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Elon Musk’s new boring company aims to build 30 levels of tunnels for cars and Hyperloop
Elon Musk confirmed that he really is starting to a new tunneling company and as with many of his other side projects, it’s starting right there at SpaceX. He shed new light on the project yesterday in an interview with Bloomberg, announcing that the venture will be an independent venture aimed at building vast underground transportation networks for cars and high speed trains such as the Hyperloop.
What’s in a Name?
Musk’s sense of humor is evident in the list of potential names for the company, Elon even going so far as to consider trolling Toys “R” Us in suing: “My other idea was to call it Tunnels R Us and to essentially troll Toys “R” Us into filing a lawsuit,” the slightly deranged CEO cackled. In my mind, he’s channeling Mr. Burns from the Simpsons. “Now we’ve decided to troll AT&T instead! We’re going to call it American Tubes and Tunnels.”
Ultimately, he settled on The Boring Company which in and of itself is loaded with wordplay. Even the acronym is funny, rocking a big TBC, or To Be Continued, which is comical on more than a few levels with Musk always dreaming up, starting and delivering on yet another completely disruptive idea in a disparate industry.
To kick off this rather mundane company, Elon and SpaceX have a leader in charge but no full time staff though it has secured a domain over at BoringCompany.com.
New Details on The Dig
Elon shed some light on the team’s intentions with the original dig, stating that the only reason it started there is because they already own the land and wouldn’t need any additional permits to get started. In parallel to the on-site construction, a team is working to secure the necessary permits to extend the initial tear in the earth beyond the property lines of SpaceX.
The initial hole will evolve into a sort of ramp that will ultimately serve as the point of entry for a full sized boring machine to get down around 50 feet down which is necessary to avoid gas, sewer and other infrastructure that sits closer to the surface.
But where is it going? Musk and team have not shared any details on the actual destination of the tunnel. With Musk’s ideas and pension for getting things started, there’s likely a team of undergrad interns locked away in the basement of SpaceX mapping out the nuts and bolts of the tunneling solution including where this initial stretch will actually go.
To Infinity and Beyond
To get the project started and to really dig into the possibilities of tunnels, a used boring machine, dubbed Nessie, was purchased for pennies on the dollar, not so much to dig the hole, but to get the team grounded in the technology.
From there, Elon has full confidence that the speed of boring can be improved 5-10x which is based more on a first principles analysis of the technology than actual experience tunneling not that a lack of industry experience has ever stopped Elon in the past, having already transformed the online banking industry with Paypal, the entire automotive industry with Tesla and rocketry with SpaceX.
Disruption
Ever the mad scientist, Elon seems to thrive on change, seeing the possibility through the stagnation, or maybe because of it.
Looking more broadly at urban transportation, even Tesla + Hyperloop will have a tough time solving the problem if we are bound to the surface. Peeling back the crust reveals almost endless volumes of space to play with and Elon hopes to do just that, even talking of certain areas having 30 layers of tunnels which to the unimaginative minds of the masses is incomprehensible.
Whether or not Musk’s latest machination will make it off the property of SpaceX is yet to be seen but one thing is for certain – the fuse that is Elon Musk has been lit and he is going to make an honest effort at leveling up the way we get around town by taking us all underground.
Source: Bloomberg
Tesla just gave what is perhaps its biggest signal yet that the launch of the Cybercab, its autonomous ride-hailing-geared car, is imminent.
The Cybercab has been spotted outside of Gigafactory Texas in massive numbers over the past few days, with hundreds of units being stored on property just days after the vehicle received a Certificate of Conformity from the EPA.
Today, things were a bit different.
Cybercabs spotted on Giga Texas property today had an addition: a Cybercab decal on the side, reminiscent of the “Robotaxi” ones that were placed on Model Ys just as the company launched its ride-sharing platform about a year ago.
Giga Texas drone operator Joe Tegtmeyer noticed the change today:
Tesla Cybercabs are now getting “Cybercab” logos on the side of them!
Tesla did the same with Model Ys that were given “Robotaxi” logos: https://t.co/DanANtw1m7 pic.twitter.com/FqOhH0S9Ks
— TESLARATI (@Teslarati) June 19, 2026
Tesla could be signaling that the Cybercab is preparing to enter the Robotaxi fleet in the coming weeks or months with this move. It seems more symbolic than anything; Tesla is ready to throw Cybercabs in the ride-hailing platform just as it did with Model Ys last year.
The addition of the Certificate of Conformity awarded to the Cybercab is another major factor working to Tesla’s advantage. The company now has permission from the EPA to allow the vehicle to operate on public roads and enter the chain of commerce. It’s officially street legal.
Tesla Cybercab specs revealed: range, curb weight, range ratings, and more
The big question that remains is whether Tesla will be able to operate the car without a safety monitor, especially considering it plans to put the car out there without a steering wheel or pedals. With the Cybercab only having a seating capacity of two, it is hard to believe Tesla will even consider putting a Safety Monitor in the car.
It did recently self-certify as Level 4 and has the ability to operate driverless vehicles in the State of Texas under a law that took effect on May 28. You can read more about that here:
Tesla’s Robotaxi dreams just took a massive step toward reality
We’d imagine Cybercabs will be on the roads as soon as July, but August will likely be a better estimate of when the car will be entered into the Cybercab fleet. It all depends at where Tesla is, as they’ve truly prioritized safety with the rollout of the Robotaxi platform.
Elon Musk has publicly questioned Moody’s credit assessments following the rating agency’s decision to assign SpaceX a Baa1 investment-grade rating, two notches above Tesla’s Baa3. The comments came amid discussions comparing the two companies’ financial profiles.
SpaceX earned its first-time Baa1 rating with a stable outlook from Moody’s. The agency highlighted the company’s leadership in orbital launches, the growing recurring revenue from its Starlink satellite network, strong vertical integration, U.S. government contracts, and emerging opportunities in AI infrastructure.
These factors were cited as supporting robust cash flows, margin expansion, and financial flexibility.
Musk responded directly: “Tesla’s credit rating is ridiculously low tbh,” and added, “Yeah, makes no sense. Tesla has over $40B in cash, no debt, and is consistently profitable!” His remarks underscored Tesla’s balance sheet strength and profitability at a time when many traditional automakers continue to report losses in the shift to electric vehicles.
Yeah, makes no sense.
Tesla has over $40B in cash, no debt and is consistently profitable!
— Elon Musk (@elonmusk) June 19, 2026
Tesla maintains a leading position in the global EV market, with diversification into energy and storage, battery technology, and robotics through projects like Optimus. Recent financial updates show the company generated positive free cash flow of $1.4 billion in Q1 2026, supported by operating cash flow of $3.9 billion. Cash and short-term investments stood at approximately $44.7 billion.
Moody’s has affirmed Tesla’s Baa3 issuer rating with a stable outlook in periodic reviews, acknowledging the company’s EV leadership, technology strengths, including AI for autonomous vehicles, solid profitability, and strong liquidity.
Tesla (TSLA) scores Baa3 Moody’s rating for ‘stable’ outlook
However, the agency has also noted challenges in the automotive segment and expectations for margin pressures.
Musk’s critique highlights a common debate about how traditional rating methodologies apply to high-growth, capital-intensive technology companies. SpaceX benefits from long-term government-backed contracts and diversified, recurring revenue streams, while Tesla’s valuation reflects heavy investment in future technologies such as autonomy and robotics.
Both ratings remain investment-grade, yet the one-notch difference has fueled online discussion about potential inconsistencies in evaluating innovative firms.
The exchange comes as SpaceX explores financing options following its recent valuation milestones, while Tesla continues executing on its multi-year roadmap. Musk’s pointed response serves as a reminder that credit ratings, though influential for borrowing costs, represent one lens through which markets assess corporate strength—and that company leaders often view their financial positions through the lens of long-term innovation and cash generation rather than short-term risk metrics alone.
A new report from Reuters claims that a transport authority in Sweden is pushing back against the approval of Tesla’s Full Self-Driving suite because it will travel over speed limits.
The report says the Swedish Transport Administration (TRV) recommends the European Union votes against FSD’s approval. TRV believes it should not be approved until Tesla disables FSD’s ability to speed.
TRV sent a letter to the European Union’s Technical Committee on Motor Vehicles (TCMV), which is set to meet on June 30 to discuss the potential approval of the Tesla FSD suite in the country. Tesla, which has received various approvals in Europe over the past two months, has not provided a comment.
Teslas operating on FSD do travel over the speed limit, depending on the Speed Profile that is chosen. Drivers have the ability to disengage FSD at any point; Tesla specifically states that those supervising the suite are responsible for its actions.
Let’s cut to the chase: humans operating any vehicle speed almost daily in the United States. Realistically, speed limits in the U.S. are more frequently treated as speed minimums. However, other countries are different, and driving behaviors are less aggressive.
TRV believes that “allowing automated systems to systematically exceed legal speed limits…risks undermining both the legal framework and the expected safety benefits of vehicle automation,” the report stated. It’s surprising that Tesla has not received this claim from other countries previously.
This could be a good argument to bring Max Speed back, the setting that previously allowed the driver to choose the absolute fastest the car would travel.
This would still put the responsibility of supervision in the hands of the driver. It would allow the driver to choose whether the car would travel over the speed limit or not, acknowledging that they set the speed, and if they get pulled over, there would be no ability to argue it.
However, it does not seem as if this is something Tesla will do, especially considering many U.S. drivers have requested the feature in an effort to eliminate speeding or at least tone it down. The company has not shown any interest in bringing it back.
Tesla has approvals for FSD in Europe in Estonia, Lithuania, Denmark, the Netherlands, and Belgium.
Tesla Cybercab launch is imminent after latest sighting at Giga Texas
Elon Musk says this part of Tesla ‘makes no sense’
