Musk's Boring Company raises $3B, hitting a $23B valuation
What's the deal? Elon Musk's The Boring Company has raised $3 billion in a Series D round, valuing the tunnelling startup at $23 billion. The round was led by the United Arab EmiratesDealroom has a profile for this one. Try Dealroom →.
Other participants included Human CapitalDealroom has a profile for this one. Try Dealroom →, Vy CapitalDealroom has a profile for this one. Try Dealroom →, Valor Equity Partners, Sequoia Capital, Andreessen Horowitz, Temasek, Shamal HoldingDealroom has a profile for this one. Try Dealroom →, and Baron CapitalDealroom has a profile for this one. Try Dealroom →.
Why now? The raise marks a sharp climb from the company's $5.7 billion valuation after a $675 million round in 2022. It follows two years in which the company grew from a single Loop system to a multi-city tunnelling program.
What's the endgame? The proceeds are expected to fund over 93 miles of underground infrastructure across the UAE, building on the Dubai Loop project. The company also plans to expand Loop projects in Las Vegas, Nashville, and Dubai, and to ramp up hiring across engineering, production, and operations.
Musk founded the company in 2017 after complaining about traffic congestion. Its mission is to solve congestion and enable rapid point-to-point transport through underground routes.
What's working? The Las Vegas Loop is its largest operating project. The company said the Encore connector, linking the Las Vegas Convention Center to the Encore Resort, was completed in under 12 weeks, cutting a trip that takes 15 minutes on surface streets to about 55 seconds.
Its Prufrock tunnel-boring platform is central to the shift. Newer machines launch and retrieve directly from a transporter called The Monster, eliminating the traditional launch pit, crane, and heavy civil preparation, the company said.
It has added Cybertrucks to its passenger fleet, demonstrated Full Self-Driving on selected segments, and started limited service to Harry Reid International Airport. Two dedicated Airport Connector tunnels, each 2.3 miles, are built and will open soon.
The signal: The UAE-led round ties The Boring Company's growth to Gulf capital and its first international construction contract. With a valuation now four times its 2022 mark, investors are betting the tunnelling model can scale across multiple cities at once.
Image credit: Generated with Gemini
