News
Elon Musk’s Boring Company announces tunnel site tours for LA County students
As the Boring Company prepares to break ground for its Chicago-O’Hare high-speed transport project, the Elon Musk-founded startup announced that it would be offering tours of its tunnel site in Hawthorne, CA, to students in LA County. The tours, which could accommodate up to 30 students at a time, could be booked by contacting the Boring Company through email.
The Boring Company’s announcement of the tunnel tours was posted on the company’s official Twitter page on Tuesday. The tunneling startup noted that tours could be booked by interested faculty, or students with a faculty sponsor.
We are hosting student tours of the Hawthorne tunnel site for schools in LA County! Each tour can accommodate up to 30 students. Interested faculty (or students with a faculty sponsor!) can reach out to studenttours@boringcompany.com
— The Boring Company (@boringcompany) August 14, 2018
Offering tours for students is a clever way for the Boring Company to introduce its underground transportation concept to a new generation of commuters. The Boring Company’s high-speed tunnels, after all, have been met with reservations from parties not comfortable with the startup’s ideas. Such reservations became prevalent back in January, when the Boring Company’s representatives presented the tunneling startup’s plans to members of the Culver City local government. Some officials, such as city council member Meghan Sahli-Wells, noted during the presentation that while the company’s tunnels were compelling, the idea was “half-baked from a public perspective.”
The Boring Company’s 2.7-mile Hawthorne project has been progressing well over the past few months. Back in May, Elon Musk posted an update on his personal Instagram page announcing that the test tunnel was nearly complete, and that the project was just pending final regulatory approvals. As soon as these are complete, Musk stated that the Boring Company would start offering “free demo rides” to the public. The tunneling startup showed more signs that the Hawthorne tunnel was nearing completion last month as well, at one point showcasing a section of the tunnel fitted with multicolored lighting.
The 2.7-mile Hawthorne tunnel is a portion of the company’s 6.5-mile proof-of-concept tunnel for the LA area, which is planned to run from northeast Westchester to Brentwood, one of the most traffic-congested sections in West Los Angeles. Ultimately, the Boring Company appears to be setting the stage for its proof-of-concept tunnel, as evidenced by a recent purchase of land in West LA, which would likely become a Loop station in the future. Loop stations are small landing zones and exits where passengers can access the Boring Company’s underground tunnel system.
-
Traveling through the Boring Company’s tunnels would be done through the use of electric-powered pods that can hold up to 16 passengers at a time. The all-electric pods are set to be manufactured by Tesla, and are capable of reaching speeds of up to 150 mph, thanks to a design that uses eight wheels fitted on the sides of the vehicle. According to the Boring Company, the Loop system, at least in its initial run, would prioritize commuters who do not have their own vehicles.
The Boring Company might be a tunneling startup seemingly founded by Elon Musk on a whim, but the company has grown significantly since it was founded back in December 2016. Earlier this year, an SEC filing revealed that the Boring Company raised $113 million in a funding round, $100 million of which was invested by Musk himself. After winning the bid for the estimated ~$1 billion downtown Chicago-O’Hare project, Berenberg analyst Alexander Haissl also noted that the tunneling startup could be worth as much as $16 billion in the future.
SpaceX’s massive investment in AI will make it a big winner, Argus Research said after the company’s successful earnings call last week.
The firm also upgraded shares to a Buy from Hold and set a $160 price target.
SpaceX (NASDAQ: SPCX) is currently recovering from its heavy AI infrastructure investments, as it spent nearly $16 billion in Q2 alone. The company did this primarily by monetizing high-demand GPU compute capacity at a much faster pace than traditional data center economics would suggest.
Company CFO Bret Johnsen said that SpaceX would be able to pay back anything on new deployments within a year.
There are plenty of ways the company can do this:
Leasing excess compute capacity through contracts
SpaceX has already built Colossus and Colossus II, largely for its own model training. However, much of that capacity is already rented out to third parties. It already has major deals with Anthropic, Google, and Reflection AI. These partnerships are adding billions per month to SpaceX’s spreadsheet.
-
High utilization driven by industry-wide scarcity
The demand for advanced AI training and inference capacity continues to exceed what is available for use. SpaceX can fill new racks quickly after they come online, so the capital deployed converts into revenue with minimal idle time.
Additionally, management and outside observers have described the new compute capital as behaving more like a cost-of-goods-sold than traditional multi-year capex, especially because of this rapid monetization pattern.
Capacity has already scaled from ~0.4 GW a year to 1.4 GW annually by the end of Q2. There are targets of more than 2 GW by year-end.
High incremental margins on the rental business once capacity is online
GPU cloud providers often operate at strong gross margins. SpaceX can monetize capacity that was already partially built or can be added efficiently. This means that incremental EBITDA margins on the rental revenue are usually high. This accelerates cash recovery relative to the gross capital outlay.
Parallel monetization of its own AI software and applications
Beyond pure infrastructure rental, SpaceX also generates revenue from Grok through subscriptions and usage, from X through ads, data, and other related services, enterprise APIs, and the planned integration of the Cursor coding tools acquisition.
These application layers ride on the same compute infrastructure and provide additional high-margin streams that could offset build-out costs. AI-segment revenue overall rose sharply to about $2.6 billion in Q2, according to Motley Fool. This was driven primarily by the infrastructure contracts, but the software side is also partially responsible.
Efficient, large-scale deployment and vertical integration advantages
SpaceX has emphasized the rapid construction of power and cooling infrastructure and favorable cost-per-megawatt economics relative to industry benchmarks in some disclosures.
-
Combined with its ability to scale capacity aggressively and the fact that many contracts start generating revenue within months of capacity coming online, the effective payback compresses dramatically compared with more conventional multi-year data-center projects.
SpaceX’s dominant near-term recovery path will turn the AI clusters into a hyperscale-style compute rental business for other leading AI companies while still using a portion for internal models.
Tesla headlights have caused a recall of over 20,000 of the company’s two most popular vehicles, the Model 3 and Model Y, due to the low-beam bulb exceeding the maximum allowed intensity according to federal standards.
Tesla initiated the recall with the National Highway Traffic Safety Administration (NHTSA) this morning, stating that the low-beam output “exceeds the maximum allowed intensity in the outer upper-right and outer upper-left areas of the 10U and 90U zone, as prescribed in FMVSS No. 108.”
Tesla sourced the impacted headlights from Marelli Automotive Lighting, a Mexico-based company. The recall impacts 2020-2023 Model Y vehicles and 2017-2023 Model 3 vehicles. It is estimated that every VIN in this recall is impacted by the defect.
🚨 Tesla is recalling 20,349 2020-23 Model Y vehicles and 2017-23 Model 3 vehicles due to an excessively bright headlamp low beam.
Currently, there is no remedy plan in place, as it is still being developed. pic.twitter.com/y34cIO2U0B
— TESLARATI (@Teslarati) August 11, 2026
Typically, Tesla would remedy recalls of this nature through an Over-the-Air software update, which has been a major focus of criticism by the company and its supporters because the NHTSA still refers to it as a “recall,” even though it requires no action by the vehicle owner. The fix is shipped over the internet and downloaded to the car.
-
However, there appears to be a potentially different solution for this problem. Tesla has not developed a remedy for this issue, so it could potentially be on the way. The big issue appears to be the fact that these recalled lamps are out of production, and this is an old body style for both vehicles. The headlights and front-end designs are completely different.
Tesla switched to another supplier when the affected headlight design was discontinued. It plans to begin notifying owners of their remedy options by September 15.
Tesla filed a petition protesting the recall to fix the vehicles’ headlight issue, but the NHTSA denied it. Now, Tesla will come up with a solution to fix it.
Elon Musk
Another Tesla SpaceX merger prediction by ARK Invest has Elon Musk talking
Elon Musk again denies a Tesla China split as new SpaceX merger speculation resurfaces quickly.
Elon Musk restated that Tesla has no plans to separate its China business from the rest of the company, responding to a new round of merger speculation from ARK Invest.
On the firm’s “Brainstorm” podcast, Cathie Wood’s team, including chief futurist Brett Winton and research director Nick Grous, argued a Tesla and SpaceX combination remains likely, with an announcement possible before the end of the year even if the deal itself would not close that quickly. Winton called Tesla’s Shanghai operations a “small ish wrinkle” for a merger rather than a real obstacle, since SpaceX’s national security work with the U.S. government sits uneasily next to Tesla’s manufacturing base in China.
Musk pushed back on the framing directly. “China is awesome. I strongly encourage people to visit,” he wrote on X. He also repeated language he first used in late July, when the Wall Street Journal reported that Tesla executives had been told to prepare for a possible spinoff, sale, or closure of the China business ahead of a SpaceX tie up. Musk called that report “absurdly fake news” at the time, adding that a separation had “never even come up in a discussion ever,” a line he echoed again this week.
The repeated denial has not settled the underlying question, because Shanghai’s role in Tesla’s business is exactly what makes a merger complicated. Gigafactory Shanghai still ships more than half of Tesla’s global deliveries and functions as the company’s main export hub for Europe and Asia. Teslarati previously reported on Musk’s initial denial, and the merger conversation itself has been building since SpaceX’s IPO gave it public shares to use as acquisition currency.
Wedbush’s Dan Ives has pegged the odds of a Tesla SpaceX merger at 80 to 90 percent by early 2027, and ARK’s prediction of a year end announcement adds another data point to that timeline, even as Musk keeps rejecting the specific mechanics reporters have described. Neither position rules out the other. Musk can deny a China spinoff was ever discussed while analysts still expect some form of combination to move forward, since ARK and Ives are both describing convergence at the corporate level, not necessarily the internal restructuring the Journal described in July.
For now, Tesla’s China business remains intact, and Musk’s comments this week make clear he has no interest in publicly walking that position back, no matter how often the merger question resurfaces.
-
SpaceX AI investment gamble will make it a big winner, firm says
Tesla headlights cause recall of over 20,000 Model 3 and Model Y
