News
Musk’s Boring Co reveals plan to support Hyperloop in published FAQ
Elon Musk’s plan to integrate Tesla electric sleds traveling through underground tunnels dug by The Boring Company will also include support for vacuum-sealed tunnels used by 600+ mph Hyperloop Pods.
The reveal comes from the company’s newly published Frequently Asked Questions page that does away with introductions and cuts straight to the chase.
“A large network of road tunnels many levels deep would fix congestion in any city, no matter how large it grew (just keep adding levels). The key to making this work is increasing tunneling speed and dropping costs by a factor of 10 or more – this is the goal of The Boring Company. Fast to dig, low cost tunnels would also make Hyperloop adoption viable and enable rapid transit across densely populated regions, enabling travel from New York to Washington DC in less than 30 minutes.” reads the FAQ.
The company isn’t even traveling at a snail’s pace, yet it has big plans to do just that – dig tunnels faster than a snail travels. In this case, resident snail Gary (who lives in a pineapple under the sea) can move at 14 times the speed of a Tunnel Boring Machine (TBM) and represents the target speed for the company’s boring machines.
The Boring Company’s pet snail named Gary
The Framework for Hyperloop
The FAQ sheet broke news that Musk and the team at The Boring Company, in cooperation with Tesla, are planning to build tunnels that can support multi-payloads including that of a Hyperloop Pod. In addition to enabling travel and transport at much higher speeds, this addition is likely to set the Tesla electric sled platform as the standard track that will be used to support mobility of the Hyperloop Pod.
Certain segments of the underground tunnels will have a vacuum shell, if not the entire track, that will allow the tunnel to be held at vacuum. Long distance travel would likely be performed in tunnels held at vacuum, enabling for higher speeds of travel. This format of local versus long distance is the same used by train systems in Europe that have different trains and tracks depending on train speed and distance of travel.
Converts Internal Combustion Vehicles into EVs
Another upside of the system is that it enables the conversion of internal combustion vehicles into zero emission vehicles. When a traditional petroleum powered vehicle is moved onto an electric sled, it will be moved through a system that emits zero emissions. This eliminates the emissions these vehicles would have emitted if they would had ordinarily travelled by road to their destination.
Many people will take Hyperloop Pods to their destinations due to the lower cost of travel. Logistics companies will also shift payload transportation to the tunnel system due to the lower cost as a result of not having a driver, higher speed and automated control over the load. With all of this traffic moving to the conceptual tunnel-based transportation system, it has the potential to radically slash the amount of transportation related emissions and demand for fossil fuels.
-
If the petroleum industry wasn’t paying attention to Musk and the impact Tesla may have on automotive related fuel consumption, this announcement is surely the wake up call they needed.
Earthquake!
Hollywood thrillers over the years have cast subway systems as the perfect set for apocalyptic thrillers where only a muscular hero armed with backpack full of lithium ion batteries, a stick of bubblegum and the copper from the wiring for the lights can save the day.
The truth, it turns out, is much different. The FAQs relay the facts that structural engineers have know for ages – that properly designed tunnels are one of the safest places to be during an earthquake. The tunnels is not subject to surface forces and instead of resisting the movement of the earthquake, moves with the ground.
Dirty Business
When tunneling in the Minecraft video game, the tunnel materializes and the blocks smashed with a pickaxe or sword simply disappear or move into inventory. The real world is unfortunately not so simple, but The Boring Company has plans to make it just a bit more like Minecraft.
Two major challenges with traditional tunneling are the massive amount of earth being displaced by the tunnel and the equally as challenging amount of concrete that is required to seal the circumference of the tunnel. To solve these challenges together, The Boring Company hopes to develop a process for using the resulting soil to produce earthen bricks. These bricks could even be used as a component of the tunnel lining itself or simply sold as a product.
This is yet another piece of evidence that Tesla truly is attempting to create Minecraft in the real world, reviving the ancient practice of crafting bricks from dirt.
In addition to turning a liability into an asset, this has the potential to drastically cut the amount of concrete used in the production of the tunnels it is constructing. Because of the sheer mass of concrete and the effort required to extract its components, and ship them to the destination, concrete production accounts for a staggering 4.5% of the world’s greenhouse gas emissions. The Boring Company hopes to take a chunk out of those emissions by using bricks where possible in the construction of its tunnels.
-
Where The Boring Company will go from here is anyone’s guess but this latest update makes it clear that Musk is never willing to settle for the status quo, and always begins working from the ground up – or in this case, from the ground down – when moving into a new business.
In a new note to investors on Tuesday, Morgan Stanley analyst Andrew Percoco said that Tesla has one big financial question to answer for investors regarding its Robotaxi rollout, Full Self-Driving software, and Optimus.
Percoco said in the note that, for the most part, investors are still very positive about the direction the company is headed. However, there are some things the firm would like to see, and they have to do with financials.
Tesla (TSLA) Q2 2026 earnings results: miss on EPS, beat on revenue
Tesla bulls are more than convinced that the company’s Full Self-Driving software is proof it can develop physical AI. Financially, however, there are still some questions, especially on elevated spending, which CEO Elon Musk said would occur as the company works to roll out Robotaxi faster and continue developing its Optimus robot.
The latter two are where Tesla will have to prove progress to investors, as Percoco writes that both projects “will require clearer evidence that Robotaxi is scaling and more tangible Optimus proof points to support the ROI on elevated capex.”
Percoco said the second quarter earnings call did not change his long-term thesis of where Tesla is positioned in the AI race, which is out in front. However, there are concerns that weaker gross margins and higher R&D spend will stress financials, and that has “sharpened our (and investors’) focus on measurable progress across Robotaxi and Optimus.”
Additionally, Robotaxi still needs to be proven with more operation in existing cities while maintaining safety but improving how many rides it gives in any given time, he said. For Optimus, Percoco wrote that he is “still looking for evidence beyond commentary around SOP.”
-
Morgan Stanley put Percoco in charge of covering Tesla after long-time analyst Adam Jonas transitioned to the automotive side.
Currently, Morgan Stanley has a $415 price target on Tesla and a ‘Hold’ rating on the stock. It is trading at around $330 at the time of publication, which was 2:30 P.M. on the East Coast.
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.
Tesla has one big financial question to answer for investors: Morgan Stanley
SpaceX AI investment gamble will make it a big winner, firm says
