- The Boring Company is an American infrastructure and tunnel construction services company founded by Elon Musk in 2016.
- The Boring Company makes money by providing tunnel infrastructure and boring machine services. The company’s flagship project to date is the LVCC Loop in Las Vegas, with future expansion plans already approved.
- While The Boring Company looks to secure deals with new partners, the company makes money through investment funding, merchandise sales, and funding from Musk himself.
The Boring Company Origin Story
The Boring Company is an American infrastructure and tunnel construction services company founded by Elon Musk on December 17, 2016.
The company came into being soon after Musk made a now-infamous tweet while stuck in heavy congestion in Los Angeles: “Traffic is driving me nuts. Am going to build a tunnel boring machine and just start digging…”
Though many assumed flying cars would ease the traffic congestion of the future, Musk argued tunnels were a better option because they were weatherproof, out of sight, and minimized the amount of valuable land that would need to be sacrificed for transport corridors.
To bring Musk’s vision to life, The Boring Company developed Loop – a zero-emission, underground public transport system where passengers are transported to their destination without intermediate stops. A three-station, 1.7-mile prototype was constructed in Las Vegas in 2019 after Musk acquired a tunnel-boring machine. The prototype, dubbed the Las Vegas Convention Centre (LVCC) Loop, was constructed in just twelve months and reduced a 45-minute walk to approximately 2 minutes. At the time of writing, there are also plans to connect the Las Vegas Strip with McCarran International Airport and Allegiant Stadium.
That same year, The Boring Company began assembling its proprietary boring machine named Prufrock. The machine, which has the same diameter as a SpaceX Dragon spacecraft, is six times faster than conventional tunnel boring machines. A second Prufrock came online in August 2021.
The Boring Company revenue generation
The Boring Company makes money by providing tunnel infrastructure and boring machine services.
The company is in its infancy, however, having only been spun off from SpaceX in 2018. To some extent, there are also concerns from industry experts regarding the commercial viability of Musk’s ambitions.
Nevertheless, The Boring Company recently broke ground on a project connecting two Las Vegas Strip hotels to the existing LVCC Loop. Longer-term, the aforementioned tunnel between the stadium and the airport has also reached the approval stage.
Several very preliminary discussions have also taken place with transport authorities in Australia, Europe, and China for potential projects there.
While Musk works to sell the benefits of his technology to interested parties, the billionaire entrepreneur is also responsible for keeping the lights on at The Boring Company.
In 2018, Musk committed $113 million of his own money to fund operations. The following year, he secured the first external investment in the company after selling $120 million in stock to multiple venture capital firms.
Musk also has made money for the company by selling a range of merchandise, including hats and fire extinguishers. He also sold a branded flamethrower, with twenty thousand sold at $500 netting the company $10 million.
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