Boring Company reportedly raising funds at $20B valuation

Elon Musk’s tunneling startup The Boring Company is in talks to raise a $4 billion funding round at a $20 billion valuation, according to The Wall Street Journal. The deal hasn’t closed and the terms could change, the WSJ reports — but at $20 billion, the valuation would mark a significant jump from The Boring Company’s $5.7 billion valuation in 2022.

The company’s flagship project is a network of tunnels under Las Vegas, where Teslas shuttle passengers between stations. That build-out hasn’t been without cost: tunnel workers have suffered serious injuries, and Nevada regulators said last year that The Boring Company violated environmental regulations nearly 800 times.

The Boring Company has announced plans to build tunnel networks under Nashville and Dubai. The WSJ also reports the startup has pitched projects in Baltimore, Chicago, and Los Angeles.

The Boring Company spun out of Musk’s rocket company, SpaceX, in 2018. SpaceX recently completed the largest IPO ever, but its stock price has taken a significant dip since then.

Why it matters

If the round closes at $20 billion, it would value The Boring Company far above its 2022 mark even as regulators scrutinize its environmental record — a test of how investors are weighing the company’s expansion plans against its execution and compliance risk.