Elon Musk’s new startup The Boring Company has raised $113 million in capital that will be used to fund its vision of future public transport in urban areas. SEC documents seen by the CNBC confirm this. The Boring Company wants to transform public transport by creating underground tunnels. The goal is to use the tunnels to develop an integrated urban transport system. This is a vision that Elon Musk has had for quite some time now. Tesla’s CEO believes that this system will allow people to move in major cities faster and more efficiently.
Last month, Musk announced that the company will adjust its strategy in order to prioritize pedestrian traffic over vehicle traffic. One of the biggest challenges though would be to secure permits for the project. The company will have to engage with local governments for contracts. Musk says that initially the Boring Company will be looking to alleviate the traffic problem in Los Angeles. However, it looks like the company has also been engaging with other cities in the US.
However, the SEC documents don’t provide more details on the raised capital or the names behind it. We only know that there are at least 31 investors who participated in the equity. The Boring Company has come under fire from the press due to its somewhat unconventional way of raising money. The company has sold branded hats as part of its strategy to raise revenue, and flamethrowers too recently. Musk said in a tweet that he wanted to sell flamethrowers just because it was “cool.” Pre-orders for the flamethrowers have already generated millions in sales. Musk also sold 50,000 Boring Company hats.
Musk’s vision of future public transportation in big cities is simple. He wants to create a zero-emission, fast, and modern alternative transport system. The master plan would leverage on a network of tunnels to provide mass transit and paths for personal vehicles. The tunnel system has been dubbed the “Urban Loop.” Musk says that the loop will have thousands of stations at different points. This will allow people to disembark close to their destination.
The first tunnel project is expected to start in Los Angeles. However, the company is still struggling with the high costs, tunnel sizes and the amount of time it will take to complete the project. Building a network of tunnels across a big city like Los Angeles is not easy. It requires elaborate planning and a lot of resources. But there’s already some progress. The first tunnel expected to run from the Los Angeles International Airport to Culver City is partially complete.
The local authorities in Los Angeles have expressed their concerns over the tunnels. The Culver City Council, in particular, has opposed the first tunnel and this is one of the political issues that The Boring Company will have to deal with. However, so far Musk’s startup has raised $113 million. It’s hardly enough to get the job done but it’s the right step forward.