Musk's The Boring Company in Talks to Raise $4 Billion at $20 Billion Valuation

Elon Musk's tunnel-digging company, The Boring Company, is in talks to raise $4 billion in a funding round targeting a valuation of $20 billion. If completed, the round would mark a significant increase from the company's $5.7 billion valuation in 2022. In its Series C round that year, the company raised $675 million from investors including Wei Capital, Sequoia Capital, and Founders Fund, at a valuation of approximately $5.7 billion.

Founded in 2016 and spun off from SpaceX in 2018, The Boring Company was created to address surface traffic congestion through underground tunnels. It currently operates a transit system in Las Vegas that combines tunnels and surface roads, using Tesla vehicles to shuttle passengers between stations. The Las Vegas Loop project surpassed 2 million passenger trips in May 2024.

In 2025, the company was fined $242,800 for nearly 800 environmental violations and experienced serious worker crush injuries, leading to a temporary halt in tunnel expansion plans. These incidents have hindered the company's business growth.

The Boring Company has announced plans to build tunnel networks in Nashville, Tennessee, and Dubai, United Arab Emirates. It has also proposed projects in Baltimore, Chicago, and Los Angeles.