Elon Musk's Boring Company Raises $675 Million at $5.675 Billion Valuation

April 21, 2022 6:56 AM EDT

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The Boring Company, founded by Tesla (NASDAQ: TSLA) CEO Elon Musk, secured $675 million in a Series C funding round, bringing the infrastructure and tunnel construction company’s valuation to $5.675 billion.

The Boring Company is on a mission to eliminate traffic by building a thousand miles of tunnels. The company intends to invest fresh funding in scaling Loop, a unique system designed to shuttle passengers through fast tunnels.

The Boring Company initially said its technology will be capable of shuttling passengers at up to 150 mph, however, the startup is still far from reaching this speed as it has been able to hit just 50 mph in its test rides.

The startup company was recently authorized to build a 29-mile tunnel network that connects 51 stations under Las Vegas, characterizing it as “the largest subsurface transportation project,” claiming it will be able to transport 57,000 passengers per hour one day.

The Boring Company still has a long way to go before building a Hyperloop - a transportation system envisioned by Musk that involves a number of underground tubes through which passenger pods would move at a whopping 760 mph.

There are a number of companies developing the technology to realize the Hyperloop.

The Boring Company currently remains focused on the further development of the Loop project and Prufrock - machines designed by the startup that are able to dig tunnels in just a few weeks.

Elon Musk’s startup said it plans to “significantly increase hiring across engineering, operations, and production” to complete its Vegas Loop project, as well as for further research and development.

By Senad Karaahmetovic

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Tesla, Senad Karaahmetovic