Sure 'could' since it hasn't been done yet. However, given the first tunnel was less than 1/10 the cost of light rail and 1/90 the cost of subway
Bullshit. Read the article by Alon Levy -- you linked it. It's good. So read it.
The cost of Musk's single bare tunnel, incomplete, was 1/10 the cost of a fully loaded (two-track, stations, elevators, trains, etc.) subway system, complete, in the cheapest parts of Europe and Japan (which, you should remember, have higher-paid labor than the US). The average Euro/Japan price was 2-5 times the lowest price.
So quadruple Musk's cost for tunnel drilling (need to have a lane in each direction and "acceleration/deceleration" lanes, double it again for the balance of systems (this is a serious lowball), and hey, he's got a system with somewhat under the cheaper Euro/Japanese systems. Except it carries substantially fewer people (again, no cheating on safe vehicle spacing).
Or, he can build two tunnels (again, lane in each direction), double for balance of systems, and have a subway system half the price of Euro subway systems which can carry the same number of people as a Euro subway system. Which is more profitable? This dumb rubber-tired car *sugar* or just putting a subway in the tunnels?
Can Musk cut tunnelling costs below Euro levels? I never doubted it.
Can he cut costs below inflated US levels? Well, he doesn't need to invent *anything* in order to do that -- the US levels are all due to graft!
Does it make any sense to do the stupid *sugar* he's doing instead of just running trains in the tunnels? No.
He should be able to conquer the market for tunnel-boring in the US, what with sewer tunnels, water tunnels, utility tunnels, and subways -- I mean, all he has to do is charge what's being charged in Europe, he can undercut the graft-ridden US contractors and(by having somewhat lower tunnel-drilling costs than the European firms) make an enormous profit. Much like SpaceX replaced nearly all other satellite launch contractors, particularly the graft-ridden US launch contractors.
Or he can waste his time on this podcar bullshit that isn't going to really work.
To get this back to the financials: The paragraph two back is why the Boring Company is pretty likely to make tons of money, even though Musk's scheme of car tunnels is completely dumbass ignorant.