Next Investors logo grey

The Boring Company: Elon Musk’s ‘side project’

Published 09-NOV-2018 18:00 P.M.

|

3 minute read

Hey! Looks like you have stumbled on the section of our website where we have archived articles from our old business model.

In 2019 the original founding team returned to run Next Investors, we changed our business model to only write about stocks we carefully research and are invested in for the long term.

The below articles were written under our previous business model. We have kept these articles online here for your reference.

Our new mission is to build a high performing ASX micro cap investment portfolio and share our research, analysis and investment strategy with our readers.


Click Here to View Latest Articles

It’s been a challenging year for Elon Musk, but things may be looking up.

By now most of you are familiar with SpaceX, but have you heard of its subsidiary: The Boring Company?

On November 3, Musk tweeted a short update and video from The Boring Company’s Hawthorne sight, claiming its test track was “disturbingly long.”

The SpaceX brainchild is making serious inroads into its first project, confirming that it’s on track (pun intended) for its December 10 VIP launch. The inaugural route begins underneath SpaceX HQ in Hawthorne, CA, and runs for over 3km underground. The test tunnel will have a top speed of 249kph, with Musk indicating that future tunnels will feature top speeds of up to 1,223kph.

1,223 kilometres per hour.

About The Boring Company

Founded in late 2016, the billionaire created the infrastructure and tunnel construction firm with one mission in mind: fix Los Angeles’ ‘soul-destroying’ traffic.

According to the TomTom Traffic Index, Los Angeles is one of the most gridlocked cities in the world. The GPS manufacturer has tracked LA user data since 2008 and the results are nothing short of egregious.

Commuters will travel on average an extra 44 minutes per day due to congestion (when assessed against standard free flow traffic commute times) which equates to a further 170 hours of travel per year.

Next Investors Image

To address this crippling phenomenon, The Boring Company has set out to deploy a not so boring twist on the humble tunnel:

“To solve the problem of soul-destroying traffic, roads must go 3D, which means either flying cars or tunnels. Unlike flying cars, tunnels are weatherproof, out of sight and won’t fall on your head. A large network of tunnels many levels deep would fix congestion in any city, no matter how large it grew (just keep adding levels).

“The key to making this work is increasing tunnelling speed and dropping costs by a factor of 10 or more – this is the goal of The Boring Company. Fast to dig, low cost tunnels would also make Hyperloop adoption viable and enable rapid transit across densely populated regions, enabling travel from New York to Washington DC in less than 30 minutes.”

New York to Washington DC in half an hour? I don’t think so. I’ll have what Elon’s having.

I’m sorry. I couldn’t help it.

While The Boring Company’s grandeurs vision does read like something Musk penned after his interview with Joe Rogan, it’s the kind of critical thinking that’s needed to streamline urbanisation.

Ultimately, his end vision is to build tunnel entry points into the footprint of every home, facilitating rapid fire commuting for any household:

Next Investors Image

Now I know what you’re thinking: Justin, this sounds cool – but how is this concept any different to the conventional subway and metro systems around the world?

I’m glad you asked random reader.

Hyperloop – get hyped

The Boring Company’s tunnels will utilise cutting edge Hyperloop technology.

I covered Hyperloop some time ago, but the following video does a nice job of bringing you up to speed:

The innovative tech has garnered input from over 800 of the world’s brightest engineers, technicians and scientists spanning 38 countries.

Considering that the total area covered by the world’s cities will triple over the next 40 years, a radical overhaul of how we get from A to B is needed ASAP.

For this reason alone, the world will be watching on December 10.

tags

START UPS


General Information Only

S3 Consortium Pty Ltd (S3, ‘we’, ‘us’, ‘our’) (CAR No. 433913) is a corporate authorised representative of LeMessurier Securities Pty Ltd (AFSL No. 296877). The information contained in this article is general information and is for informational purposes only. Any advice is general advice only. Any advice contained in this article does not constitute personal advice and S3 has not taken into consideration your personal objectives, financial situation or needs. Please seek your own independent professional advice before making any financial investment decision. Those persons acting upon information contained in this article do so entirely at their own risk.

Conflicts of Interest Notice

S3 and its associated entities may hold investments in companies featured in its articles, including through being paid in the securities of the companies we provide commentary on. We disclose the securities held in relation to a particular company that we provide commentary on. Refer to our Disclosure Policy for information on our self-imposed trading blackouts, hold conditions and de-risking (sell conditions) which seek to mitigate against any potential conflicts of interest.

Publication Notice and Disclaimer

The information contained in this article is current as at the publication date. At the time of publishing, the information contained in this article is based on sources which are available in the public domain that we consider to be reliable, and our own analysis of those sources. The views of the author may not reflect the views of the AFSL holder. Any decision by you to purchase securities in the companies featured in this article should be done so after you have sought your own independent professional advice regarding this information and made your own inquiries as to the validity of any information in this article.

Any forward-looking statements contained in this article are not guarantees or predictions of future performance, and involve known and unknown risks, uncertainties and other factors, many of which are beyond our control, and which may cause actual results or performance of companies featured to differ materially from those expressed in the statements contained in this article. S3 cannot and does not give any assurance that the results or performance expressed or implied by any forward-looking statements contained in this article will actually occur and readers are cautioned not to put undue reliance on forward-looking statements.

This article may include references to our past investing performance. Past performance is not a reliable indicator of our future investing performance.