Musk’s Tunnel Construction Company The Boring Company Completes $3 Billion Funding at $23 Billion Valuation

TradingKey - On September 9 ET, Elon Musk's tunneling company, The Boring Company (TBC), announced the completion of a $3 billion Series D funding round, bringing the company's valuation to $23 billion.

The round was led by the United Arab Emirates and its affiliated investment entities, with participation from Human Capital, Vy Capital, Valor Equity Partners, Sequoia Capital, Andreessen Horowitz, Temasek, Shamal Holding, Baron Capital, and others. Musk subsequently congratulated the TBC team on X.

[Source: X]

TBC stated that the funds raised will be used to expand its engineering, production, and operations teams, advance Loop projects in locations such as Las Vegas, Nashville, and Dubai, and increase R&D investment in its Prufrock tunneling technology.

What Does The Boring Company Do?

Musk proposed the idea of founding a tunneling company in late 2016 and officially established TBC in 2017, initially as a SpaceX (SPCX) subsidiary, spun off into an independent company in 2018, and is currently headquartered in Bastrop, Texas.

TBC independently designs and manufactures Prufrock tunnel boring machines, with its primary R&D focus on increasing tunneling speed and reducing unit construction costs. The company has set a goal of boring 1 mile per week and reducing the comprehensive cost of Loop transit tunnels to under $5 million per mile.

In 2022, TBC completed a $675 million Series C funding round at a valuation of approximately $5.7 billion. This valuation reaches $23 billion, roughly 4 times that of the previous round.

UAE Pushes Over 150-Kilometer Tunnel Cooperation

This round of investment builds on the existing project collaboration between TBC and the UAE. According to the announcement, TBC plans to deploy over 150 kilometers of underground tunnel infrastructure in the UAE, a plan that excludes the already contracted Dubai Loop project.

The initial pilot route of the Dubai Loop is approximately 4 miles long with 4 stations, connecting the Dubai International Financial Centre and the Dubai Mall, at an estimated cost of $154 million. The full route will span up to about 14 miles with 19 planned stations and an estimated total cost of $545 million.

TBC has signed a formal cooperation agreement for the first phase of the project with Dubai's Roads and Transport Authority. Construction on the initial phase is scheduled to begin in late 2026, while the production of precast concrete components is already underway.

Loop Projects in Three Locations Enter Different Construction Stages

Currently, TBC's only publicly operational passenger Loop system is the Vegas Loop. The system transports passengers point-to-point in underground tunnels using Tesla electric vehicles, with its operating scope expanding from the initial approximately 1.7-mile Las Vegas Convention Center route to surrounding hotels, while launching airport shuttle services that include surface segments.

According to TBC, the Vegas Loop has transported more than 4 million passengers in total. Local authorities in Las Vegas have approved the construction of 68 miles of tunnels and 123 stations, though the approved network has not yet been fully completed.

In Nashville, TBC obtained permission from the Tennessee Department of Transportation on February 25, 2026, and initiated construction on the Music City Loop on the same day. The project is planned to connect downtown Nashville with Nashville International Airport. As of August, two Prufrock tunneling machines designed for hard-rock excavation were operating simultaneously.

Currently, the Vegas Loop is undergoing expansion, the Music City Loop has entered the construction phase, and the first phase of the Dubai Loop is in preparation for construction.