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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.
News
Tesla receives European Ecolabel (EMAS) seal for Giga Berlin-Brandenburg
The EMAS seal highlights Tesla’s existing environmental measures in the facility.
Tesla has been awarded the European Ecolabel (EMAS) seal for Gigafactory Berlin-Brandenburg.
The EMAS seal highlights Tesla’s existing environmental measures in the facility, such as extensive reforestation efforts and reduced water usage. It also emphasizes Tesla’s commitment to improve its environmental initiatives.
Giga Berlin’s environmental initiatives
The EMAS (Eco-Management and Audit Scheme) seal is a long-term environmental management system that focuses on compliance with regulations and improving environmental performance, as noted in a Tagesspiegel report.
Plant manager André Thierig noted that Tesla has already planted over 2 million trees to replace the trees that have been felled to make way for Giga Berlin. Tesla is also targeting an additional 5 to 15 MW peak solar capacity this year to make the plant more sustainable. “We will continue to promote photovoltaics in the future,” he said.
Giga Berlin’s consumption and energy use
In 2024, Giga Berlin consumed about 419,503 MWh of energy, with electricity accounting for more than half, followed by natural gas. The facility is looking to lower natural gas use by redirecting the use of process heating water via waste heat. Water consumption was listed at 2.16 cubic meters per vehicle, significantly below the industry average of 3.5.
This year, Tesla Giga Berlin is looking to recycle 90% of the Model Y plant’s process wastewater. Around 11,000 employees currently work at Giga Berlin, which produces 5,000 vehicles per week or roughly 250,000 units annually.
Certification welcomed but not without criticism
The EMAS program requires companies to disclose resource use, emissions, and improvement plans. Over 40 companies in Brandenburg have EMAS certification.
Brandenburg’s Environment Minister Minister Hanka Mittelstädt (SPD) described Tesla as a role model for the region. “Everything is public, and that also creates a certain amount of trust,” she said, noting that Tesla is a “beacon” in the industry.
Monique Zweig, Managing Director of the East Brandenburg Chamber of Industry and Commerce (IHK), shared her optimism in a comment to rbb24. “At Tesla, you can see that climate goals go hand in hand with industry,” Zweig stated.
Unsurprisingly, local activists expressed skepticism. The Association for Nature and Landscape in Brandenburg, which is against Tesla, questioned whether the certification could be used as “greenwashing.”
The group also alleged that the certificate could pave the way for weaker oversight for the EV maker. “The seal is ‘greenwashing’ to portray the company as more environmentally friendly,” spokesperson Steffen Schorcht noted.
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I traded my ICE vehicle for a Tesla Model Y: here’s how it went
After working at Teslarati for six years and covering the EV space nearly every single day (I recently published my 5,000th article on here), I figured it was time to make a switch.
I recently decided, after a variety of things, that I was going to trade in my internal combustion engine (ICE) vehicle for a new Tesla Model Y. It was a long time coming.
After working at Teslarati for six years and covering the EV space nearly every single day (I recently published my 5,000th article on here), I figured it was time to make a switch. Over the past few years, there have been days when I would have been better off with an EV, but my Summer and Winter activities, as well as the price, kept me from making the switch.
Recently, I decided that it was time. My 2021 Ford Bronco Sport had been experiencing a number of issues, none major, but numerous sensor replacements. It was an affordable and fun car, but after fixing the Tire Pressure Monitoring System in the front right tire, an EVAP switch valve in the motor two months ago, and some other things, the Bronco became more of a chore (and a drain on my wallet) than anything.
With the timing of the $7,500 tax credit expiring and a substantial amount of positive equity in my Bronco, I knew it was time. My experience was excellent, but I would like to share some insights with our readers about the entire process, which may also help you make the jump. Others were more of a one-time thing, as they were things customers would only deal with as the tax credit went away.
My Decision
I knew I was going to get a Tesla, and my inability to enjoy a good sedan steered me to a Model Y (no hate toward the Model 3, it’s just not for me). I knew with the weather in Pennsylvania, all-wheel drive was a need, and the price difference between the rear-wheel-drive and AWD configurations of the Y made it a no-brainer.
Plus, I really would like to get this thing out on the beach, something I’ve done every Summer since buying the Bronco with my Fiancè.
🚨 COME WITH ME TO TRADE MY ICE VEHICLE FOR A NEW TESLA MODEL Y 🧵 https://t.co/tqNPOK94rF
— TESLARATI (@Teslarati) August 30, 2025
I actually ordered this car back in June, but ended up canceling the reservation to wait until the end of Summer. I ended up ordering the car I took delivery of on Saturday back on my birthday on August 16.
I was looking for Diamond Black with White Interior, and it was available in Pittsburgh for delivery. However, I really love the team at Tesla Mechanicsburg, so I opted to do a Black on Black Model Y that was a Fremont build, so I could pick it up from the guys up there. The interior color was not a dealbreaker for me. I just wanted to take delivery soon.
I ordered from inventory, which is not something that is possible now. There is no new Model Y inventory within 200 miles of me, a good sign for Tesla but a bad sign if you’re looking to buy something before the quarter ends. Luckily, the IRS is allowing people to enter an agreement for a car, so you could technically build the car of your choice, put a down payment on it, and take delivery after the September 30 cutoff.
Tesla Delivery Day
My appointment was at 12 p.m. and I arrived about ten minutes before. The team greeted me quickly, and I was able to walk right up and see my car with my name on it. It was pretty incredible and a feeling I have not felt in a long time. I’ll be honest, when I bought the Bronco, I never thought I’d own one. When I got one, it felt pretty surreal.
I felt that way yesterday. It was really cool to finally buy a car that I’d only dreamed of owning. It’s not the only car I dream of owning in my lifetime, but it is one I knew I wanted right now. Now that I was showing up to buy it, it really felt surreal.
The process was really fast and efficient, and I could have been in and out in ten minutes if I wanted to. However, I hung around and talked to the guys there; they discussed some good accessories I should consider and suggested some tint.
I was on my way.
My First Drive and What to Expect
I stopped by my Fiancè’s work, showed her the new ride, brought her some lunch, and headed home to my pup. So far, I’ve driven about 60 miles, with most of it being done manually and about 10 miles using Full Self-Driving. I’ve enjoyed driving it myself so much as of right now, but I know FSD will come in handy plenty in the coming months.
My brand new ride! Thank you @tesla @elonmusk for building one badass car
— Joey Klender (@KlenderJoey) August 30, 2025
In the future, I plan to explore a wide range of topics as an owner. I do not currently have home charging, which is something that many people believe is a dealbreaker for owning an EV. I have two Superchargers very close to my place, so I’m not too concerned about it.
I have been in touch with my leasing office about installing a charger or chargers for the past few months, which seems like it could happen early next year.
So far, I’m really happy with how everything has worked out.
News
Tesla Model Y Performance gets positive review from Swedish auto outlet
The refreshed Model Y Performance model receives unique bumpers, red brake calipers, new wheels, and a carbon fiber spoiler.
It appears that Tesla has created something special with the new Model Y Performance. The vehicle, which was released earlier late August, has started receiving rave reviews, some of it even from publications that tend to be critical of the EV maker and CEO Elon Musk.
Model Y Performance impressions
Swedish automotive outlet CarUp.se has given the updated Tesla Model Y Performance high marks, highlighting its redesigned sport seats as a standout improvement. Tesla implemented a number of key improvements to the Model Y Performance, such as its redesigned sports seats, which now feature powered thigh extensions like those found in the Model Y L from China.
To summarize, its review, the publication noted that “In addition to making you sit like a king, (the Model Y Performance) is also extremely fast at red lights.” The publication highlighted that “the exterior of the Tesla quickly reveals that it is a Tesla Performance model and there is no doubt that it is a really good-looking electric car.” This is quite impressive considering that the previous-generation Model Y Performance looked quite tame compared to the Model S and X Plaid and the Model 3 Performance.
Tweaks and improvements
The refreshed Model Y Performance model receives unique bumpers, red brake calipers, new wheels, and a carbon fiber spoiler, which together give the crossover a more athletic appearance. Performance badging and projection lighting further distinguish it from other Model Y variants. Inside, the upgraded front sport seats deliver noticeably improved support compared to the standard version, enhancing the vehicle’s balance of comfort and sportiness.
The new Model Y Performance deliver 460 horsepower and a top speed of 250 km/h, while consumption is listed at 16.2 kWh/100 km and range at 580 km WLTP. The crossover also benefits from adaptive suspension with preset damping modes. Manufactured at Gigafactory Berlin-Brandenburg, the Model Y Performance is currently available in Europe and the Middle East, with deliveries expected to start in the next 1-2 months.
Tesla receives European Ecolabel (EMAS) seal for Giga Berlin-Brandenburg
I traded my ICE vehicle for a Tesla Model Y: here’s how it went
Tesla Model Y Performance gets positive review from Swedish auto outlet
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