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Boring Company Loop - The Next Tesla Moat

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Buckminster

Well-Known Member
Aug 29, 2018
10,330
51,395
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With the solid blue line going live next year, would you as a Vegas taxi company choose to purchase anything other than an M3 going forwards?
How many world leaders will use the tunnel from Bellagio to the convention center and decide not to purchase a Loop in their home town (alternatives x4+ in cost with no public access / journey continuation flexibility)?
 
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With the solid blue line going live next year, would you as a Vegas taxi company choose to purchase anything other than an M3 going forwards?
How many world leaders will use the tunnel from Bellagio to the convention center and decide not to purchase a Loop in their home town (alternatives x4+ in cost with no public access / journey continuation flexibility)?

That line is not for general use, only Boring pods/ modified Xs. So no impact to taxi selection.
 
That line is not for general use, only Boring pods/ modified Xs. So no impact to taxi selection.
Are you sure? Generic FAQs state:

Is this public or private transportation?

Both. Within Loop, there will be a large quantity of autonomous electric vehicles dedicated solely to public transportation. In addition, privately owned compatible vehicles can access Loop. Accommodating pedestrians and cyclists will be prioritized over accommodating private vehicles.

Plus the Vegas page states:

Loop system extensions will operate at speeds of up to 155 mph. AEVs, which will be capable of moving between the LVCC Loop and Loop system extensions, will adjust speeds upon entering the LVCC Loop system.
 
Are you sure? Generic FAQs state:

Is this public or private transportation?

Both. Within Loop, there will be a large quantity of autonomous electric vehicles dedicated solely to public transportation. In addition, privately owned compatible vehicles can access Loop. Accommodating pedestrians and cyclists will be prioritized over accommodating private vehicles.

Plus the Vegas page states:

Loop system extensions will operate at speeds of up to 155 mph. AEVs, which will be capable of moving between the LVCC Loop and Loop system extensions, will adjust speeds upon entering the LVCC Loop system.

Yeah, that is the generic Loop setup. The Vegas is a pod style Peoplemover type setup for the convention center specifically (at least to start):
KTNV reported passengers will ride in a “bus-looking Tesla electric car,” that will reach speeds of 50 mph.
Boring Company’s $48 million tunnel under Vegas will travel less than a mile

The issue with adding Taxi (once they are autonomous) to that route is ingress/ exit points and system capacity (set up with optimal numer of pods).
 
Because investors need to know about the too much "demand problem" arising from this. Long term - major moat potential.
Can you ever have too much demand? That seems like a good problem to have. Only downside I can think of is quality of products/services tend to decline with high demand/volume like with fast food or media.
 
I have not seen this posted yet or if it did then it got much less attention than deserved.

Earlier this week, it was reported that the Boring Company had quietly filed a request to the government to double the size of the Vegas Loop plan to 65 miles and 69 stations. Just look at the size of this beauty:

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The story appears to have been originally broken by TechCrunch.


Considering that Boring Co have barely completed any of the initial 29-mile plan (the completed segments are the yellow ones on the map), this news suggests that either they are getting way, way far ahead of themselves with wildly out-of-control ambition, or it means they expect an extreme increase in the construction rate in the next few years.

65 miles of tunnels is a staggeringly large amount. They are not playing around anymore. This plan would make the Vegas Loop the sixth-largest public mass transit system in North America as measured by length and the seventh-largest by station count, even though Las Vegas is merely the 43rd-largest metro area on the continent in terms of population.

For comparison, the New York City subway system has 145 miles of tunnels, yet the greater NYC metro area has 11x the population of the greater Las Vegas area. So if this plays out as planned, soon Vegas, a mid-sized city about the size of Cincinnati or Brussels, will have 25x more miles of underground public mass transit infrastructure per capita than NYC. Bet you didn’t see that coming.

Also, it's not just about Vegas. It's about the pace of construction and what we can extrapolate based on it. If they can build 65 miles in Vegas in X years, how many years will it take to build similar systems in N other cities? If this works and can be built in a matter of a few years as this move apparently indicates, then the United States might come back from being the laughingstock of the urban transportation planning world to become the global leader within a couple of decades. I bet you didn't see that coming either.


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As always, this matters to Tesla for several reasons, most importantly that the Loop is ultimately meant to be robotaxi expressway racetrack. If you believe Tesla can achieve Level 4 autonomous driving then one of the key questions is how fast Boring Co can build Loops to serve the Tesla Network fleets. Remember, in March 2022 Elon stated that for Tesla Master Plan Part 3 “Main Tesla subjects will be scaling to extreme size, which is needed to shift humanity away from fossil fuels, and AI. But I will also Include sections about SpaceX, Tesla and The Boring Company.” Conspicuously absent from Investor Day was any of this promised inclusion of SpaceX and Boring, so I’m still waiting for more info. Maybe it will come in the Master Plan white paper. Regardless, it’s clear Elon has in mind some kind of Tesla-Boring integration that's deeper than what has been publicly disclosed.

It’s also important for marketing and product exposure because Vegas is by far the #1 tourist city in the Western Hemisphere with over 40 million visitors per year, although most of them are Americans traveling domestically rather than international tourists. This is like the marketing equivalent of half the NYC subway trains instead being Model Ys. That's kind of a big deal. Butts in seats lead to Tesla sales. The little initial Loop has already given over 1 million rides; the 65-mile system might do that in a single month.
 
I expect that production of tunneling machines is about to ramp up. The recent request for disposal of 145,000 gallons of water per day by Boring Co in Bastrop County, Texas was explained as being treated waste water from water-jet metal cutting.

That sounds like a LOT of metal being cut daily for assembly on the Boring production line.

Perhaps one of the upcoming new Tesla models is a Tunnel Car: more room for passengers and luggage, no need for fast acceleration or aerodynamics, no steering wheel, just a very basic box that can reliably and safely go 40 MPH without driver.
Thread here:
Boring company Robotaxi
 
Like Tesla there is more than on business in the Boring Company. (Not counting flame throwers.)

On one hand they are building tunneling machines and testing them working on exponentially increasing speed and lowering cost. This seems to be working well, if delayed (always everything takes longer than expected yet still vastly faster than the industry)

These machines then get offered as a service to people who need tunnels, all kinds of tunnels. That business is developing slowly as there are not enough Boring Co tunnels out there to build a big reputation yet.

The other business is building transportation systems. This is a sneaky ones-- governments have no money, so if a private industry can solve a transportation problem at no cost to the taxpayers it's hard for a government to resist. This is easier for TBC because they can raise money privately, and make it back with fares. And by controlling costs and providing quality service the result will be far more competitive with "public transportation".

Las Vegas is the perfect marketing strategy for both of these businesses.

The initial tunnel was "tunnel under contract" and now the casinos want fast easy access to the Las Vegas Convention Center LVCC.

So now there are these big multinationals who own 10+ casinos in Las Vegas that want them to all get hooked up, and TBC is giving them quotes I imagine are much cheaper than the train they built over the past 2 decades.

So TBC gets operational experience and then exposure to the millions of people who visit Vegas. It doesn't matter that Vegas has less population than NYC, it has huge visitor numbers-- much better for TBC than residents.