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The Boring Company’s innovations take center stage at Hawthorne test tunnel opening event
Two years ago, Elon Musk founded a tunneling startup aimed at battling what he creatively described as “soul-destroying traffic.” Musk’s idea was simple — traffic congestion can be addressed by using underground tunnels where vehicles can travel at extremely fast speeds on electric skates. Hence, a startup aptly named The Boring Company was born.
Since then, the tunneling company has acquired a high-profile project in Chicago, developed low-cost bricks from tunneling rocks, and completed its first test tunnel. Constructed on the backyard of the SpaceX headquarters, the Boring Company’s Hawthorne test tunnel was unveiled on Tuesday in an opening party, complete with entertainment, fun activities, and a medieval watchtower overlaid with Boring Bricks.
Being smaller in diameter than traditional tunnels, The Boring Company’s projects are more cost-effective and faster to construct. Its 1.14-mile Hawthorne tunnel, for example only cost ~$10 million to build, including internal infrastructure, lighting, comms/video, safety systems, ventilation, and tracks. Conventional tunneling projects, which involve larger tunnels and traditional digging methods, could cost as much as $1 billion per mile.
Elon Musk conducted an information session to members of the press prior to the official start of the unveiling. During the meeting, Musk discussed some updates about the startup’s concepts. For one, Musk noted that The Boring Company had changed its idea of using electric skates to propel cars. Instead of using pre-made electric skates, the company is now using the vehicle as the skate itself.
“There won’t be a skate — no more skate. The vehicle is the skate,” Musk said.
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Tesla Model X fitted with electric skates for transportation through The Boring Company’s Hawthorne test tunnel. (Photo: Tom Cross/Teslarati)
The Hawthorne test tunnel would be utilizing the Loop System, which is designed to accommodate cars and passenger pods. During the Q&A, Musk noted that the Loop is a step towards the eventual creation of Hyperloop, which utilizes pods traveling inside low-pressure tubes at speeds of up to 700 mph. “The loop is a stepping stone toward Hyperloop. Loop is for transport within a city. And Hyperloop is transport between cities,” Musk said.
Apart from referencing Hyperloop transportation, Musk further discussed other possible uses for The Boring Company’s technology. Reiterating an idea he expressed during a “fireside chat” in Los Angeles with LA Mayor Eric Garcetti, Musk noted that the Boring Co.’s tunnels could also be used for utilities such as water lines. Due to the tunnels’ construction and design, Musk stated that “If a water main breaks, it floods through the tunnel one end, and gets pumped out the other.” This would allow cities to address utility issues without much hassle.
Just like Musk’s other companies like Tesla and SpaceX, The Boring Company is in a constant process of innovation. The startup, for one, continues to design and develop its third-generation Tunnel Boring Machine. Once operational, the new TBM would be capable of digging 15 times faster than a conventional boring machine. Apart from using a fully-electric system to increase power, The Boring Machine is also designing the upcoming TBM’s cutter head to process more dirt. In yet another step away from convention, the tunneling startup is also creating reinforcement segments on site using the dirt excavated from the tunnel itself.
Musk has noted that The Boring Company’s tunneling projects are already attracting a lot of interest, stating that “we have more demand on tunnels than we can satisfy,” and that “we have people hounding us to invest nonstop.” In a flourish of classic Elon Musk humor, the Tesla and SpaceX CEO noted that “it’s kinda ridiculous how much interest we’ve had in investing in Boring Company.” Elaborating further, Steve Davis, the CEO of the Boring Company, added that the startup receives “greater than 5 and less than 20 requests per week from different municipalities and stakeholders.”
Tesla Cybercab units finally got a definitive date for when they will be able to be purchased by consumers, ending speculation regarding whether the fully autonomous vehicle would be available in the near term.
During Tesla’s third-quarter 2026 earnings call on October 21, Vice President of Engineering Lars Moravy said the company is aiming to begin delivering its purpose-built Cybercab robotaxi to customers before year-end.
🚨 In short, Cybercabs are slated to go to customers by end of the year. All units are going into Robotaxi fleet currently, per @larsmoravy
Cybercab will be “transport-as-a-service,” but vast majority of Cybercab will be “Tesla-owned,” @elonmusk says https://t.co/R8Qu8QWdmp
— TESLARATI (@Teslarati) October 21, 2026
“We’re trying to get Cybercabs to customers by the end of this year, 2026,” Moravy said. He added that production is underway on the line at Gigafactory Texas, but “all of those are currently going to our own internal Robotaxi fleet.”
Moravy explained that as operations scale, Tesla will “mainly deliver fully designed autonomous vehicles to our customers,” with the Cybercab as the first such vehicle. Initial customer deliveries will start small while the company gains experience with delivery logistics, ownership models, fleet management, and operating autonomous vehicles outside its direct control.
CEO Elon Musk reinforced the limited nature of private sales, describing the Cybercab primarily as a “transport-as-a-service” offering rather than a personal ownership vehicle like the Model 3, Model Y, or upcoming Roadster. “The vast majority of the Cybercab stuff will be Tesla-owned and transport-as-a-service,” Musk said.
The Cybercab is a two-seater vehicle developed by Tesla without a steering wheel or pedals. It relies completely on Tesla’s Full Self-Driving suite and has been in production since February. Early units have been put in Tesla’s Robotaxi service as of early September, when the company launched rides to the public. Tesla previously indicated it would aim to sell Cybercabs for about $30,000.
Unsupervised Full Self-Driving is expected to ship to consumer cars during Q2 2027, Ashok Elluswamy, Tesla’s Head of AI, indicated during the call. Early buyers or fleet operators may receive vehicles whose autonomous operation remains geographically restricted due to lagging regulatory agencies. There are some hurdles that remain ahead of Cybercab deliveries.
Tesla (NASDAQ: TSLA) reported its earnings for the third quarter of 2026, marking a reasonable performance on the various financial metrics. Tesla still plans to hold a call that will field investor questions at 5:30 p.m. ET, 4:30 p.m. CT.
Here’s where Earnings came in:
- Total Revenues: $28.046 reported vs. $28.34B expected
- Non-GAAP EPS: $0.48 reported vs. $0.45 expected
- Operating Margin: 2.6 % reported vs. 2.5% expected
- Operating Income: $718M reported vs. $721M expected
- Free Cash Flow: $1.531B reported vs. ~-$4.51B expected
Tesla $TSLA Earnings Results:
Revenues: $28.046B
Non-GAAP EPS: $0.48
Operating Margin: 2.6%
Operating Income: $718M
FCF: $1.531B— TESLARATI (@Teslarati) October 21, 2026
Major Takeaways
Full Self-Driving (Supervised)
“FSD (Supervised)⁴ attach rate continued to grow, reaching over 75% of new vehicle deliveries in North America – our most mature market – a nearly twenty percentage point sequential increase. We believe that FSD is driving demand in markets where it is available, and we continue to work with regulators to get it approved in other markets.”
Tesla Semi
“We began volume production of Tesla Semi, our Class 8 heavy-duty truck. The top variant can go 500 miles at full 82,000 lbs gross combination weight while achieving an efficiency of 1.7 kWh/mile. That efficiency allows the Tesla Semi to use a third of the energy used by a comparable diesel truck to haul the same payload. In a transportation market where energy is one of the largest components of total cost per mile, this will provide a meaningful advantage to Tesla Semi operators.”
SI Compute
“We plan to reach 400 MW of SI training compute by the end of the year, supporting the development of both vehicle and humanoid robot autonomy software. Additionally, we continued construction for the Austin Fab, where we plan to start commissioning equipment in 2027.”
Robotaxi
“We began deployment of Cybercab into our Robotaxi fleet in Austin. We reached nearly two million cumulative unsupervised miles for our Robotaxi service as of the end of the quarter. Operating hours in Austin are now 6am to midnight, and we expect to reduce wait times via increased fleet supply and improvement of Robotaxi orchestration algorithms. Grok is available in Cybercab with access to Grok Bot and Connectors, which allows users to manage their inbox, calendars, files, chats and tasks – all hands free via voice command – making Cybercab a mode of transport, a productivity space and, with our entertainment options, a second living room.”
Interested in ordering a Tesla? Use my referral code for three free months of Full Self-Driving (Supervised) here.
Tesla (NASDAQ: TSLA) reports its earnings for Q3 today. Here’s what to expect, as the company will reveal its balance sheet after the market closes on Wednesday.
Tesla already reported deliveries just after Q3 ended, and it demolished Wall Street consensus estimates of roughly 462,000 vehicles. Tesla delivered 486,532 cars in the third quarter, which was a big beat, but was down 2.1 percent from the same quarter last year. Energy storage deployments were 13.7 GWh, up year-over-year.
Tesla showrooms picked clean ahead of Q3 end as demand looks strong
For the quarter, analysts have already compiled their predictions for what Tesla will report this afternoon:
- Total Revenues: $28.34B
- Non-GAAP EPS: $0.43
- Operating Margin: 2.5%
- Operating Income: $721M
- Free Cash Flow: ~-$4.51B
Here are a few things we are looking forward to hearing about on the call:
Automotive Gross Margin and Overall Profitability
This was 16.3 percent in Q2, down from 19.2 percent in Q1, and was impacted by warranty charges and some fading regulatory credits. Consensus implies overall gross margin near 18 percent, but a miss here would potentially reinforce concerns about pricing pressure on its vehicles.
Pay attention to energy storage margins as well, especially since Tesla missed GWh expectations, although it was still a strong quarter.
Robotaxi/Cybercab, Unsupervised FSD, and Optimus Progress
The Say questions from retail investors usually focus on these types of projects, and this quarter is no different. Scaling the Cybercab fleet beyond Austin amid the open NHTSA safety review, timeline for Unsupervised FSD in customer cars, Robotaxi unit economics, and Optimus cost per unit plus when it could start generating revenue, are all things to be looking for.
Any concrete timelines or regulatory path details will likely move the stock more than the near-term numbers. SpaceX merger speculation, which was detailed during SpaceX’s earnings call last night, may also surface, although the key details were shared last night.
Elon Musk just confirmed the Tesla and SpaceX merger step everyone was waiting for
Say Investor Questions
- How does the Cybercab fleet scale past Austin, and what’s the regulatory path outside Texas given NHTSA’s open safety review?
- When can we anticipate FSD unsupervised in customer cars?
- When will the CyberCab be available for customer purchase/ownership?
- What’s the unit economics per paid robotaxi mile, and how does it compare to the thirty-cent target?
- Tesla has acknowledged that HW3 vehicles cannot support unsupervised FSD. When will owners know whether they can upgrade their hardware for free, and when will Tesla provide a clear plan?
The full Earnings Call will be streamed this evening after market close around 5 p.m. this evening.
Tesla Cybercab gets a for sale date at last
Tesla Q3 2026 Earnings results: in-line revenues, slight beat on EPS
