← HomeAll journeys    About    Share your journey
← United StatesThe Exclusive FeatureShare your journey
Startup Talk
The people who built United States's companies · November 2026

Tunneling and underground transport infrastructure

The Boring Company

Selling Las Vegas on a short, cheap, single-lane tunnel shuttle rather than a metro, and building its own machine (Prufrock) that digs and lines the tunnel at once.

Elon Musk
Elon Musk. Photograph: Gage Skidmore, CC BY-SA 4.0, via Wikimedia Commons

On 17 December 2016, stuck in Los Angeles traffic, Elon Musk sent a short run of tweets. Traffic, he wrote, was driving him nuts. He would build a tunnel-boring machine and just start digging. Then, in the last of the four: I am actually going to do this.

What almost nobody connects to that moment is where the man came from. Musk grew up in Pretoria, South Africa, in a family that was wealthy during his youth. After his parents divorced in 1979 he chose, at about nine, to live with his father, and he has said he later regretted it. At a boys' wilderness school he described as a paramilitary Lord of the Flies, he was, by his account, thrown down concrete steps and beaten badly enough to be hospitalised. He has said his father berated him after he came home. His father denies it. Nothing ties that boy to a tunnel company, but it is the person behind the tweets.

What almost nobody connects to that moment is where the man came from.

He arrived in Canada alone in June 1989, stayed with a second cousin in Saskatchewan and worked odd jobs, including on a farm and at a lumber mill. Then Queen's University, then the University of Pennsylvania. When he co-founded Zip2 in 1995 he coded at night, seven days a week, in his own words.

The tunnel idea came with a name within an hour, and the company was registered in January 2017. It was born inside SpaceX and started digging where it did for a plain reason: SpaceX owned the land, so no permits were needed. The first test trench was 30 feet wide, 50 feet long and 15 feet deep. Initial funding of about $113 million came mostly from Musk.

The real fight came later. Los Angeles never let the idea in, and the plan was dropped. A graveyard followed: Chicago, Washington to Baltimore, San Jose, Fort Lauderdale, Miami. In 2018 the company sold about 20,000 blowtorches branded as flamethrowers and 50,000 hats to raise money from fans. Then Las Vegas wanted a shuttle rather than a subway; the contract came in May 2019 and the Convention Center loop opened in 2021.

Critics never stopped questioning cost, speed and safety. In 2022 Texas regulators cited the company for five environmental violations. A $675 million round that April valued it at about $5.7 billion. A $3 billion round at $23 billion was reported for September 2026, but that figure is unconfirmed.

The lesson is small and practical. A man who learned young that nobody was coming to help started by digging on land he already owned, where no one could say no. What kept it alive afterwards was one customer who wanted the small version of the dream.

The Chronology year by year

  1. 2016
    • Musk announces idea
  2. 2017
    • registered
  3. 2018
    • spun out from SpaceX, flamethrower sales, 1.14-mile Hawthorne test tunnel shown Dec 2018
  4. 2019
    • Las Vegas contract
  5. 2021
    • Vegas Loop opens
  6. 2022
    • $5.675B valuation
  7. 2026
    • Nashville tunnelling begins, Dubai and Orlando deals, Sep 2026 $23B valuation

The Money Trail how it was funded

  1. Initial about $113M mostly from Musk plus 2018 merchandise sales
  2. Jul 2019 about $120M in stock to venture firms
  3. Apr 2022 Series C $675M at about $5.675B (Vy Capital, Sequoia)
  4. Sep 2026 Series D $3B at $23B (led by UAE and affiliates, per Wikipedia, which carries reliability tags)

Principal backers: Elon Musk, Vy Capital, Sequoia Capital, UAE-linked investors (2026)

The Close Calls what nearly broke it

  • Years of environmental review and local opposition (Los Angeles plan dropped)
  • 2022 Texas regulators cited five environmental violations; many cancelled projects (Chicago, DC-Baltimore, San Jose, Fort Lauderdale, Miami); critics question cost, speed and safety, such as single-lane tunnels

In Their Own Words from the record

Spotted something wrong? Send a correction.

Startup Talk · Preview edition · Figures are from public sources and may be out of date