The Boring Company aims to solve today’s transportation problems, and it is Musk’s urban transportation dream. Can you buy The Boring Company stock?

What is The Boring Company?

The announcement of The Boring Company started with a tweet from Elon Musk in 2016. Musk, fed up with LA traffic, said he would build a tunnel boring machine and start digging. His rationale was that there are miles and miles of unused earth below roadways, which could be leveraged to solve traffic problems.

Musk is a talented entrepreneur, no doubt, and has gained a fair bit of notoriety on Twitter. The Boring Company proposes to create a high-speed system to bypass ground-level congestion, basically, an underground tunnel that’s supposed to get you from point A to point B.

The Boring Company, founded by Elon Musk, specializes in infrastructure and tunnel construction. It also aims to reduce tunneling costs by making smaller tunnels and creating its own high-power boring machines. In May 2017, Elon Musk published a tweet about the tunnel boring machine he’d invented. Soon after, he added that The Boring Company would use the technology to build an underground tunnel.

The Boring Company plans to build a network of tunnels that would facilitate the transportation of people in underground tunnels. At the launch, the company asked people to send in their ideas, and it was using a blog as an outreach. In August 2017, The Boring Company released a concept video.

How will The Boring Company work?

Musk’s vision for The Boring Company is simple. He envisions customers buying a parking spot for The Boring Company, then riding a Tesla, a high-speed tunnel transport car, and having a wide range of transportation options. Tesla’s Model X will also be the first vehicle in the system. 

Elon Musk’s Vision

Musk’s dream is quite a stretch. But the company’s aspirations to fix urban traffic problems and replace the auto industry are pretty feasible. The Boring Company is aiming to build the Hyperloop and a tunnel-based high-speed transport system.

Hyperloop is a high-speed train travel concept. Hyperloop One, the leader in developing a Hyperloop transportation system, had launched the Hyperloop Pod Competition allowing university students to test their designs on a Hyperloop track at their home campus.

The top team won a trip to Hyperloop One to demonstrate their pods in an actual Hyperloop track. The contest allowed students to set their Hyperloop pod to 550 mph and ultimately reach 760 mph.

Can You Invest In The Boring Company?

Not really. Boring Company is more of a concept right now, and like all new ideas, it needs a little boost from investors to grow. But it is a fantastic concept and may solve many problems in the urban transportation scene.

Could it be a market opportunity for long-term investors in the future? Maybe. It’s not like the company’s operations will cost anything, and there is no real way to measure its financial status. That said, investors can’t buy stock of The Boring Company right now. The Boring Company was formed as a subsidiary of SpaceX, and it became a separate and fully independent company in 2018.

Tesla revealed in an SEC filing that it works with his businesses SpaceX and The Boring Company. SpaceX paid Tesla about $5 million for various services and purchases of car components in 2020 and about $2 million worth of components in the first quarter of 2021. It’s fair to say that Musk and the SEC haven’t exactly been friends. 

The Boring Company Projects

The Boring Company opened its first completed underground test tunnel section in Hawthorne, California, in December 2018. When the company completed the tunnel, its valuation shot up to $1.6 billion. 

The Las Vegas Convention Center Loop is The Boring Co.’s first completed commercial project. The company has constructed twin .8-mile tunnels that will initially use chauffeured Tesla vehicles to help event visitors move around the convention center campus. At the opening of the tunnel, a few people were able to hitch a ride in Tesla’s electric sedan at a speed of 35 mph, a far cry from the promised 150 mph speeds.

The Boring Company Profitability

The Boring Company is seeking to fund its activities through a concept called “congestion pricing.” This is where city governments will pass laws where residents have to pay a fee to use certain roads. Such is the case in London, which charges £10.60 (approximately $13.60) to drive into central London during peak traffic times.

Just imagine what Musk could do with a fraction of London’s traffic, and it’s easy to see the impact this would have on The Boring Company’s profits. Congestion pricing in London is now considered a success, which shows that Musk can make the wheels of business turn with ease. But as brilliant as Musk is, we have to remember that he is a man with little experience in the field of transportation, which is, of course, a capital-intensive business.

Musk has said the tunnel network would be an alternative to the freeway, and the idea would “open up the possibility of a new city being formed in the middle of LA.” Is It Risky? Investing in The Boring Company stock is definitely risky. We don’t have access to the financial statements of The Boring Company, so we can’t gauge profitability yet. 

Can you buy The Boring Company Stock?

No, The Boring Company is privately owned, with Elon Musk being the primary shareholder, owning a majority of the equity. Early employees of SpaceX and venture capital firms, including Vy Capital, Craft Ventures, 8VC, Future Ventures, and Gigafund, own the rest. If The Boring Company becomes public, you can then invest in The Boring Company Stock. Meanwhile, here are some companies to consider investing in

You can buy shares online by using any of the following brokers

Stock BrokerAccount MinimumCommissionsLearn More
$0$0Visit E*Trade
TDA$0$0Visit TD Ameritrade
Fidelity$0$0Visit Fidelity
RobinHood$0$0Visit Robinhood
$0$0Visit Webull

The Boring Company Stock Price

The Boring Company is privately owned, so The Boring Company stock is not listed on the exchange and it doesn’t have a stock price. 

Is Investing in The Boring Company Risky?

The Boring Company may have a rather exciting idea for the future of transport. While this may sound exciting for a commuter, investing in The Boring Company stock may not be the most lucrative investment opportunity. If we look at the other businesses and sectors Musk is involved with, investors would be making quite a risky investment in The Boring Company.

With a market cap of $2 billion, The Boring Company is considerably less valuable than most of Musk’s other ventures. The Boring Company may have a way to get around local governments in the United States and the world.

Final Thoughts

The Boring Company has many challenges it has to face. The tunnels are exorbitantly expensive, costing $1 billion per mile to build, cost $1 billion per mile. If the company wants to make its mission of solving traffic problems a reality, it would need to bring this down to at least a tenth of the current costs.

Although traveling underground in a Model 3 Tesla is not exactly the future of transportation, other than helping Musk sell more Telsas, let’s wait and see if there will be more remarkable features in future.   

Categories: Investing

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