According to CNBC, The Boring Company has secured $3 billion in new financing led by the United Arab Emirates and achieved a $23 billion valuation.
International expansion accelerates
The company announced its latest valuation late Wednesday, marking a major milestone for a venture founded inside SpaceX in 2017 and spun out a year later. With the new capital, The Boring Co. plans to build over 150 kilometers (or 93 miles) of tunnels in the Middle East, including the Dubai Loop project first unveiled in February of last year. This represents the firm’s first international construction contract — a key inflection point after years focused almost exclusively on U.S. projects.
The UAE-led round draws from investors who have previously backed Elon Musk’s other ventures, including Valor Equity Partners, Sequoia Capital, Andreessen Horowitz, Singapore’s Temasek, and Baron Capital. These same firms supported Tesla, SpaceX, and Musk’s 2022 acquisition of Twitter. The funding will finance high-cost tunneling operations, including hard-rock excavation — a technical leap demonstrated recently in Nashville’s limestone geology.
In Nashville, Tennessee, the company broke ground on the Music City Loop — a 20 miles tunnel system designed to carry paying passengers between downtown and the airport in Tesla vehicles. That project, fast-tracked despite local opposition, now shows active progress: footage released this week documents its Prufrock tunneling machines at work.
Operational challenges and stalled initiatives
Despite ambitious targets, many Boring Co. projects have failed to materialize. In 2018, it abandoned tunnel plans in Los Angeles; proposals for Chicago and Washington, D.C., never advanced. Earlier this year, the Tunnel Vision Challenge offered winners a “free” one-mile tunnel — but the Baltimore Ravens, who won, declined the offer after initial meetings. Community resistance persists: a Vanderbilt University survey in March found most Nashville residents oppose the tunnels, and ProPublica reported hundreds of environmental violations by the company in Las Vegas, alongside workplace safety and environmental infractions in Texas.
The sole operational public system remains the Las Vegas Convention Center (LVCC) Loop, where Tesla vehicles shuttle passengers between the downtown convention center and casino resorts. Yet growth is underway there too: in June, the company won approval from the Nevada System of Higher Education to build a station at the University of Nevada Las Vegas campus and is pursuing extensions to Harry Reid International Airport and Allegiant Stadium — home of the NFL’s Raiders.
The company’s strategic alignment with Tesla continues to deepen. In 2025, Tesla paid The Boring Co. approximately $1 million to dig a “Cybertunnel” beneath its Austin Gigafactory, linking a Cybertruck assembly line to a vehicle loading lot. Tesla vehicles remain the exclusive passenger shuttles across all Boring Co. stations.
Source: CNBC
Compiled from international media by the SCI.AI editorial team.
