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The Boring Company: Elon Musk's Tunneling Venture and Las Vegas Loop

Born from a frustrated tweet about Los Angeles traffic, Musk's tunneling company now runs a growing network of car tunnels beneath the Las Vegas Strip.

3 min read8 references
01

At a Glance

The Boring Company is a tunnel-construction company Elon Musk founded in December 2016 after publicly venting frustration about Los Angeles traffic, proposing underground tunnels as a way to add road capacity beneath already-built cities. The company built a demonstration tunnel in Hawthorne, California, then found its first commercial success with the Las Vegas Convention Center Loop, later expanded into the broader Vegas Loop, which carries passengers between Strip resorts, the airport and downtown in human-driven Tesla vehicles. By 2026, the company had raised billions of dollars at a multibillion-dollar valuation and was tunneling in several cities simultaneously, while facing questions about how its 'Loop' car-tunnel model compares to higher-capacity mass transit.

02

Founding: A Tweet About Traffic

Musk founded The Boring Company in December 2016, shortly after publicly complaining on Twitter about being stuck in Los Angeles traffic, proposing that a network of tunnels could add transportation capacity beneath cities without the disruption and cost of elevated infrastructure.[1][2] He framed the venture as tackling what he called the "soul-crushing" burden of urban traffic, arguing that if tunnels could be dug fast and cheaply enough — a goal the company has pursued partly by building its own tunnel boring machines — undergrounding could scale in ways surface construction cannot.[2][3]

A tunnel boring machine at The Boring Company
The Boring Company builds its own tunnel boring machines to cut construction costs.Image: Steve Jurvetson · CC BY 2.0
03

The Hawthorne Test Tunnel

The company's first tunnel, a roughly 1.14-mile test tunnel beneath Hawthorne, California, opened for a public demonstration in December 2018.[2][3] The demo showed cars being lowered onto a platform, transported through the tunnel at speeds up to about 150 miles per hour, and lifted back to street level — establishing the basic "Loop" concept of moving individual vehicles through tunnels rather than building rail-based mass transit.[3][4]

04

Las Vegas Convention Center Loop and Vegas Loop Expansion

The Boring Company's first commercial project was the Las Vegas Convention Center Loop, a roughly 1.7-mile system connecting the convention center's exhibition halls with human-driven Tesla vehicles, which remains the company's only fully publicly accessible tunnel system.[4][5] Clark County subsequently approved permits for a much larger "Vegas Loop" network extending to the Las Vegas Strip, Harry Reid International Airport, Allegiant Stadium and downtown Las Vegas, with the station count approved by the county climbing past 120 by mid-2026.[5][6]

The company has said it plans to double the number of open Vegas Loop stations by the end of 2026 as tunneling continues across multiple segments of the network simultaneously.[6]

05

Expansion, Funding, and Other Cities

Beyond Las Vegas, The Boring Company has pursued or begun projects including a Nashville "Music City Loop," tunneling activity reported in multiple U.S. cities at once, and international interest including a proposed project in Dubai.[6][7] In 2026 the company raised a large funding round — reported at roughly $3 billion at a $23 billion valuation, led by investors including a UAE-based group — reflecting substantial investor interest despite the company not yet having built a large-scale mass-transit-capacity network.[7][8]

Transportation planners and critics have questioned whether Loop's car-based, one-vehicle-at-a-time tunnel model can carry as many passengers per hour as light rail or subway systems of comparable tunnel size, a debate that has followed the company since its earliest proposals.[3][6]

06

References

  1. 1Wikipedia, Hawthorne test tunnel, accessed on September 26, 2026.
  2. 2Built In, With The Boring Company, Elon Musk Is Taking City Traffic On, accessed on September 26, 2026.
  3. 3NBC News, Elon Musk unveils his test car tunnel as a fix for traffic in Los Angeles, accessed on September 26, 2026.
  4. 4The Points Guy, Elon Musk just opened The Boring Company's first tunnel in LA, accessed on September 26, 2026.
  5. 5Fortune, Trouble at the Boring Co: Shelved projects and slow progress are dulling Musk's tunneling dreams, accessed on September 26, 2026.
  6. 6All Things Elon, Clark County Clears 19 More Vegas Loop Stations, Total Hits 123, accessed on September 26, 2026.
  7. 7All Things Elon, Boring Company Runs Tunnels in Three Cities as Dubai Nears, accessed on September 26, 2026.
  8. 8All Things Elon, Boring Company Raises $3B at $23B Valuation, Led by UAE, accessed on September 26, 2026.
07

Frequently Asked Questions

When was The Boring Company founded?

+

In December 2016, shortly after Elon Musk publicly complained about Los Angeles traffic and proposed a network of city tunnels as a solution.

What is the Vegas Loop?

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A network of tunnels in Las Vegas that transports passengers in human-driven Tesla vehicles between Strip resorts, the convention center, the airport and downtown, expanded from the original Las Vegas Convention Center Loop.

How fast can vehicles travel through Boring Company tunnels?

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The company's Hawthorne demonstration tunnel showed vehicles reaching speeds up to about 150 miles per hour, though Vegas Loop's human-driven Tesla vehicles operate at lower speeds within the tunnels.

How much has The Boring Company raised?

+

The company raised roughly $3 billion in a 2026 funding round at a reported $23 billion valuation, led by investors including a UAE-based group.

Is The Boring Company's tunnel model the same as a subway?

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No. Loop moves individual passenger vehicles through tunnels rather than high-capacity trains, and transportation planners have debated whether it can carry as many passengers per hour as light rail or subway systems.