Adding impetus to his plan to build 150 kilometres of tunnels across the UAE, Elon Musk’s tunnelling startup, Boring Co., is on the verge of a significant valuation jump, entering talks to raise $4 billion at a valuation as high as $20 billion.
The Boring Company is in talks regarding a new funding round, according to The Wall Street Journal, but the deal is not yet closed, and its terms may be modified before a final agreement is reached.
The company has previously announced plans to build tunnel networks under Dubai and the American city of Nashville, and has submitted proposals for other projects in Baltimore, Chicago and Los Angeles. Dubai’s plans place the region among the company’s top potential expansion markets, which is betting on low-diameter tunnels to reduce congestion and transport passengers using electric vehicles.
“Building upon significant existing success collaborating with the UAE on Dubai Loop, this strategic investment will accelerate the partnership to deploy mass quantities of underground infrastructure across the UAE,” the company said.
However, the report did not reveal details of Dubai’s network, its cost, or the expected implementation timeline, but the inclusion of the emirate in the company’s plans reflects the continued interest of global technology and infrastructure companies in future transport projects in the region.
The Boring Company operates a transportation system in Las Vegas that combines tunnels and surface tracks, with Tesla vehicles transporting passengers between a number of stations. The project represents the company's most prominent operational model, which seeks to prove that tunnels can provide a less expensive and faster alternative to traditional metro projects.
This is in addition to the pact with Dubai’s Roads and Transport Authority (RTA) for the initial pilot phase of the Dubai Loop. The Loop will be a 6.4-kilometre underground transit network incorporating four stations. The active tunnelling is
It employs advanced technologies that bring a qualitative shift to the transportation system, enhancing efficiency and ensuring smooth movement in high-density urban areas.
