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Tesla’s CEO Announced The Tunnel Launch

The launch of The Boring Company’s test tunnel near Los Angeles would involve more than just a hole in the ground, according to the Tesla’s $TSLA CEO Elon Musk.
In October, Musk tweeted that The Boring Company’s first tunnel would be ready to use on December 10, but it wasn’t clear that transport cars and “ground to car” elevators would be also presented.

 

“Boring Company product launch on Dec 18. More than a tunnel opening. Will include modded but fully road legal autonomous transport cars & ground to tunnel car elevators,” Musk tweeted.

 

The tunnel revealed at the December 18 event will be about two-mile-length, from SpaceX headquarters in the Los Angeles suburb of Hawthorne.

 

Unfortunately, a small delay is not the only issue that company faced. In November local groups sued the city of Los Angeles for exempting a Boring Company tunnel project from environmental regulations. The Boring Company agreed to pause the project and change its plans for the tunnel, which would have consisted of a second 2-mile road under western Los Angeles.

 

At the same time, part of SpaceX investors, including its largest outside backer, Peter Thiel’s Founders Fund, is worried about CEO Elon Musk’s other projects, especially after their capital was used for Elon’s latest pet project. The Boring Company’s first tunnel also has been funded by money intended for the rocket venture — not tunnels — sources told The Wall Street Journal.

According to The Journal, about 6% of The Boring Company’s equity was given to SpaceX after some investors shown their disappointment, but the SpaceX board never voted to put this money in the first place.

Elon Musk’s tunnel-digging venture, the Boring Co., is the latest to be drawn into the billionaire entrepreneur’s controversial tradition of spreading overlapping resources across his growing technology empire.


The investors keep asking SpaceX about why their investments into a company which suppose to launch satellites and carry humans to Mars were instead partly used to start a separate company that principally benefited Musk. When the Boring Co. was earlier this year spun into its own firm, more than 90% of the equity went to Musk and the rest to early employees, the company has said.

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