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EsBoring Co. in Talks to Raise $4B at $20B Valuation
Elon Musk’s Boring Company is in talks to raise about $4 billion at a valuation near $20 billion, according to people familiar with the discussions; the deal is not final and terms could still change.
Elon Musk’s Boring Company is in talks to raise about $4 billion from investors at a valuation near $20 billion, according to people familiar with the discussions. The financing has not closed, and the amount and terms may change.
A deal at that level would mark a sharp increase from the roughly $5.7 billion valuation assigned after a 2022 round that raised $675 million from Vy Capital, Sequoia Capital and Founders Fund. A new $4 billion raise would sit among the larger recent private technology financings.
Boring Company, spun out of SpaceX in 2018, develops tunneling machines intended to cut the cost and time of underground construction. Its most developed operating system is a loop under the Las Vegas Strip, where Tesla vehicles carry passengers to and from the Las Vegas Convention Center.
Earlier transit concepts in Baltimore, Chicago and Los Angeles did not progress beyond planning. The company is building an underground loop in Nashville as a privately financed project.
In February, Boring Company outlined a proposal in Dubai. The initial four-mile phase is estimated at about $154 million and one year to complete. A planned expansion to 14 miles is projected to cost about $545 million over three years. Financing details for the Dubai plan have not been disclosed.
The prospective raise comes amid volatility across Musk’s other businesses. Tesla shares recently fell 15% in a single session after the automaker missed earnings expectations and reported its first negative cash flow in two years. SpaceX has dropped about 50% from its post-listing peak after going public in June in a record initial public offering that raised $86 billion.
Boring Company’s strategy focuses on lowering the expense of building and operating tunnels through standardized boring machines and simplified station designs. Commercial networks completed to date remain limited, and the company continues to pursue projects financed with private capital and passenger fares in U.S. cities and abroad.
