It seems like the selling flamethrowers wasn’t enough for Elon Musk to keep the Boring Company going. The billionaire entrepreneur has resorted to the old-fashioned way of finding investors to raise capital for the tunneling company.
Luckily Musk is well versed at how to get money and seems to have managed to raise around $113 million from 31 unnamed investors. Musk filed the funding with the Securities and Exchange Commission on Monday.
Musk said to have donated 90% of new funding
The Boring Company said that a large part of the fundraising was provided by Musk while other funds come from early employees of the fledgling company. No venture capitalists seem to have been involved in the funding round. It isn’t clear how the money will be spent on the company but it is clear that Musk is determined to fulfill his dream of creating a tunneling business that is fast, efficient and cheap.
Boring Company to radically lower tunneling costs
Traditional tunneling is ridiculously expensive, the machines that do it, the sheer workforce as well as the safety requirements mean that costs add up quickly. The Boring Company say they will reduce the cost of underground tunneling by a factor of ten or more.
One way they plan on doing that is to build smaller tunnels and use elevators to get people up and down to them rather than other expensive types of infrastructure. The initial use of these tunnels was to transport cars from city to city to avoid traffic congestion and save time.
Loop will prioritize people
Musk rethought this vision when he tweeted. “Adjusting The Boring Company plan: all tunnels & Hyperloop will prioritize pedestrians & cyclists over cars.” A video on the Boring Companys website shows passengers stepping into a clear pod that is lowered into the ground then moves underground at high speed.
Adjusting The Boring Company plan: all tunnels & Hyperloop will prioritize pedestrians & cyclists over cars— Elon Musk (@elonmusk) March 9, 2018
Musk calls the system The Loop and has laid out plans for the first segment to be installed on the East Coast of the United States, connecting Washington D.C. to downtown Baltimore. “This transportation system would create a significant public benefit due to decreased commute times, decreased urban congestion, decreased public transportation trip times, decreased transportation costs/fares, and decreased greenhouse gas emissions,” the website says.
System will cost same as bus ticket
The system carries passengers on autonomous electric skates traveling at 125-150 miles per hour. Each skate will carry between 8 and 16 passengers or a single passenger vehicle. The company has also said that the ticket on the system will be comparable to current public transport prices and that bikes and people will take priority over cars.