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Musk’s Boring Company faces roadblock in Maryland by Attorney General

Governor Larry Hogan with Maryland officials at The Boring Company project site [Larry Hogan via Twitter]

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The Boring Company’s efforts to dig a tunnel system below the Baltimore-Washington Parkway hit an unexpected roadblock recently, after Maryland Assistant Attorney General David Stamper voiced his opposition to the tunneling startup’s permit granted by the State Highway Administration last year.

According to Stamper, the operations of the Elon Musk-led tunneling startup does not align with the company’s current conditional utility permit. Back in October 2017, the SHA granted The Boring Co. a permit to begin digging its tunnels under the Baltimore-Washington Parkway, provided that the tunneling startup meets the necessary requirements. As noted by the Maryland Attorney General in a letter, however, The Boring Company’s permit was not within the SHA’s rights to give, especially since the tunnels are set to be utilized for Hyperloop transportation.

“A Hyperloop system does not produce, transmit, or distribute communications, cable television, power, electricity, light, heat, gas, oil, crude products, water, steam, waste, or ‘other similar commodity. A Hyperloop moves people, automobiles, and cargo. For this reason, I do not believe SHA can authorize the construction of the proposed ‘transportation tunnels’ within the Baltimore-Washington Parkway right-of-way by issuing a utility permit.”

Stamper further asserted that for The Boring Company to acquire the proper permit, the entire project must go through an intensive review and comment process, followed by an easement agreement that must be presented to the Board of Public Works for approval. Only then can The Boring Company start digging.

The Attorney General, however, explained that the state is not prohibiting the construction of the tunnel system at all. According to Stamper, his grievances only lie in the permit of the tunneling startup, nothing more.

“There very well may be some process for authorizing such a project. But I do not believe SHA can authorize construction of a Hyperloop system within the right-of-way of the B-W Parkway simply by issuing a utility permit,” Stamper wrote, according to The Baltimore Sun.

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Maryland’s Department of Transportation, however, has taken a stern opposing stance towards the Attorney General’s opposition to The Boring Company’s Baltimore-Washington Parkway project. In a statement to the Sun, MDOT spokeswoman Erin Henson asserted that the permits for the tunneling startup’s initiatives could be resolved in a rather simple manner.

“We respectfully disagree with the advice provided by the Assistant Attorney General for the General Assembly, which was given without consulting with the Maryland Department of Transportation. Instead of 10 pages, we could have clarified in one that MDOT does have the right and responsibility to permit construction under state highway right of way, including the conditional permit issued to The Boring Company to build a concrete shell under the Baltimore-Washington Parkway.

“As stated months ago, the Federal Railroad Administration would provide the appropriate federal approvals for Hyperloop. Maryland should be proud to be the home for leading technology that can add one more tool to fight congestion that plagues Marylanders every day.”

For now, at least, it seems like the developments in The Boring Company’s Maryland initiative are the last thing from being boring.

Simon is an experienced automotive reporter with a passion for electric cars and clean energy. Fascinated by the world envisioned by Elon Musk, he hopes to make it to Mars (at least as a tourist) someday. For stories or tips--or even to just say a simple hello--send a message to his email, simon@teslarati.com or his handle on X, @ResidentSponge.

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Tesla creates clever solution to simplify and improve its Service

Raj Jegannathan, a Vice President of IT/AI-Infra, Apps, Infosec, and Vehicle Service Operations, revealed that Tesla has started a small pilot program at a few service locations to combat this issue.

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Credit: Tesla

Tesla has created a clever solution to simplify and improve its Service. Tesla performs most of the services that are needed on its vehicles at its company-owned Service Centers.

However, service has been a weak point of the company, as some regions have fewer Service Centers than others. This can cause long wait times for Tesla owners in some parts of the country.

There are also instances where customers do not agree with what Tesla is saying about their vehicle. In fact, one instance that revealed this new change Tesla is making to its Service was precisely that.

One owner posted on X that his vehicle’s battery seal had failed after a recall was issued. Tesla insurance and Tesla Service both did not assist, and it took CEO Elon Musk stepping in to get the issue resolved:

Another owner suggested there should be a more streamlined communications process between the customer and the Service Center, a solution that has been missing.

Raj Jegannathan, a Vice President of IT/AI-Infra, Apps, Infosec, and Vehicle Service Operations, revealed that Tesla has started a small pilot program at a few service locations to combat this issue.

Elon Musk wants Tesla Service to fix two-thirds of cars in the same day

Jegannathan said that Tesla has started to share local and regional leader contact information so customers have the ability to reach out when they have complaints or disagree with warranty claims, changes in estimates, or initial diagnostics.

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It is available in a handful of locations already, and Jegannathan said that once abuse guardrails are built, this will expand to all locations:

This would be a major improvement in the Service portion of Tesla’s business. There are common disagreements between Service and customers, specifically when Service’s suggestions don’t align with the customer’s beliefs.

When it comes to things like a warranty claim, these issues are not really up for interpretation. Instead, the repairs should be made. If there is a misunderstanding on Service’s side, a simple message from the customer could have resolved the issue. That’s basically what happened here.

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Investor's Corner

Tesla gets its best analysis from Morgan Stanley as ‘it’s all about to change’

He maintained its ‘Overweight’ rating and the $410 price target Morgan Stanley had on the stock.

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(Credit: Tesla)

Tesla has gotten perhaps its best analysis from Morgan Stanley in quite some time, as the Wall Street firm claims that “it’s all about to change.”

That phrase could be used for both the company’s status and the world in general.

Analyst Adam Jonas said in a new note on Thursday to investors that Tesla could be one of the major winners in terms of the global transition from what it is now to what it will be.

He describes the global shift that will occur over the next few years:

“Have you interacted with a robot today? Have you even seen a robot today? No? Well, take a mental picture because it’s all about to change. When we meet someone who has never been in a Waymo or a Tesla Cybercab (which is most people), we frequently see a wince and a response such as ‘I’m not sure I’d feel comfortable getting in a car without a driver.’ We imagine going back in time to 1903 and asking people if they’d feel comfortable in an airplane.’”

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The same technological revolutions that have occurred over the past 150 years will continue to occur again and again. We are on the verge of another, Jonas believes, as companies like Tesla are working on artificial intelligence tech, which includes changing the way we look at things like transportation and labor.

Jonas includes an interesting tidbit in his note about how humanoid robots could change wages, and how it could work into the advantage of Tesla, especially as it is developing its own Optimus robot:

“We estimate 1 humanoid robot at $5/hour can do the work of 2 humans at $25/hour, generating an NPV of approximately $200k/humanoid. 1 robot shaped car can potentially drive down cost/mile of a ride share vehicle to <$0.20 mile (1/10th human-driven ride-share).”

Jonas sees Tesla as a key player in how AI will impact things like manufacturing and various automotive industries, and he believes there is long-term potential for AI, robomobility, and even autonomous eVTOL platforms.

Tesla stock: Morgan Stanley says eVTOL is calling Elon Musk for new chapter

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He maintained its ‘Overweight’ rating and the $410 price target Morgan Stanley had on the stock.

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Tesla expands Robotaxi program in Austin to new riders

Tesla has been expanding both the rider group and the geofence in Austin slowly, making sure to prioritize safety and avoid any major events with the early rollout.

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Credit: @TerrapinTerpene/X

Tesla is expanding its Robotaxi program in Austin, Texas, as several people have received invitations to participate and take rides.

Tesla first launched the Robotaxi platform on June 22. It invited a handful of people to participate in the first-ever public rides. We were lucky enough to get an invitation, and our permissions have been expanded in the Bay Area pilot program as well.

The group was small and consisted of big names in the Tesla community. It expanded and is continuing to offer these exclusive invitations to notable members of the Tesla community.

There have been fewer than five subsequent invitations after the first group’s were sent in late June:

Tesla has been expanding both the rider group and the geofence in Austin slowly, making sure to prioritize safety and avoid any major events with the early rollout.

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Tesla’s new Robotaxi geofence shape is an FU by Elon Musk to the competition

“We are being very cautious. We do not want to take any chances, so we are going to go cautiously. But the service areas and the number of vehicles in operation will increase at a hyper-exponential rate,” CEO Elon Musk said during the Q2 Earnings Call.

Eventually, the Robotaxi platform will not require an invite, and it will operate without geofences. Musk believes Tesla can get there within three or six months, and plans to have at least half of the U.S. population with access to a Robotaxi by the end of the year:

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“I think we will probably have autonomous ride-hailing in probably half the population of the U.S. by the end of the year. That’s at least our goal, subject to regulatory approvals. I think we will technically be able to do it. Assuming we have regulatory approvals, it’s probably addressing half the population of the U.S. by the end of the year.”

Tesla plans to have regulatory approval in Nevada, Arizona, and Florida sooner than in other states.

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