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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.
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Tesla Full Self-Driving v14.2.2.5 might be the most confusing release ever
With each Full Self-Driving release, I am realistic. I know some things are going to get better, and I know some things will regress slightly. However, these instances of improvements are relatively mild, as are the regressions. Yet, this version has shown me that it contains extremes of both.
Tesla Full Self-Driving v14.2.2.5 hit my car back on Valentine’s Day, February 14, and since I’ve had it, it has become, in my opinion, the most confusing release I’ve ever had.
With each Full Self-Driving release, I am realistic. I know some things are going to get better, and I know some things will regress slightly. However, these instances of improvements are relatively mild, as are the regressions. Yet, this version has shown me that it contains extremes of both.
It has been about three weeks of driving on v14.2.2.5; I’ve used it for nearly every mile traveled since it hit my car. I’ve taken short trips of 10 minutes or less, I’ve taken medium trips of an hour or less, and I’ve taken longer trips that are over 100 miles per leg and are over two hours of driving time one way.
These are my thoughts on it thus far:
Speed Profiles Are a Mixed Bag
Speed Profiles are something Tesla seems to tinker with quite frequently, and each version tends to show a drastic difference in how each one behaves compared to the previous version.
I do a vast majority of my FSD travel using Standard and Hurry modes, although in bad weather, I will scale it back to Chill, and when it’s a congested city on a weekend or during rush hour, I’ll throw it into Mad Max so it takes what it needs.
Early on, Speed Profiles really felt great. This is one of those really subjective parts of the FSD where someone might think one mode travels too quickly, whereas another person might see the identical performance as too slow or just right.
To me, I would like to see more consistency from release to release on them, but overall, things are pretty good. There are no real complaints on my end, as I had with previous releases.
In a past release, Mad Max traveled under the speed limit quite frequently, and I only had that experience because Hurry was acting the same way. I’ve had no instances of that with v14.2.2.5.
Strange Turn Signal Behavior
This is the first Full Self-Driving version where I’ve had so many weird things happen with the turn signals.
Two things come to mind: Using a turn signal on a sharp turn, and ignoring the navigation while putting the wrong turn signal on. I’ve encountered both things on v14.2.2.5.
On my way to the Supercharger, I take a road that has one semi-sharp right-hand turn with a driveway entrance right at the beginning of the turn.
Only recently, with the introduction of v14.2.2.5, have I had FSD put on the right turn signal when going around this turn. It’s obviously a minor issue, but it still happens, and it’s not standard practice:
How can we get Full Self-Driving to stop these turn signals?
There’s no need to use one here; the straight path is a driveway, not a public road. The right turn signal here is unnecessary pic.twitter.com/7uLDHnqCfv
— TESLARATI (@Teslarati) February 28, 2026
When sharing this on X, I had Tesla fans (the ones who refuse to acknowledge that the company can make mistakes) tell me that it’s a “valid” behavior that would be taught to anyone who has been “professionally trained” to drive.
Apparently, if you complain about this turn signal, you are also claiming you know more than Tesla engineers…okay.
Nobody in their right mind has ever gone around a sharp turn when driving their car and put on a signal when continuing on the same road. You would put a left turn signal on to indicate you were turning into that driveway if that’s what your intention was.
Like I said, it’s a totally minor issue. However, it’s not really needed, and nor is it normal. If I were in the car with someone who was taking a simple turn on a road they were traveling, and they signaled because the turn was sharp, I’d be scratching my head.
I’ve also had three separate instances of the car completely ignoring the navigation and putting on a signal that is opposite to what the routing says. Really quite strange.
Parking Performance is Still Underwhelming
Parking has been a complaint of mine with FSD for a long time, so much so that it is pretty rare that I allow the vehicle to park itself. More often than not, it is because I want to pick a spot that is relatively isolated.
However, in the times I allow it to pull into a spot, it still does some pretty head-scratching things.
Recently, it tried to back into a spot that was ~60% covered in plowed snow. The snow was piled about six feet high in a Target parking lot.
A few days later, it tried backing into a spot where someone failed the universal litmus test of returning their shopping cart. Both choices were baffling and required me to manually move the car to a different portion of the lot.
I used Autopark on both occasions, and it did a great job of getting into the spot. I notice that the parking performance when I manually choose the spot is much better than when the car does the entire parking process, meaning choosing the spot and parking in it.
It’s Doing Things (For Me) It’s Never Done Before
Two things that FSD has never done before, at least for me, are slow down in School Zones and avoid deer. The first is something I usually take over manually, and the second I surprisingly have not had to deal with yet.
I had my Tesla slow down at a school zone yesterday for the first time, traveling at 20 MPH and not 15 MPH as the sign suggested, but at the speed of other cars in the School Zone. This was impressive and the first time I experienced it.
I would like to see this more consistently, and I think School Zones should be one of those areas where, no matter what, FSD will only travel the speed limit.
Last night, FSD v14.2.2.5 recognized a deer in a roadside field and slowed down for it:
🚨 Cruising home on a rainy, foggy evening and my Tesla on Full Self-Driving begins to slow down suddenly
FSD just wanted Mr. Deer to make it home to his deer family ❤️ pic.twitter.com/cAeqVDgXo5
— TESLARATI (@Teslarati) March 4, 2026
Navigation Still SUCKS
Navigation will be a complaint until Tesla proves it can fix it. For now, it’s just terrible.
It still has not figured out how to leave my neighborhood. I give it the opportunity to prove me wrong each time I leave my house, and it just can’t do it.
It always tries to go out of the primary entrance/exit of the neighborhood when the route needs to take me left, even though that exit is a right turn only. I always leave a voice prompt for Tesla about it.
It still picks incredibly baffling routes for simple navigation. It’s the one thing I still really want Tesla to fix.
Investor's Corner
Tesla gets tip of the hat from major Wall Street firm on self-driving prowess
“Tesla is at the forefront of autonomous driving, supported by a camera-only approach that is technically harder but much cheaper than the multi-sensor systems widely used in the industry. This strategy should allow Tesla to scale more profitably compared to Robotaxi competitors, helped by a growing data engine from its existing fleet,” BoA wrote.
Tesla received a tip of the hat from major Wall Street firm Bank of America on Wednesday, as it reinitiated coverage on Tesla shares with a bullish stance that comes with a ‘Buy’ rating and a $460 price target.
In a new note that marks a sharp reversal from its neutral position earlier in 2025, the bank declared Tesla’s Full Self-Driving (FSD) technology the “leading consumer autonomy solution.”
Analysts highlighted Tesla’s camera-only architecture, known as Tesla Vision, as a strategic masterstroke. While technically more challenging than the multi-sensor setups favored by rivals, the vision-based approach is dramatically cheaper to produce and maintain.
This cost edge, combined with Tesla’s rapidly expanding real-world data engine, positions the company to scale robotaxis far more profitably than competitors, BofA argues in the new note:
“Tesla is at the forefront of autonomous driving, supported by a camera-only approach that is technically harder but much cheaper than the multi-sensor systems widely used in the industry. This strategy should allow Tesla to scale more profitably compared to Robotaxi competitors, helped by a growing data engine from its existing fleet.”
The bank now attributes roughly 52% of Tesla’s total valuation to its Robotaxi ambitions. It also flagged meaningful upside from the Optimus humanoid robot program and the fast-growing energy storage business, suggesting the auto segment’s recent headwinds, including expired incentives, are being eclipsed by these higher-margin opportunities.
Tesla’s own data underscores exactly why Wall Street is waking up to FSD’s potential. According to Tesla’s official safety reporting page, the FSD Supervised fleet has now surpassed 8.4 billion cumulative miles driven.
Tesla FSD (Supervised) fleet passes 8.4 billion cumulative miles
That total ballooned from just 6 million miles in 2021 to 80 million in 2022, 670 million in 2023, 2.25 billion in 2024, and a staggering 4.25 billion in 2025 alone. In the first 50 days of 2026, owners added another 1 billion miles — averaging more than 20 million miles per day.
This avalanche of real-world, camera-captured footage, much of it on complex city streets, gives Tesla an unmatched training dataset. Every mile feeds its neural networks, accelerating improvement cycles that lidar-dependent rivals simply cannot match at scale.
Tesla owners themselves will tell you the suite gets better with every release, bringing new features and improvements to its self-driving project.
The $460 target implies roughly 15 percent upside from recent trading levels around $400. While regulatory and safety hurdles remain, BofA’s endorsement signals growing institutional conviction that Tesla’s data advantage is not hype; it’s a tangible moat already delivering billions of miles of proof.
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Tesla to discuss expansion of Samsung AI6 production plans: report
Tesla has reportedly requested an additional 24,000 wafers per month, which would bring total production capacity to around 40,000 wafers if finalized.
Tesla is reportedly discussing an expansion of its next-generation AI chip supply deal with Samsung Electronics.
As per a report from Korean industry outlet The Elec, Tesla purchasing executives are reportedly scheduled to meet Samsung officials this week to negotiate additional production volume for the company’s upcoming AI6 chip.
Industry sources cited in the report stated that Tesla is pushing to increase the production volume of its AI6 chip, which will be manufactured using Samsung’s 2-nanometer process.
Tesla previously signed a long-term foundry agreement with Samsung covering AI6 production through December 31, 2033. The deal was reportedly valued at about 22.8 trillion won (roughly $16–17 billion).
Under the existing agreement, Tesla secured approximately 16,000 wafers per month from the facility. The company has reportedly requested an additional 24,000 wafers per month, which would bring total production capacity to around 40,000 wafers if finalized.
Tesla purchasing executives are expected to discuss detailed supply terms during their visit to Samsung this week.
The AI6 chip is expected to support several Tesla technologies. Industry sources stated that the chip could be used for the company’s Full Self-Driving system, the Optimus humanoid robot, and Tesla’s internal AI data centers.
The report also indicated that AI6 clusters could replace the role previously planned for Tesla’s Dojo AI supercomputer. Instead of a single system, multiple AI6 chips would be combined into server-level clusters.
Tesla’s semiconductor collaboration with Samsung dates back several years. Samsung participated in the design of Tesla’s HW3 (AI3) chip and manufactured it using a 14-nanometer process. The HW4 chip currently used in Tesla vehicles was also produced by Samsung using a 5-nanometer node.
Tesla previously planned to split production of its AI5 chip between Samsung and TSMC. However, the company reportedly chose Samsung as the primary partner for the newer AI6 chip.
Tesla Full Self-Driving v14.2.2.5 might be the most confusing release ever
Tesla gets tip of the hat from major Wall Street firm on self-driving prowess
