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The Boring Company’s unveiling showed another Musk-driven disruption in the making

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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.

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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. 

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.

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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. 

A Tesla Model X being lifted through a vehicle elevator. (Credit: The Boring Company)

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.

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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Investor's Corner

Tesla stock closes at all-time high on heels of Robotaxi progress

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Credit: Tesla

Tesla stock (NASDAQ: TSLA) closed at an all-time high on Tuesday, jumping over 3 percent during the day and finishing at $489.88.

The price beats the previous record close, which was $479.86.

Shares have had a crazy year, dipping more than 40 percent from the start of the year. The stock then started to recover once again around late April, when its price started to climb back up from the low $200 level.

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This week, Tesla started to climb toward its highest levels ever, as it was revealed on Sunday that the company was testing driverless Robotaxis in Austin. The spike in value pushed the company’s valuation to $1.63 trillion.

Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing

It is the seventh-most valuable company on the market currently, trailing Nvidia, Apple, Alphabet (Google), Microsoft, Amazon, and Meta.

Shares closed up $14.57 today, up over 3 percent.

The stock has gone through a lot this year, as previously mentioned. Shares tumbled in Q1 due to CEO Elon Musk’s involvement with the Department of Government Efficiency (DOGE), which pulled his attention away from his companies and left a major overhang on their valuations.

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However, things started to rebound halfway through the year, and as the government started to phase out the $7,500 tax credit, demand spiked as consumers tried to take advantage of it.

Q3 deliveries were the highest in company history, and Tesla responded to the loss of the tax credit with the launch of the Model 3 and Model Y Standard.

Additionally, analysts have announced high expectations this week for the company on Wall Street as Robotaxi continues to be the focus. With autonomy within Tesla’s sights, things are moving in the direction of Robotaxi being a major catalyst for growth on the Street in the coming year.

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Tesla needs to come through on this one Robotaxi metric, analyst says

“We think the key focus from here will be how fast Tesla can scale driverless operations (including if Tesla’s approach to software/hardware allows it to scale significantly faster than competitors, as the company has argued), and on profitability.”

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Tesla needs to come through on this one Robotaxi metric, Mark Delaney of Goldman Sachs says.

Tesla is in the process of rolling out its Robotaxi platform to areas outside of Austin and the California Bay Area. It has plans to launch in five additional cities, including Houston, Dallas, Miami, Las Vegas, and Phoenix.

However, the company’s expansion is not what the focus needs to be, according to Delaney. It’s the speed of deployment.

The analyst said:

“We think the key focus from here will be how fast Tesla can scale driverless operations (including if Tesla’s approach to software/hardware allows it to scale significantly faster than competitors, as the company has argued), and on profitability.”

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Profitability will come as the Robotaxi fleet expands. Making that money will be dependent on when Tesla can initiate rides in more areas, giving more customers access to the program.

There are some additional things that the company needs to make happen ahead of the major Robotaxi expansion, one of those things is launching driverless rides in Austin, the first city in which it launched the program.

This week, Tesla started testing driverless Robotaxi rides in Austin, as two different Model Y units were spotted with no occupants, a huge step in the company’s plans for the ride-sharing platform.

Tesla Robotaxi goes driverless as Musk confirms Safety Monitor removal testing

CEO Elon Musk has been hoping to remove Safety Monitors from Robotaxis in Austin for several months, first mentioning the plan to have them out by the end of 2025 in September. He confirmed on Sunday that Tesla had officially removed vehicle occupants and started testing truly unsupervised rides.

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Although Safety Monitors in Austin have been sitting in the passenger’s seat, they have still had the ability to override things in case of an emergency. After all, the ultimate goal was safety and avoiding any accidents or injuries.

Goldman Sachs reiterated its ‘Neutral’ rating and its $400 price target. Delaney said, “Tesla is making progress with its autonomous technology,” and recent developments make it evident that this is true.

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Investor's Corner

Tesla gets bold Robotaxi prediction from Wall Street firm

Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.

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Credit: Tesla

Tesla (NASDAQ: TSLA) received a bold Robotaxi prediction from Morgan Stanley, which anticipates a dramatic increase in the size of the company’s autonomous ride-hailing suite in the coming years.

Last week, Andrew Percoco took over Tesla analysis for Morgan Stanley from Adam Jonas, who covered the stock for years. Percoco seems to be less optimistic and bullish on Tesla shares, while still being fair and balanced in his analysis.

Percoco dug into the Robotaxi fleet and its expansion in the coming years in his latest note, released on Tuesday. The firm expects Tesla to increase the Robotaxi fleet size to 1,000 vehicles in 2026. However, that’s small-scale compared to what they expect from Tesla in a decade.

Tesla expands Robotaxi app access once again, this time on a global scale

By 2035, Morgan Stanley believes there will be one million Robotaxis on the road across multiple cities, a major jump and a considerable fleet size. We assume this means the fleet of vehicles Tesla will operate internally, and not including passenger-owned vehicles that could be added through software updates.

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He also listed three specific catalysts that investors should pay attention to, as these will represent the company being on track to achieve its Robotaxi dreams:

  1. Opening Robotaxi to the public without a Safety Monitor. Timing is unclear, but it appears that Tesla is getting closer by the day.
  2. Improvement in safety metrics without the Safety Monitor. Tesla’s ability to improve its safety metrics as it scales miles driven without the Safety Monitor is imperative as it looks to scale in new states and cities in 2026.
  3. Cybercab start of production, targeted for April 2026. Tesla’s Cybercab is a purpose-built vehicle (no steering wheel or pedals, only two seats) that is expected to be produced through its state-of-the-art unboxed manufacturing process, offering further cost reductions and thus accelerating adoption over time.

Robotaxi stands to be one of Tesla’s most significant revenue contributors, especially as the company plans to continue expanding its ride-hailing service across the world in the coming years.

Its current deployment strategy is controlled and conservative to avoid any drastic and potentially program-ruining incidents.

So far, the program, which is active in Austin and the California Bay Area, has been widely successful.

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