Elon Musk's private tunneling firm, The Boring Company, may just prove to be a profitable venture for the tech-savvy billionaire as it bags its first paying contract.
The board of the Las Vegas Convention and Visitors Authority (LVCVA) announced this week that it has granted The Boring Company a $48.6 million contract to dig and build a two-mile Loop system within the city.
The two-mile Loop will be built to expand the Las Vegas Convention Center and to allow visitors to get to and from different areas much faster. LVCVA apparently went over The Boring Company's proposal, which was then passed to the board for approval back in March.
The proposal was reportedly very competitive in terms of pricing and in how efficient it was in transporting a massive amount of people in a short time.
Unlike other offers to improve the transportation system within the convention center complex, Musk's proposal won the crown in how it would use tunnels underneath the city to move people using electric vehicles. The fully autonomous electric vehicles would be traveling on electric rails and can reach speeds of up to 155 miles per hour.
The Boring Company initially estimated that the two-mile Loop could cost between $33 million and $55 million. The firm then revealed that the final cost of the project would be around $52.5 million. Musk previously mentioned that he can drastically reduce the cost of the build by upgrading his company's currently boring machines. Other cost-saving measures include using the reusing the dug up dirt to create concrete.
While still having the majority vote by the Las Vegas board, one member reportedly expressed his concern over the project, stating The Boring Company's lack of experience for the particular project.
Mayor Carolyn Goodman was the single opposition to the contract being given to The Boring Company. The firm has so far only dug one tunnel, which was a one-mile stretch that was dug under the Space X campus.
If The Boring Company is successful in its work on the Las Vegas project, it may very well attract other cities and establishments to hire the firm. The LVCVA will essentially be the firm's first paying customer and its first venture into the commercial market.
LVCVA CEO Steve Hill recently commented on the approved contract and expressed his enthusiasm over the project. Apart from offering the most competitive proposal, Hill apparently believes that Musk's idea to enhance the transport system in the convention area is unique, innovative, and fun. The experience in riding the underground system will likely be an attraction in its own right once it is completed.
