News
The Boring Co. becomes finalist for San Antonio, Texas transport project
The Boring Company (TBC) is one of the finalists vying for a tunneling project in San Antonio, Texas. The project will run between the San Antonio International Airport and downtown.
The Alamo Regional Mobility Authority (Alamo RMA) is expected to make a decision by Wednesday, March 16. According to Alamo RMA Chairman Michael Lynd Jr. the board could select a finalist and start negotiating a development agreement or postpone the decision. The board may also decide not to move forward with the transportation project altogether. The last two companies up for the project are Elon Musk’s tunneling company and Bexar Automated Transport (BAT). Both have vastly different proposals.
“Even if we decide to move forward with a group this week, there’s no assurance that we’ll get to a point that we’re comfortable that the concept is viable,” said Lynd.
The Boring Company’s Proposal
Rumors of a Boring Company tunnel in San Antonio spread last year. TBC proposed twin underground tunnels to the Alamo RMA in a presentation dated January 2022. Tesla vehicles would transport riders between the international airport and downtown.
The Boring Company estimated that the cost of the twin tunnels would be between $241 million to $298 million. TBC would self-finance the project before turning it over to the board. San Antonio Express-News suggested that Elon Musk’s tunneling company aimed to generate income from the project by operating the loop, similar to its deal with the Las Vegas Convention and Visitors Authority (LVCVA) with the Las Vegas Convention Center (LVCC) Loop.
In Sin City, TBC runs the LVCC Loop for the LVCVA. The LVCC Loop offers free rides to convention center attendees and generates income for the LVCVA through ads, sponsorships, and facility rentals.
The Boring Company has another tunneling project in SIn City, called the Vegas Loop. TBC owns and operates the Vegas Loop. Since the Vegas Loop is not operational yet, the Alamo RMA does not know how much TBC would charge local passengers or the revenue the twin tunnels could generate. However, TBC did release a list of possible fare prices for the Vegas Loop in 2021. Prices started at $5 for a 3-minute ride through a 2.8-mile tunnel.
Bexar Automated Transport’s Plans
The other finalist for the San Antonio transportation project, BAT, proposed an autonomous all-electric bus system. BAT’s proposed bus system would travel through a combination of elevated and underground tracks. The buses could accommodate up to eight passengers per trip, running at 45 mph between the airport and the Convention Center. BAT estimated its proposed tunneling system would cost $330 million. The company also stated it would require a public subsidy for construction and recommended that VIA Metropolitan Transit operate the system.
Documents from Praetor Capital forecasted that BAT’s proposed transportation system could charge passengers $6.50 per trip. BAT estimates ridership to be about 500,000 per year for a $13.7 million revenue.
The Alamo RMA board believes it could sell bonds to finance a transportation system project. Ultimately, the final decision seems to rely on finances.
“Ultimately, it’s got to be financible. As the RMA, we don’t have a bunch of money sitting in a bank account that we can throw at a project like this,” Lynd stated.
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News
Starlink gets its latest airline adoptee for stable and reliable internet access
The company said it plans to “rapidly integrate Starlink into its fleet,” and that the first Starlink-equipped aircraft will enter service this Summer.
SpaceX’s Starlink, the satellite internet program launched by Elon Musk’s company, has gotten its latest airline adoptee, offering stable and reliable internet to passengers.
Southwest Airlines announced on Wednesday that it would enable Starlink on its aircraft, a new strategy that will expand to more than 300 planes by the end of the year.
The company said it plans to “rapidly integrate Starlink into its fleet,” and that the first Starlink-equipped aircraft will enter service this Summer.
Tony Roach, Executive Vice President, Chief Customer and Brand Officer for the airline, said:
“Free WiFi has been a huge hit with our Rapid Rewards Members, and we know our Customers expect seamless connectivity across all their devices when they travel. Starlink delivers that at-home experience in the air, giving Customers the ability to stream their favorite shows from any platform, watch live sports, download music, play games, work, and connect with loved ones from takeoff to landing.”
Southwest also said that this is just one of the latest upgrades it is making to provide a more well-rounded experience to its aircraft. In addition to Starlink, it is updating cabin designs, offering more legroom, and installing in-seat power to all passengers.
Southwest became one of several airlines to cross over to Starlink, as reviews for the internet provider have raved about reliability and speed. Over the past year, Hawaiian Airlines, United Airlines, Alaska Airlines, airBaltic, Air France, JSX, Emirates, British Airways, and others have all decided to install Starlink on their planes.
This has been a major move away from unpredictable and commonly unreliable WiFi offerings on planes. Starlink has been more reliable and has provided more stable connections for those using their travel time for leisure or business.
Jason Fritch, VP of Starlink Enterprise Sales at SpaceX, said:
“We’re thrilled to deliver a connectivity experience to Southwest Airlines and its Customers that really is similar, if not better, than what you can experience in your own home. Starlink is the future of connected travel, making every journey faster, smoother, and infinitely more enjoyable.”
Starlink recently crossed a massive milestone of over 10 million subscribers.
Elon Musk
Tesla nears closure of Full Self-Driving purchasing option
The move to bring FSD to this type of purchasing program comes after CEO Elon Musk noted in January that Tesla would move away from the outright purchase option.
Tesla is nearing the closure of its Full Self-Driving outright purchasing option, which will be removed on February 14, meaning Saturday will be the last time it can be bought as a non-subscription.
Tesla is aiming to move its Full Self-Driving suite to a subscription-only platform, a move that will enable people to only pay monthly for the semi-autonomous driving functionality.
The move to bring FSD to this type of purchasing program comes after CEO Elon Musk noted in January that Tesla would move away from the outright purchase option.
It is currently priced at $8,000 for the outright option to use Full Self-Driving, a substantial decrease compared to the $15,000 it was priced at one time. For the monthly subscription, it is just $99 per month, but that price will change, likely increasing as things get more advanced.
Tesla is overhauling its Full Self-Driving subscription for easier access
We say it will likely increase because there is no indication of how Tesla will price FSD. There has been some speculation that Tesla could utilize a tiered system to price FSD, which would potentially allow owners to pick and choose a set of features that would be most ideal for them.
This would potentially introduce an even more affordable option for FSD use, but this is unconfirmed. The reason many say this could be an option for Tesla is the fact that if the price goes up further, the take rate, which is currently around 12 percent at its most recent estimate, could be lower.
Musk needs 10 million active Full Self-Driving subscriptions to unlock one of the tranches of his newest compensation package.
The move to a subscription-only platform has its positives and negatives, and owners have been more than vocal about these since Musk confirmed the move.
Positives
- Lower barrier to entry and higher potential adoption
- Financially better for many users
- Easier transfers and brand loyalty
- Predictable recurring revenue for Tesla
- Access to the latest features
Negatives
- Higher long-term cost for loyal/long-term owners
- No true “ownership” or permanence
- Risk of future price hikes or even deactivation
- Perceived as of less value
- Impact on resale and used market
Overall, there is a split among the Tesla community in terms of what they see as the “right” way to handle this. Tesla is likely to shed more details on what its plans for the subscription-only platform will be, including pricing, in the coming weeks.
Elon Musk
Elon Musk’s Boring Company selected for Universal Orlando tunnel project
The underground transport tunnel is designed to address the persistent gridlock surrounding International Drive.
Elon Musk’s The Boring Company has been selected for a proposed underground transit system connecting Universal Orlando Resort and the newly opened Universal Epic Universe.
The underground transport tunnel is designed to address the persistent gridlock surrounding International Drive.
As noted in a blooloop report, Universal’s Shingle Creek Transit and Utility Community Development District approved a resolution showing its intent to designate The Boring Company as the contractor for the project.
The agreement covers the full scope of the project, from the tunnel’s design, construction, and maintenance. The project has also been described in public documents as a “point-to-point innovative transportation” initiative with a 25-year agreement.
The proposed Boring Company tunnels would directly link Universal’s existing parks with Epic Universe, which sits roughly three miles away from Universal Orlando Resort. Today, buses are the only direct connection between the two destinations.
Project requirements were quite stringent. Bidders were required to demonstrate at least $75 million in bonding capacity, have a minimum of seven years of operational experience, and show prior delivery of a comparable project valued at $25 million or more within the past 15 years. The Boring Company, thanks in no small part to the Vegas Loop, meets these requirements.
The Orlando selection adds to The Boring Company’s growing portfolio of Loop-style systems. In Las Vegas, the Las Vegas Convention Center Loop has transported more than two million passengers in Tesla vehicles through underground tunnels since 2021. The greater Vegas Loop system is also under construction.
For now, residents in the area seem enthusiastic about the upcoming project. In a comment to Fox35, residents noted that the tunnels could improve traffic in the area.
“We are very congested at certain times and certain hours and that would certainly help with people not having to budget their time,” Mary Walters-Clark, a resident, stated. Another resident, Scott Heinz, echoed similar sentiments. “I think it would be a new opportunity to lessen traffic load and good for visitors as well,” he said.
The tunneling startup has started bringing its Loop projects to international locations. It recently signed a memorandum of understanding with Dubai’s Roads and Transport Authority to explore the development of a 17-kilometer underground Loop network beneath Dubai.