Musk's tunneling venture could be worth $20B
What's the story
Elon Musk's tunneling venture, The Boring Company, is said to be in talks for a new funding round that could value it at around $20 billion, according to The Wall Street Journal reported the development on Friday, citing people familiar with the discussions. The company was last valued at $5.7 billion in 2022 after a $675 million fundraising exercise.
Business model
The Boring Company aims to revolutionize transportation
Founded by Musk, whose business interests include Tesla, SpaceX, and Neuralink, The Boring Company aims to develop tunneling technology and transport systems.
These would carry passenger pods through underground low-pressure tubes between cities.
The company has already built a network of tunnels under Las Vegas where Teslas shuttle customers to different stations.
Growth hurdles
The company's expansion plans and challenges
The Boring Company has announced plans to build tunnel networks under Nashville and Dubai.
It has also pitched projects in Baltimore, Chicago, and Los Angeles.
However, the company has faced some challenges along the way. Last year, Nevada regulators said The Boring Company violated environmental regulations nearly 800 times and tunnel workers have suffered serious injuries during construction work.