Boring Company Raises $113 Million, $100 Million From Musk Himself

Boring

APR 18 2018 BY STEVEN LOVEDAY 15

Despite Model 3 production hell in Fremont and at the Tesla Gigafactory, CEO Elon Musk still finds time to put efforts and funding toward The Boring Company.

The Boring Company reportedly raised some $113 million for its tunnel-digging pursuits, along with the new plans to build some type of Hyperloop with multi-passenger “pods.”

Related: Flamethrower Sales Net Boring Company $3.5 Million And Counting

Musk’s interesting new company and related concept have sparked much skepticism from naysayers, but the facts that digging is happening in multiple locations and the plan continues to adapt to what seems to be something more feasible, are surely intriguing.

Although it will take a significant amount of time to finalize all of the boring, and the subsequent transportation system is far off, the company has already revealed working prototypes of the elevator and sleds.

According to the related Securities and Exchange Commission document, the recent funds were raised in equity and as part of a financing round with 31 investors. The Boring Company submitted a U.S. securities filing early in the week revealing the information.

This stock sale is the only one of its kind for The Boring Company reported to the SEC thus far. Prior to this, Musk has been using his Spaceballs education to raise money via “merchandising.” He started by selling $50,000 Boring Company baseball caps and then graduated to flamethrowers. In the end, the tunneling venture generated $10 million just on flamethrower sales alone.

Though the investors remain unnamed, the company disclosed that no outside investors or venture capitalists were involved. Instead, 90 percent of the financing came from Musk himself (~$100 million), while the rest came from early employees.

Source: Bloomberg

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15 Comments on "Boring Company Raises $113 Million, $100 Million From Musk Himself"

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Will

Seld funding this mini subway wow and sad

(⌐■_■) Trollnonymous

He did that when he first came on board with Tesla.
But sure that’s “sad” according to you………..lol

In the words of Red Forman…
https://imgflip.com/i/28mx3i

jelloslug

Putting his money where his mouth is. SAD.

ROFLOL

No, producing a horribly worded comment like that is sad. But also…ROFLOL!

Get Real

Yes, serial anti-Tesla WillTroll shows how he is anti-innovation and anti-Entrepreneur when it comes to Elon Musk.

Maybe he could do us all a favor and move to Cuba or North Korea where they don’t encourage entrepreneurs and innovators?

Will

Here we go, now you going to say i kill dogs. if looks like a duck and smells like a duck it is a duck. this is a mini subway that all it is. why there isn’t there more investors?

Get Real

How would I know if you kill dogs?

All I’m saying is that if you troll like a troll, you must be a (serial anti-Tesla) troll!

And the main point is that if Elon Musk wants to spend HIS MONEY on this project then so be it as he is the one assuming the risk.

Like many other potential innovations, I prefer that the Entrepreneur take the risks and of course potentially reap the rewards if it is successful which Musk has unquestionably been in his career.

Leptoquark

Cool, good to see it still alive. So far, no visible activity at the hyperloop tunnel site near the BW Parkway in Maryland, or the terminus in Washington DC.

Windbourne

it is amazing how many ppl just hate Musk for being successful. Everything that the man works on succeeds. And it is changing the world for the better.
And yet, so many here continue to rip on him.

I can only imagine that most of them are bought/paid for by the kock bros.

Pushmi-Pullyu

This is a pretty expensive hobby for Elon!

Elon says he wants to reduce the cost of boring tunnels by a factor of 5 or even 10. Good luck to him in achieving that goal! If the Boring Co. can actually do that, then I’ll happily admit to being wrong about it being just a hobby. But so far at least, I’ve seen no sign that the company is making any real attempt to reduce tunnel boring costs, nor any attempt to develop a tunnel boring machine which digs significantly faster, which Elon has said is the goal.

Will

WATCH OUT FOR REAL

Paul Smith

Will, isn’t there some place in Moscow where you can take English lessons?

SJC

A private sector subway could work, you need to have a viable business plan first.

Pushmi-Pullyu

To my surprise, Googling the subject, I find that there are indeed privately owned and profitable subway systems in one place in the world: Tokyo (see link below). So it’s not impossible to have a privately owned and profitable mass transit system.

What would be impossible is to try to apply the business model of a high-capacity urban mass transit system to the sort of low-volume, exclusive, VIP-only system which is proposed in the Boring Co. concept. The volume of paying passengers would be much too low to support the cost of construction and maintenance. It would be like trying to run an ocean liner back in the days before air travel was common, and to do that with only first-class cabins, with no second-class or steerage passengers.

https://www.citylab.com/transportation/2011/10/why-tokyos-privately-owned-rail-systems-work-so-well/389/

More on economic realities of mass transit systems and why a very rich man’s fantasy transportation system — like the Boring Co.’s concept — cannot possibly ever work in the real world:

http://humantransit.org/2017/07/the-dangers-of-elite-projection.html

Will

charge $50 one way $ 80 RT. with executive model s and x shuttling you to your final destination