Virgin Hyperloop, a subsidiary of Richard Branson's Virgin Group, has successfully completed the first manned test run of its futuristic high-speed transportation system.

The test was completed on a private test track in Las Vegas on Sunday.

The company's hyperloop system, a form of transportation that utilizes a vacuum tube to propel a vehicle to speeds of up to 600 mph, was able to reach 100 mph on the track with two passengers on board. Virgin Hyperloop's chief technology officer, Josh Giegel, and the company's director for passenger experience, Sara Luchian, took the first ride.

Unlike Tesla's hyperloop system, Virgin Hyperloop utilizes magnetic levitation to lift its train above the track. The technology is similar to that used in advanced railway projects in countries such as Germany and Japan. Virgin Hyperloop claims that its vehicles should be able to reach higher speeds but its 500-meter-long test track in Las Vegas is limiting its ability to go faster.

Virgin Hyperloop executives said that the test was a milestone for the company as it will bring the technology closer to being commercialized. The company is aiming to build much longer systems that will connect cities and towns across the country.

Giegel told reporters following the test run that the company is planning to build much larger pods that should fit between 25 and 30 passengers. He added that future commercial systems should be able to ferry tens of thousands of passengers each hour, allowing them to get to their destinations much faster when compared to traditional public transportations.

Virgin Hyperloop claims that its hyperloop pods will soon be able to travel at speeds similar to that of airplanes but at the fraction of the cost and energy consumption. While Tesla is planning to build its hyperloop systems below ground, Virgin Hyperloop said that it will mainly be focusing on building above-ground projects.

Before it can fully achieve its goals of ferrying thousands of passengers between cities, the company will still need to overcome a number of difficult hurdles. Virgin Hyperloop still needs to attract more investors if it hopes to complete its next project, which is a six-mile test facility in West Virginia estimated to cost more than $500 million. The company also still needs to prove its system's safety and reliability before it is certified for public use.