Do people really have a hard time understanding that the The Boring Company is not Tesla? It doesn't matter if The Boring Company is making a profit, or losing money, on each ride. Any person that decides to buy a Tesla after a ride cost Tesla nothing.
Although Boring Co is not directly a profit center for Tesla, the two companies have so many synergies that it does matter if TBC is making a profit. TBC's growth and success will catalyze Tesla's growth and success. Personally I think TBC's $600M funding round and full unanimous government approval for expansion in Las Vegas was one of the top ten most important events for Tesla in 2022.
Those who are doubtful about robotaxi network deployment in the next decade should especially be paying attention to TBC progress. Even if Tesla Network is more than a decade away from achieving commercial robotaxi deployment on surface streets, it should be vastly easier to get working well in an environment that's closed-loop, private, underground, well-lit, robotaxi-only, and well-marked with clear lane lines.
Furthermore,
faster robotaxis will earn more money and displace more demand for gasoline, all else being equal. Underground urban robotaxis able to bypass traffic, stops, and turns could hit average speeds of perhaps 60 mph. Surface robotaxis might get 20 mph average. Loop thus roughly triples the value of Tesla urban robotaxis. Higher speed is a win-win because it means more paid passenger-miles per day and higher pricing power because of shorter trip times making for a higher value service for the customer.
Tesla, and only Tesla, is making the best electric vehicles for Loop usage and might make custom vehicles for Loops in the future. A bigger 12-person vehicle and smaller 2-person pods are both needed for optimal mass transit service.
The speed and cost of Loop construction therefore matters greatly to Tesla's long-term fundamentals and mission success. Las Vegas is just the beginning. TBC is already working on Miami-Fort Lauderdale, Austin and other locations. They're envisioning someday having an interconnected national system. How will it affect how the public, potential Tesla employees, customers, and government partners view Tesla and Elon Musk? What will it mean for Tesla demand generation and EV adoption rates? How will the advent of intercity 120+ mph private underground vehicle travel affect demand for short-haul airplane travel, another major and rapidly growing sector consuming petroleum and causing substantial environmental damage and spewing air pollution into people's lungs? I wish more TSLA investors would be looking at these big picture questions.
(Not saying I wasn’t but that’s not why I thought the stock was headed this way just sayin).
