitfalls that drive up the costs of underground rail transport construction using good old-fashioned innovation with a dash of Silicon Valley startup dust (dirt?). Currently, most U.S. local and state governments (i.e., tax payers) hand over an average of $200-$500 million dollars per mile to construct a subway system, with hundreds of millions more per mile a common occurrence and even a $1 billion dollars per mile price tag having happened a few times already. The reasons for such expense seems to be multi-faceted and stubborn: regulations, unions, and project management. So, when the Tesla CEO and Boring Company founder cited $10 million dollars as the final price of their mile-long demonstration tunnel, including internal infrastructure, lighting, comms/video, safety systems, ventilation, and tracks, he seemed to be threatening to completely upend yet another industry, this one having been at the core of transportation for nearly 200 years.
“I like trains, by the way. I really like trains a lot,” Musk assured his press audience at the company’s recent demonstration tunnel opening event. The Boring Company (TBC) began as a Twitter discussion wherein the tech mogul was venting about “soul-destroying” traffic in Los Angeles. A concept animation followed soon after (as well as hats and not-a-flamethrowers), imagining a transportation system where cars would be shuttled around at high speeds underground on electric skates. Ideas flowed, tunneling began, and the result of all those efforts went on display December 18, 2018, demo rides included. A rideable 1.14 mile tunnel had been constructed from Crenshaw Boulevard across from the Hawthorne, California headquarters of SpaceX, Musk’s private rocket company, to the 120th Street/Prairie Avenue crossroad of Hawthorne.
Around this time last year, Brian Rosenthal of the New York Times exposed several astonishing factors that added up to a $3.5 billion dollars per mile cost to construct a 3.5 mile tunnel to connect Grand Central Terminal to the Long Island Rail Road in New York City, aka the “East Side Access”. An infamous “first”, this price tag is 7 times more than the average of anywhere else in the world. A combination of trade union, construction company, and consulting firm practices, including significant staff redundancy, bred an environment ripe for cost pile-ups, and both incompetence and the lack of oversight within New York’s Metropolitan Transportation Authority (MTA) added significantly to the issue. While the specific amount of money spent made the system’s cost unique in the world, the general underlying issues were not uncommon.

New York may be an exception to the already high-cost of rail construction rule, but there’s the rub: It’s already incredibly expensive. As documented in numerous articles by Alon Levy, an independent journalist whose 2011 blog post on the topic inspired the research that eventually led to the Times piece, $100-$500 million dollars per mile is a typical cost for building railed transporation worldwide. “These are crazy numbers,” Musk exclaimed at the tunnel opening event after summarizing the multiple billions of dollars short tunneling projects cost to complete in L.A. and New York. If the building cost wasn’t enough sticker shock, it gets worse: The daily operating costs of rail systems in the U.S. exceed the amount earned.
Another metric that is used to estimate the true cost of rail construction is cost per rider. After the time and money is spent building a public rail system, it needs to be staffed and repaired, expenses which are difficult to match with revenue without a large number of riders. As cited by Alon Levy in an article Elon Musk tweeted recently, New York’s Second Avenue Subway will cost $25,000 per rider to complete 200,000 trips per day. In Los Angeles, the Purple Line will cost $45,000 per rider for 150,000 trips per day as will Boston’s Green Line Extension for 52,000 trips. Looking at rider fares, New York loses a bit less than $1 per ride taken and L.A. loses over $2 per ride.
So, how will The Boring Company “do” underground transportation system building better than the traditional, money-heavy methods? To put it simply: Be efficient.
Building a better mouse snail trap
They’ve designed their tunneling machines to bore faster and more efficiently. While the first generation machine is conventional and named Godot after the Samuel Backett play, Waiting for Godot due to the length of time it took to understand the machine’s functionality and assemble it, two other improved generations will be part of the Boring family.
The second generation machine, named “Line-Storm” after a Robert Frost love poem with the same phrase in its title that’s about overcoming hardships, is a conventional boring machine that has been highly modified. It uses a redesigned cutting head that takes in significantly more dirt and is 2 times faster than Godot.
The third generation machine, named “Prufrock”, will be a ground-up, fully designed TBC machine that’s 15 times better than the next best boring system, and that means 15 times faster than the next best machine out there, period.
Improved construction practices and project management
During construction, TBC reinforced tunnel segments as they were dug, those reinforcements being created on-site out of materials comprising 70% of the dirt dug and the remaining 30% primarily cement. This recycled material, as-you-go system enabled quick construction with cost efficiency, the demo tunnel taking 2 years almost to the day from Musk’s initial Tweet that inspired the undertaking.
Function-focused engineering
TBC’s tunnels are smaller than the typical underground rail system because they’re designed for specific types of vehicles that are smaller than traditional transports (autonomous electrics) and don’t require extra space for maintenance. This in itself reduces costs by 3-4 times.
Although The Boring Company has the advantage of being the new kid on the block whose founder has a unique background in shaking up traditional systems, there may still be a few hangups that will never quite go away. Anything involving the general public, especially public transit, will have serious bureaucracy involved. To achieve the company’s mile-long demo track feat, it had to face the extreme regulatory environment of Los Angeles. California overall has earthquakes, is a methane zone, and has oil and gas fields, all which add to a long list of rules to be followed for any construction projects to commence. “The amount of paperwork we had to go through to do this was enormous,” Musk said at TBC’s recent event.

Additionally, a lawsuit filed last year by the Brentwood Residents Coalition and the Sunset Coalition objecting to the company’s Sepulveda tunnel eventually led to their abandonment of that leg of the demonstration project. The coalitions primarily alleged that TBC was skirting environmental review requirements by “chopping large projects into smaller pieces that taken individually appear to have no significant environmental impacts”, citing a conceptual map the company released showing its planned Los Angeles tunnel system. Musk hasn’t let these hurdles damage his confidence, however. While speaking with press at TBC’s opening event, he added his own spin to the Broadway mantra (and Frank Sinatra hit, “New York, New York”) about “making it” there : “If you can build a tunnel in L.A., you can build it anywhere.”
As CEO of an innovative electric car company and a commercial rocket company set on sending humans to Mars, Musk is known as an industry disruptor. Even if the cost of boring tunnels for public transportation projects rises somewhat above the $10 million per mile price demonstrated with the LA/Hawthorne tunnel, it will be still be well under the typical costs in the boring industry. It’s obvious already that a potential disruption is underway. “We have people hounding us to invest nonstop…it’s kinda ridiculous how much interest we’ve had in investing in Boring Company,” Musk stated at the tunnel unveiling. Steve Davis, president of the company, added that they receive “greater than 5 and less than 20 requests per week from different municipalities and stakeholders.”
Also in the works for the tunneling newcomers: A transport line connecting downtown Chicago to Chicago O’Hare International Airport. The company won a contract to build a transport system for the city’s fliers in June 2017, and ground breaking is planned for sometime in the next few months. The Boring Company’s calendar still includes plans for an “urban loop system” as well, an underground network of pod-type buses for pedestrians and cyclists connecting numerous points throughout city centers.
Elon Musk
Tesla nears closure of Full Self-Driving purchasing option
The move to bring FSD to this type of purchasing program comes after CEO Elon Musk noted in January that Tesla would move away from the outright purchase option.
Tesla is nearing the closure of its Full Self-Driving outright purchasing option, which will be removed on February 14, meaning Saturday will be the last time it can be bought as a non-subscription.
Tesla is aiming to move its Full Self-Driving suite to a subscription-only platform, a move that will enable people to only pay monthly for the semi-autonomous driving functionality.
The move to bring FSD to this type of purchasing program comes after CEO Elon Musk noted in January that Tesla would move away from the outright purchase option.
It is currently priced at $8,000 for the outright option to use Full Self-Driving, a substantial decrease compared to the $15,000 it was priced at one time. For the monthly subscription, it is just $99 per month, but that price will change, likely increasing as things get more advanced.
Tesla is overhauling its Full Self-Driving subscription for easier access
We say it will likely increase because there is no indication of how Tesla will price FSD. There has been some speculation that Tesla could utilize a tiered system to price FSD, which would potentially allow owners to pick and choose a set of features that would be most ideal for them.
This would potentially introduce an even more affordable option for FSD use, but this is unconfirmed. The reason many say this could be an option for Tesla is the fact that if the price goes up further, the take rate, which is currently around 12 percent at its most recent estimate, could be lower.
Musk needs 10 million active Full Self-Driving subscriptions to unlock one of the tranches of his newest compensation package.
The move to a subscription-only platform has its positives and negatives, and owners have been more than vocal about these since Musk confirmed the move.
Positives
- Lower barrier to entry and higher potential adoption
- Financially better for many users
- Easier transfers and brand loyalty
- Predictable recurring revenue for Tesla
- Access to the latest features
Negatives
- Higher long-term cost for loyal/long-term owners
- No true “ownership” or permanence
- Risk of future price hikes or even deactivation
- Perceived as of less value
- Impact on resale and used market
Overall, there is a split among the Tesla community in terms of what they see as the “right” way to handle this. Tesla is likely to shed more details on what its plans for the subscription-only platform will be, including pricing, in the coming weeks.
Elon Musk
Elon Musk’s Boring Company selected for Universal Orlando tunnel project
The underground transport tunnel is designed to address the persistent gridlock surrounding International Drive.
Elon Musk’s The Boring Company has been selected for a proposed underground transit system connecting Universal Orlando Resort and the newly opened Universal Epic Universe.
The underground transport tunnel is designed to address the persistent gridlock surrounding International Drive.
As noted in a blooloop report, Universal’s Shingle Creek Transit and Utility Community Development District approved a resolution showing its intent to designate The Boring Company as the contractor for the project.
The agreement covers the full scope of the project, from the tunnel’s design, construction, and maintenance. The project has also been described in public documents as a “point-to-point innovative transportation” initiative with a 25-year agreement.
The proposed Boring Company tunnels would directly link Universal’s existing parks with Epic Universe, which sits roughly three miles away from Universal Orlando Resort. Today, buses are the only direct connection between the two destinations.
Project requirements were quite stringent. Bidders were required to demonstrate at least $75 million in bonding capacity, have a minimum of seven years of operational experience, and show prior delivery of a comparable project valued at $25 million or more within the past 15 years. The Boring Company, thanks in no small part to the Vegas Loop, meets these requirements.
The Orlando selection adds to The Boring Company’s growing portfolio of Loop-style systems. In Las Vegas, the Las Vegas Convention Center Loop has transported more than two million passengers in Tesla vehicles through underground tunnels since 2021. The greater Vegas Loop system is also under construction.
For now, residents in the area seem enthusiastic about the upcoming project. In a comment to Fox35, residents noted that the tunnels could improve traffic in the area.
“We are very congested at certain times and certain hours and that would certainly help with people not having to budget their time,” Mary Walters-Clark, a resident, stated. Another resident, Scott Heinz, echoed similar sentiments. “I think it would be a new opportunity to lessen traffic load and good for visitors as well,” he said.
The tunneling startup has started bringing its Loop projects to international locations. It recently signed a memorandum of understanding with Dubai’s Roads and Transport Authority to explore the development of a 17-kilometer underground Loop network beneath Dubai.
Elon Musk
Elon Musk tops Forbes’ list of America’s 250 greatest innovators
The ranking places Musk at the top of modern American innovation.
Elon Musk has been ranked No. 1 on Forbes’ inaugural list of America’s 250 Greatest Innovators. The ranking places Musk at the top of modern American innovation as the publication kicks off a series celebrating the nation’s 250th anniversary.
Forbes described innovation as “the grease in the economic engine” and the force that transforms industries and creates new ones. The publication highlighted that its honorees are not just inventors, but business leaders who successfully bring breakthroughs to market.
Musk, 54, was ranked No. 1 in this year’s list. Forbes noted that he is “the only person in history to have founded (or grown from nearly nothing) five companies, each with multibillion-dollar valuations, each in a different industry.” Those companies include Tesla, SpaceX, Neuralink, xAI, and The Boring Company.
Forbes’ methodology began with nearly 1,000 nominees submitted by its reporters. A panel of judges, including venture capitalist Jim Breyer, journalist Kara Swisher, and strategy expert Rita McGrath, ranked candidates based on creativity, breadth, engagement, disruption, and commercial impact. Artificial intelligence tools, including ChatGPT and Gemini, were also used to assess candidates before editors finalized the rankings.
The publication noted that more than one-third of the list consists of women and people of color, reflecting shifts in innovation and entrepreneurship over time. All individuals listed are also American citizens, though many were born abroad, including Musk himself. Musk was born in Pretoria, South Africa.
Ranked No. 2 is Jeff Bezos, 61, who Forbes credited with upending America’s $7.4 trillion retail industry through Amazon before pioneering cloud computing with Amazon Web Services. The publication highlighted that Bezos now focuses on space exploration through Blue Origin and artificial intelligence manufacturing systems at Prometheus.
At No. 3 is Bill Gates, 70, who helped launch the personal computing revolution and built Microsoft into the dominant force in workplace software. Forbes also highlighted Gates’ reinvention at age 50 as a data-driven philanthropist, including his role in helping eradicate polio from India.