Musk’s Boring Co Raises $675 Million at a valuation of $5.6 Billion

Vy Capital and Sequoia Capital led a $675 million fundraising round for Elon Musk’s tunneling business Boring Co. According to a press release issued on Wednesday, the round values the firm at $5.675 billion. The round also included Valor Equity Partners, Founders Fund, 8VC, Craft Ventures, and DFJ Growth.

The Boring Company (TBC) was founded by Elon Musk to revolutionize transportation. Musk had previously raised funds by selling Boring Company hats and flamethrowers.

Boring Co. claims its main goal is to “solve traffic, enable rapid point-to-point transportation and transform cities” by creating transportation networks in deep underground tunnels.

In a blog post announcing the news about securing the Series C funding, the company reaffirmed its goals and achievements thus far, highlighting its “next generation” of Prufrock tunnel-boring equipment in particular (TBMs).

The post stated that the funds raised will be utilized to increase staffing across engineering, operations, and production in order to build and scale Loop projects such as Vegas Loop and others, as well as to accelerate Prufrock and future product research and development.

Boring Company inaugurated its first commercial tunnel project in Las Vegas in June 2021, employing human-driven Tesla vehicles to transport guests through the city’s Convention Center. The 1.7-mile (2.7-kilometer) tunnel decreases “a 45-minute cross-campus walk time to around 2 minutes” at the facility, according to The Boring Company.

Boring Co. has grown and changed from its inception in 2016, when its ambition was for long-haul transit across hundreds of miles. It now focuses on shorter travels within cities, with some places proving to be more difficult to work in than others. Even while the Vegas project has received praise, plans for developments in Chicago, Los Angeles, and a link between Washington and Baltimore have fallen through.

Brookfield, Lennar Corp., Tishman Speyer, and Dacra Development Corp. are among the real estate giants that have made strategic investments in the current funding round. This could signal that Boring Co. is attempting to incorporate its tunnels into new construction projects, as it has done with the two Las Vegas hotels.