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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.
Last week, Tesla sent me the Model Y L for five days to test, assess, and enjoy for journalistic purposes. It’s always a treat when I get any media vehicle, and I’ve had the pleasure of working with Tesla and Ford for hands-on reviews of their products.
This one was exceptionally exciting for a few reasons: first, because it is the car I own, but bigger, so I was really excited to see if that extra space was worth it; and second, because my Fiancée (we’re down to just 18 days ’til she’s officially my wife!!!) and I plan to fill a car up with kids in the near future, so it was really nice to have a trial with a car that would potentially be in our driveway in a few years.
I did a full 10-minute video review of the Model Y L, which I will post at the bottom of this more condensed written version. If you prefer to watch a review, go ahead and skip to the bottom for that.
For those who prefer the writing, I’ll break down the big things about the Model Y L that I noticed, focusing on the big addition/difference that this car has from the Model Y: the third row. Tesla also added small-but-mighty changes to the Y L that I really wish were on my Model Y Premium, so I’ll be sure to mention those as well.
What Makes It Different from the Model Y?
Credit: TESLARATI
The first thing to note is that the interior of this vehicle, from the front row, is generally the same. It truly does feel like you’re in the same exact car with a slightly different seating layout. Of course, Tesla interiors do feel this way, at least with the Model 3 and Model Y, but there are no drastic differences between the Model Y L and the Model Y from the front row.
This should be expected, so definitely do not go into it thinking you’ll know you’re in a different car. It is a very similar experience to the Model Y.
Tesla Model Y L: new features that make it better than the standard Model Y
The true differences come from the back two rows. The only true difference from the front is the addition of a new Dynamics Feature that falls under the “Ride & Handling Priority” menu, which now allows you to adjust the suspension damping to prioritize a comfortable ride for everyone or one that is noticeably better from the rear two rows. In terms of ride comfort, the front rows definitely feel the impact of this; it is a noticeable difference and much stiffer in the driver’s seat with this setting turned to prioritize the rear occupants.
What changes from an engineering standpoint between these two settings @elonmusk @larsmoravy?
There is a very noticeable difference in comfort from the driver’s seat between these two settings https://t.co/62bdZJOr26 pic.twitter.com/KFP12jleHj
— TESLARATI (@Teslarati) September 14, 2026
There are also a series of small improvements, like the rear taillight is now up toward the spoiler, which must be a strategy for making the rear glass actually useful in the Y L compared to the regular Y.
Pretty crazy how much different the rear windshield is compared to the Model Y
Not even close in size https://t.co/62bdZJOr26 pic.twitter.com/IjNbWwMBcS
— TESLARATI (@Teslarati) September 14, 2026
Some other small changes are the addition of small magnets for the sub-trunk lid, which is a great addition and something I’d like to do in my Model Y; it sounds to me as if the Model Y L liftgate motor is less whiny than the one in my Model Y; and all three rows of climate are controllable from the front touchscreen.
I talk about them in a short video here:
🚨 Five things you might not know about the new Tesla Model Y L! pic.twitter.com/I42VTQoS5R
— TESLARATI (@Teslarati) September 14, 2026
Second and Third-Row Legroom
The major feature of the Model Y L is the third row, and Tesla did a great job of making it spacious enough for more than just your nine-year-old nephew. It actually does have a suitable amount of legroom for adults, but it is dependent on how tall the people are in the first- and second-row seats in front of you.
This is where I caught some slack from those who have also sat in the Model Y L and believe there is enough room for anyone of any height. I certainly believe that those who are not complainers could sit back there for a multiple-hour drive and not complain. I would enjoy sitting in the back row because I think it is comfortable; the vents for air are perfectly positioned on the C pillars for maximum comfort, and I found that there was enough room back there for me. I’m 5′ 8″, so I’m definitely not tall. However, I found that I had more than enough legroom:
Credit: TESLARATI
The picture above is where my Fiancèe could sit comfortably in the second row in front of me, and she is 5′ 1″. There is a lot of give and take with these seats, and I believe most groups could make it work. She was comfortable in the second-row seat in front in this position, and as you can see, I have plenty of room. She could easily come back a few inches, and I’d still be comfortable.
This is where I think people would truly benefit from seeing what the space in this car looks like for themselves. To me, I found it more than suitable for a group of friends to go out in and for everyone to be comfortable. There might be some strategy to it if you have some taller friends, but it’s definitely doable.
Overall, the space in the Y L in the back two rows is great: the second-row Captain’s Chairs have mechanical armrests that go down automatically when you exit the car, and come back up on their own when you return. The second row also has ventilated seats; you’ll only have the heat option in the third row.
Credit: TESLARATI
Overall Thoughts
It was really a great five days with the Model Y L, and I do believe that this is a great car for families. I do not believe it is the perfect one. It is really an excellent option for those who can make do with what is truly a compact crossover stretched out to make way for a third row. However, I think that more families simply want something large, like Tahoe or Expedition large, and the Model Y L does not necessarily answer that call.
I think it is more than reasonable for a family of six to have this car and make it work. It is safe, it has Full Self-Driving, which I believe will be a non-negotiable for me moving forward in car buying; and it is relatively affordable, with the Launch Edition coming in at a price of $61,990 before options. Not going to a gas station for the past year has really been a lifesaver for me, especially with home charging saving us so much money.
Tesla will need to have an answer for the families that want something like a Cyber SUV or simply something that qualifies as a full-size SUV. I just truly do not think that every family will see this as enough space, and I think that’s understandable. If someone were to want to take an overnight trip with their four kids, I don’t know if it would be the easiest cargo situation because without that third row folded down, that trunk space is confined to just 14.8 cubic feet. I couldn’t take four kids and a wife to Ocean City for a week with using only the trunk space. We’d likely have to get creative, and I think that’s what many families want to avoid.
For comparison’s sake, a Tahoe offers 25.5 cubic feet of trunk space, which is still tight, but much more manageable and forgiving.
With all that being said, the Model Y L is still a great option and I’d be willing to see past the cargo issues because of FSD and the safety of Tesla vehicles overall. For our full review, check out the video below:
Elon Musk
Why automakers keep turning down Elon Musk’s Tesla Full Self-Driving offer
Elon Musk confirms no automaker has ever accepted Tesla’s offer to license Full Self-Driving software.
Elon Musk gave a brief answer on X Monday that confirmed that Tesla’s standing offer to license Full Self-Driving to other automakers still has zero takers. Sawyer Merritt wrote that “Tesla has for years openly invited other automakers to license FSD. None of them have accepted,” responding to a prediction from Boom Supersonic founder Blake Scholl that Tesla would eventually open FSD the way it opened its Supercharger network to rival brands. Musk’s reply to Merritt was one word: “Exactly.”
It is not the first time Musk has made this point. He said something similar in November, when he called legacy automakers reluctance to adopt FSD “crazy,” and Tesla has floated the offer publicly since at least 2021. Scholl’s prediction touches on something real. Once NACS became the de facto charging standard, adoption from Ford, GM, Rivian and others followed within about a year. FSD licensing was supposed to work the same way once Tesla built enough of a lead that switching made sense for everyone.
Tesla has for years openly invited other automakers to license FSD. None of them have accepted. https://t.co/kgz4idpoUM
— Sawyer Merritt (@SawyerMerritt) September 22, 2026
The case for licensing now is stronger than it was two years ago. Waymo and Zoox are logging hundreds of thousands of unsupervised autonomous miles, along with Tesla’s own Robotaxi fleet. Every automaker still selling driver assist systems that lag FSD has given the robotaxi conversation to Tesla, Waymo and Zoox by default. Licensing FSD would let a GM or a Ford compete on the same field without spending a decade and billions of dollars building a stack from scratch, the same argument Tesla made when it opened the Supercharger network to bring more EVs onto its chargers.
But FSD is not a connector standard. As one reply to Musk’s post pointed out, licensing FSD is not a software license the way NACS was a plug spec. It requires adopting Tesla’s eight camera layout and its onboard compute architecture, meaning a licensee’s cars would effectively become Tesla hardware wearing someone else’s badge. That is the visible obstacle. The less visible one is data. A licensed FSD stack would report back the same telemetry Tesla collects from its own fleet, giving Tesla a continuous read on how a competitor’s cars are actually driven, where they struggle, and how often drivers intervene. For an automaker trying to build its own autonomy program, or simply trying to keep its build quality and safety record private, handing Tesla that visibility could be a bigger cost than the hardware bill. It is the reason the Supercharger comparison only goes so far. Opening a charging plug cost Tesla very little. Opening FSD would cost a rival something it cannot get back.
Tesla has reopened reservations for its long-delayed next-generation Roadster, asking buyers for a $50,000 deposit just days before an October 1 reveal event in Waco, Texas. The move revives a reservation process first launched in 2017 and later paused when Tesla pulled pricing from its website in 2021.
The reservation page requires an immediate $5,000 credit-card payment, described as fully refundable, followed by a $45,000 wire transfer due within 10 days, which is identical to what was expected previously. Reservations are not considered final until the wire clears.
The structure matches the 2017 terms Tesla used when it first collected deposits after unveiling a prototype. Tesla has not published a confirmed retail price or production start date on the order page.
Go buy a Roadster pic.twitter.com/n7rhouAmIS
— TESLARATI (@Teslarati) September 21, 2026
The October 1 event is scheduled in Waco, about 90 minutes north of Tesla’s Austin headquarters and near SpaceX’s McGregor rocket test site. Tesla sent invitations to existing reservation holders and posted a “Go for launch” teaser on September 12.
The Federal Aviation Administration (FAA) established a temporary flight restriction over the McGregor area from September 18 through October 2, consistent with plans for a demonstration involving SpaceX-designed cold-gas thrusters. Elon Musk has previously described the optional package as enabling extreme acceleration or brief hovering. Tesla has said the event will include pricing, specifications, and production targets.
The second-generation Roadster was first shown in November 2017 during Tesla’s Semi launch. Musk promised production in 2020, with claimed performance of 0-60 mph in 1.9 seconds, more than 250 mph top speed, and roughly 620 miles of range.
Those targets have slipped repeatedly.
Tesla later pointed to 2022, 2023, 2024, and 2025-2026 before indicating production would not begin until 2027 or 2028 at Gigafactory Texas. Design work has continued, with reports of a sharper, Cybertruck-influenced look replacing the original curvy prototype.
Original reservation holders who paid $50,000 in 2017, or $250,000 for the Founders Series, have waited nearly nine years without a production car. Some high-profile customers canceled. Tesla’s decision to reopen orders now, after previously shutting them down, tests whether new buyers will commit substantial funds before seeing a finalized production vehicle. The October 1 event is intended to answer remaining questions about what those buyers will actually receive and when.
Did Tesla make the perfect car for families? Tesla Model Y L Full Review
Why automakers keep turning down Elon Musk’s Tesla Full Self-Driving offer
