The Boring Co., Elon Musk’s industrial experiment to create high-speed underground transportation systems in dense urban regions, has apparently raised nearly $113 million to get operations under way.
The company sold equity worth $112.52 million on April 6, according to an SEC filing. It listed Jared Birchall, president of Musk’s Neuralink startup, and SpaceX Director Steve Davis, as people “related” to the company. It appears that billionaire Musk, who also leads Tesla and SpaceX, likely put in more than $100 million.
“Over 90% of this funding round came from Elon, with the rest from early employees,” the Boring Company said in a statement, adding that no outside investors were involved. The fundraising news was reported earlier by Axios.com.
Musk has promoted his new operation for the past year, and it’s aggressively pursuing projects in Los Angeles, Chicago and between New York and Washington. An initial tunnel in Hawthorne, the Los Angeles suburb where both it and SpaceX are headquartered, is already being built and permits are being sought to expand that project.
The company’s intention is to build tunnels with custom-designed excavation machines for Hyperloops, Musk’s long-envisioned vacuum tube train idea to ferry passengers between cities at speeds in excess of 600 miles an hour. The tunnels could also be designed for smaller “Loops,” high-speed transportation pods on autonomous “electric skates” traveling at up to 150 miles an hour, according to Boring Co.’s website. The pods could hold up to 16 passengers as a type of mass-transit system or transport individual vehicles beneath city streets.
Although it hasn’t yet proven that it can deliver affordable, underground rapid transportation services, the Boring Co. already has two early successes. It raised hundreds of thousands of dollars selling baseball caps with its logo to fans in 2017, and at least $10 million selling company-themed flamethrowers early this year. In March Musk tweeted out plans to next sell Lego-style building brick toys.
More Info: www.forbes.com
Categories: Money Matters