Markets

The Boring Company Begins Operations at Las Vegas Loop

For people reluctant to gamble with waiting in Las Vegas traffic, The Boring Company has a new option: going underground. Elon Musk's subterranean venture announced that operations at its Las Vegas Loop have begun this week.

The $48.7 million project enables people to visit one of three stations and hitch a ride in a Tesla (NASDAQ: TSLA) Model 3 or Model X to travel around the 1.5 mile loop that connects the Las Vegas Convention Center campus. Based on testing that the company completed in May, the Loop can transport more than 4,400 people hourly at a speed of about 35 miles per hour -- a far cry from the autonomous travel at high speed that was the original vision of the project.

Welcome to Las Vegas sign.

Image source: Getty Images.

While the coverage of the current Loop is limited, the company plans to expand its reach. In addition to McCarran International Airport, The Boring Company seeks to add stations at various hotels and casinos on the Strip; in downtown Las Vegas; and at Allegiant Stadium, home to the city's NFL team.

While The Boring Company seems to be a winner in its endeavor of innovating urban transportation, it also stands to lose some of those victories if it can't make good on its contract with the city. According to the terms of its contract, the City of Las Vegas can impose a penalty of up to $4.5 million if The Boring Company fails to meet the travel demands for the Loop of nearly 4,000 passengers per hour for 13 hours during peak convention times.

10 stocks we like better than Tesla
When investing geniuses David and Tom Gardner have a stock tip, it can pay to listen. After all, the newsletter they have run for over a decade, Motley Fool Stock Advisor, has tripled the market.*

David and Tom just revealed what they believe are the ten best stocks for investors to buy right now... and Tesla wasn't one of them! That's right -- they think these 10 stocks are even better buys.

See the 10 stocks

*Stock Advisor returns as of June 7, 2021

Scott Levine has no position in any of the stocks mentioned. The Motley Fool owns shares of and recommends Tesla. The Motley Fool has a disclosure policy.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story

TSLA

Latest Markets Videos

    The Motley Fool

    Founded in 1993 in Alexandria, VA., by brothers David and Tom Gardner, The Motley Fool is a multimedia financial-services company dedicated to building the world's greatest investment community. Reaching millions of people each month through its website, books, newspaper column, radio show, television appearances, and subscription newsletter services, The Motley Fool champions shareholder values and advocates tirelessly for the individual investor. The company's name was taken from Shakespeare, whose wise fools both instructed and amused, and could speak the truth to the king -- without getting their heads lopped off.

    Learn More