The Boring Company, Elon Musk’s tunneling startup, has raised $3 billion in a Series D round, valuing the firm at $23 billion. The deal comes amid surging investor interest in Musk’s ventures following SpaceX’s record IPO, which raised $86 billion in June.
Founded in 2016 after Musk vented frustration over Los Angeles traffic, The Boring Company initially envisioned futuristic hyperloop systems.
Investor Demands Go Beyond Cash Contributions
While projects in LA, Washington, DC, and Chicago were shelved, the company now focuses on the Vegas Loop, a Tesla‑shuttle transit system beneath the Las Vegas Convention Center. Plans are underway to expand the loop to 68 miles, with approvals for similar systems in Nashville and Dubai.
The United Arab Emirates, the lead investor in this round, has agreed to fund over 150km of tunnels. Other backers include Sequoia Capital, A16z, and Baron Capital.
Musk’s tunneling firm has also supported his other companies, building a “Cybertunnel” at Tesla’s Texas gigafactory.
Interestingly, investors were asked to contribute more than money. Reports suggest they must assist with recruitment or business deals to participate, a requirement Musk appeared to confirm on X.
