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The Boring Company’s unveiling showed another Musk-driven disruption in the making
Before the opening party for the Hawthorne test tunnel began, Elon Musk gave a rather straightforward presentation about The Boring Company’s technology to members of the media. The discussion provided a number of pertinent updates and new information about the tunneling startup’s activities, several of which were reiterated when Musk took the stage to open the unveiling event.
As the Tesla and SpaceX CEO lightheartedly discussed the updated concepts of The Boring Company’s tunneling technology, it quickly became evident that Tuesday’s event could very well be the start of yet another Elon Musk-driven disruption.
Every single company that Elon Musk started, or played a part in starting, has gone on to be a disruptor of an established industry. In his 20s, Musk and his brother Kimbal shook up the widely established Yellow Pages industry with Zip2. Musk later took on traditional banking with X.com, which eventually merged with PayPal, one of the internet’s most established financial services that are still widely used today. Tesla, an electric car startup Musk backed in its very early days, is now an automaker forcing legacy carmakers to design and release compelling EVs. SpaceX, a company that could be considered as the culmination of Musk’s childhood dreams of interplanetary travel, is becoming more and more prevalent in the US space industry.
Man vs. Traffic pic.twitter.com/UDDE7oucKM
— TESLARATI (@Teslarati) December 19, 2018
In a way, Musk’s penchant for disruption results from his tendency to look at problems and adopt unconventional strategies to arrive at breakthrough results. In the case of SpaceX, for example, it was the company’s capability to reuse rockets that is allowing it to compete in the space industry. Electric vehicles existed before Tesla too, but the company made itself different by creating EVs that were desirable in both design and performance. This same thinking was evident when Musk presented his ideas for The Boring Company. The startup didn’t necessarily reinvent the wheel when it came to tunneling, but the company did employ a number of novel solutions that allowed it to make tunneling a lot faster, for a far lower price.
At the core of The Boring Company’s concepts are its smaller tunnel designs, which feature roughly half the diameter of conventional tunnels. This, according to the startup, reduces costs by 3-4 times. The Boring Company is also aiming to develop ways to increase the speed of its Tunnel Boring Machines (TBMs). Traditional TBMs are notable for their slow speed, and Elon Musk has lightly noted that a snail is effectively 14 times faster than a boring machine. As such, the Boring Co. aims to develop TBMs that can actually keep pace with a snail. The Hawthorne test tunnel provides a glimpse of the cost savings associated with the company’s tunnel design as well, as the 1.14-mile project was completed with just $10 million of funding. Musk notes that conventional tunneling projects, which use larger tunnels and slower machines, can balloon to up to $1 billion per mile.
A shrine to the late Gary who inspired it all. Pineapple gummies to celebrate. pic.twitter.com/ZFTbui6TcC
— TESLARATI (@Teslarati) December 19, 2018
Musk has mentioned that The Boring Company has been working on improving the capabilities of its TBMs. For its next-gen machine, Musk stated that the tunneling startup had developed a new TBM cutter head that operates faster, allowing it to process and move dirt in a more efficient manner. The Tesla and SpaceX CEO further noted that The Boring Company is developing a system that will enable reinforcement segments to be created and set up on site. The company is even planning on using the dirt from the cutter head as material for tunnel reinforcements. Such a system would allow the tunneling startup to increase its digging speeds even further, especially considering that conventional tunneling practices usually involve only 10% of actual digging, with 90% of operations usually being consumed by the laying of tunnel reinforcements.
Being a company started by Elon Musk, The Boring Company is in a constant state of innovation. This was evident in the updates to the electric skates design that were initially planned for the Loop system. Concepts of the high-speed tunnels involved vehicles traveling on electric skates. On Tuesday, though, Musk noted that “There won’t be a skate. The vehicle is the skate.” Such a system was adopted in the Hawthorne tunnel’s test rides, where a Model X fitted with electric skates on its front wheels was used to transport passengers through the tunnel. Even the garage-elevator that would be used to lift vehicles back onto the road is created with efficiency in mind, being pre-fabricated and constructed off-site.
Just like his other ventures, The Boring Company has the potential to be a disruptor. With its ultra-high-speed tunnels, the startup might actually help solve the problem of traffic congestion. The Boring Company’s tunnels could even be a stepping stone towards the eventual creation of Hyperloop transportation, which involves pods traveling inside low-pressure tubes at speeds of up to 700 mph. The Boring Company’s disruption might not only be limited to transportation, either, as the startup is also poised to release the Boring Bricks, which are blocks made from tunneling rock that could be used for low-cost housing. Permits for the creation of The Brick Store, a physical outlet where these blocks are set to be sold, have also been.
The Boring Company might be a fun startup, complete with Not-a-Flamethrowers, pet snails, sharp-tongued French knights, and a Monty Python-style watchtower made of Boring Bricks, but beneath all the unveiling event’s fun atmosphere was the sense that there is another disruption in the making — one that could complement the innovations being pushed by SpaceX and Tesla.
In the world of autonomous ride-hailing, there are only a handful of names. Among those few companies lies a strategy play by each to keep the opposition on their toes. Tesla, on the other hand, already tipped its hand at where it is headed next.
Tesla has signaled its next major push in the autonomous ride-hailing market by filing for an Autonomous Vehicle Network Company permit in Nevada (Docket 26-05015). Through Tesla Robotaxi, LLC, the company seeks approval to operate up to 5,000 robotaxis in Clark County, including high-traffic areas like Las Vegas and Henderson airports, within the first 12 months of launch.
This filing builds on Tesla’s earlier testing approvals from the Nevada DMV in September 2025 and preparations such as maintenance hubs in the Las Vegas area. Nevada represents a strategic expansion into a major tourist destination, where high visitor volumes could drive strong utilization and showcase the reliability of unsupervised autonomy to a broad audience.
We’d have to assume this means Tesla is targeting Las Vegas, and it’s a great move from a business perspective.
Vegas is such a melting pot of people from all around the country and the world. It will expose people from all corners of the globe to Tesla’s autonomy capabilities https://t.co/Qz3fQmhULF pic.twitter.com/Du5pj2RyWC
— TESLARATI (@Teslarati) June 6, 2026
Approval would mark a significant step toward commercial operations in a new state, following progress in Texas.
Tesla’s shareholder decks and earnings calls have clearly outlined these ambitions. In the Q4 2025 shareholder deck, the company listed planned Robotaxi coverage for the first half of 2026, explicitly naming Las Vegas alongside Phoenix, Miami, Orlando, and Tampa, with Dallas and Houston already advancing. Austin was noted as “ramping unsupervised,” while the Bay Area remained in safety-driver mode.
By Q1 2026, the deck updated statuses to reflect launches in Dallas and Houston, with “preparations underway” for the remaining cities, including Las Vegas. Paid Robotaxi miles nearly doubled sequentially in Q1, underscoring momentum even as broader timelines adjusted slightly for regulatory and operational readiness.
On earnings calls, CEO Elon Musk and executives have emphasized a phased rollout prioritizing safety. Unsupervised operations in Texas have shown strong results with no reported accidents or injuries in the program. Tesla continues groundwork in additional major U.S. metros through testing and permitting, positioning it to scale quickly once approvals clear.
This Nevada move aligns with Tesla’s vision of transforming from an EV maker into an AI and robotics leader. The forthcoming Cybercab, which started production at Giga Texas in April, is expected to eventually dominate the fleet, replacing many Model Y vehicles and driving down costs to enable affordable rides.
For investors and the industry, this signals Tesla’s intent to dominate key Sun Belt and tourist markets where weather, regulations, and demand favor rapid scaling. Success in Las Vegas could validate the model for denser urban and high-tourism environments, accelerating the shift toward a future where robotaxis generate meaningful revenue.
Las Vegas will also expand knowledge among the general public at Tesla’s capabilities, helping people experience driverless ride-hailing from several companies during their time on The Strip.
Investor's Corner
Tesla just did something in South Korea that no foreign carmaker has ever done
Tesla’s Model Y just became South Korea’s best-selling car, beating every domestic model in May.
Tesla did something last month that no foreign car has ever done in South Korea by outselling every vehicle in the country, domestic or imported, finishing the month with Model Y as the single best-selling car across the entire Korean market. According to data from the Korea Automobile Importers and Distributors Association released on June 4, the Model Y recorded 8,762 units sold in May, pushing the Kia Sorento into second place at 7,836 units and the Hyundai Grandeur into third at 5,183 units. It is the first time an imported vehicle has outsold every domestic model on a single-month basis.
Tesla imported 10,866 cars into South Korea in May, making it the top import brand for the fourth consecutive month. BMW followed at 6,555 units, less than two-thirds of Tesla’s total, while BYD registered just 1,032 units. The combined domestic sales of GM Korea, Renault Korea, and KG Mobility last month totaled just 7,019 units, meaning a single Tesla model outsold three Korean automakers combined.
Tesla FSD earns high praise in South Korea’s real-world autonomous driving test
South Korea has historically been one of the hardest markets for foreign automakers to crack. Hyundai and Kia together control close to 70% of the overall market and carry deep consumer loyalty built over decades. Tesla’s path into this market was an uphill battle due to high import duties, limited service infrastructure, and early skepticism about charging networks. In 2024, the Model Y was the best-selling imported car in South Korea with 18,717 units for the full year. By 2025, after the Juniper refresh, it cleared 50,000 units and took the top spot among all EVs.
Year to date, Tesla has a 250.8% increase in the country over the same period last year, and now holds a 30.8% share of the entire imported car segment for 2026. EVs as a category represented 48.6% of all imported passenger car registrations in May. As Teslarati has reported, the Juniper refresh brought meaningful improvements to range, interior quality, and ride refinement that addressed the most common criticisms of earlier Model Y versions. Those upgrades appear to be resonating in markets like South Korea where buyers compare Tesla directly against high end domestic competitors.
The Tesla Model 3’s cheapest trim level just got a major accolade, as Edmunds just revealed the Rear-Wheel-Drive trim of the all-electric sedan is the most efficient EV that is currently in production.
The 2026 Tesla Model 3 Rear-Wheel-Drive not only beat its EPA-estimated range by 30 miles, but it also bested its efficiency mark by 13.2 percent. The Model 3 tested by Edmunds traveled 393 miles, beating its EPA rating by 8.3 percent, while it returned 21.7 kWh per 100 miles, or 4.61 mi/kWh.
Beating those two metrics is especially pertinent when it comes to EV ownership and driving down the cost of ownership from ICE counterparts across the board. The real money savings come from driving down the cost of driving per mile, especially when it comes to high-mileage driving.
Edmunds stated in its report and review that the process it uses to test EV efficiency is aimed at giving “the most accurate representation of a car’s real-world range.” The assessment uses a strict route that features 60 percent city and 40 percent highway driving, and an average speed of 40 MPH across the trip.
It also drives each car within 5 MPH of all posted speed limits, and the climate control is set on Auto at 72 degrees to ensure even testing. In other words, Edmunds does not use methods to maximize efficiency, and instead tries to make it reasonable to achieve the same ratings yourself.
In comparison to other EVs, it beat the 2026 Mercedes-Benz CLA 350, which went 385 miles, as well as the 2026 Audi A6 Sportback E-tron Prestige AWD, which traveled 392 miles. Only the Mercedes-Benz CLA 250+ traveled farther, making it an impressive 434 miles on a charge.
However, the Tesla Model 3 RWD’s efficiency is “unmatched” because of its incredibly low energy usage per mile.
🚨 Tesla Model 3 RWD:
-At $36,990, it is $9,000 cheaper than the average transaction price for a new car ($46,023 via KBB)
-Was 13.2% more efficient than its EPA estimate
-Traveled 393 miles on a charge despite its 363-mile EPA range https://t.co/Grov2hXqpa pic.twitter.com/Zl8rnZZLIB
— TESLARATI (@Teslarati) June 8, 2026
The Model 3 Rear-Wheel-Drive might be the best bang-for-your-buck EV if you’re looking to buy new and want access to features like Full Self-Driving, while also being aware of efficiency. This trim of the Model 3 is also priced over $9,000 cheaper than what Kelley Blue Book says the average transactional price for a new car was in May 2026, which sits at $46,023.
If you’re looking for something with more speed, an All-Wheel-Drive drivetrain, or more premium features, the Premium trims of the Model 3 currently come with one year of Free Supercharging.
Tesla tipped its hand at where Robotaxi is heading next
Tesla just did something in South Korea that no foreign carmaker has ever done
