There’s trouble below at Elon Musk’s Boring Co.

Tunnel Vision: Tesla car runs from the Las Vegas tunnel-a major plan for a bowling company.

Fortune Magazine Roger Kiss Bee

On December 16, 2020, SPACEX's Steve Davis, who declared that Elon Musk would be the president of a boring company, climbed a platform at the Las Vegas City Hall. He told the members of the city council about the first small section of the boring tunnel laid 40 feet in the Las Vegas Council Center a while ago.

It is a social vehicle system throughout the city, from the agent stadium to the Las Vegas Strip, Freemont Street, or the airport, in a minimum of 7 minutes. "This will be a private venture for our company and various real estate owners to fund," said Davis Group.

Davis's clothes were a rare and formal for him, a dar k-colored sports court and jeans. Apart from sporty jackets and space X caps, employees sometimes saw something worn. However, because of the lobbyist where the boring company worked together at the time, Davis prepared before the meeting, and in line with the Dengeki Message from Robyist 1, the Managing Director of Megalopolis, who focused on Fortune. I encouraged me to do it. (It is unlikely to be forced to wear a tie, "said Robyist.) In particular, the mayor of Caroline Goodman, one of Vegas's honestly boring company critic, was basically unpleasant.

Goodman's criticism is that Boring cannot end the social tunnel plan in another space. Boring has been investing more than 795 million yen from venture capital to achieve great ideas in a rail. However, in fact, seven years later, boring operates only a few tunnels in accordance with the information from the Ras Vegas agency and the Fortune Transactions surveyed. At the same time, the boring plan from California to Illinois, Texas, Florida, and Maryland has been canceled or dissolved. (Davis, masks, and a certain number of bowling traders did not respond to interviews).

In 2020, Davis gained the support of the unanimous parliamentary parliament necessary for the expansion of the boring tunnel that penetrates the city of Las Vegas, and early this year, planning a 6 8-mile station system with a bowling as a public transportation of Las Vegas. I got the first approval. But the problem is whether Boring can complete such a project. Also, how much does it cost to introduce this transportation?

In terms of financial side, Boring has a plan for an autonomous car. In other words, in the basement of Las Vegas, the driver must pay the driver for each person because it is transported at a relatively low speed of 65 km / h or less. Needless to say, the company has been suffering from almost constant staff and management. And probably the most important thing is that the company has lost spotlights from a mask, who has started everything.

For the article, Fortune talked to the four former executives and employees of the Boring Company, the politicians, Robyists, and the Las Vegas residents and engineers who worked with Musk's company in various projects. He also checked thousands of pages, a record of lobbying, and a contract, which were exchanged between the boring company employees and the local government officials.

The idea of ​​Boring Company in Elon was a good idea. It wasn't just transferred. "

Betting it all on Vegas

The boring company has given permission to build a complex matri x-shaped tunnel, but has only built a 4 or 8 km section so far. At the same time, there are no potential projects from California to Florida.

‘Soul-crushing’ traffic

In the 61 5-page biography of Walter Isakson, which was recently published, only three pages of masked tunnel projects have been mentioned, clearly showing that the interest of the mask has been shifted to other things in recent years. There is. Site X occasionally defended and advertised boring companies, but the mask lasted in April 2022. Steve Hill, a CEO, who manages the Las Vegas Convention Center (LVCVA), tells Fortune that the mask has come to Las Vegas several times to check the loop. Ta. According to three former employees, there were few masks on the spot.

For example, it was not every time. In 2016, the mask was obsessed with the idea of ​​destroying what is called a "sad" file. However, the title (and Boring's 20. 000 flame radiator) was able to climb a joke, and the mask was seriously configured. According to Asexon's book, Iron Mask invested $ 100 million in the plan, requested Davis to apply for two drills by $ 5 million, and immediately Kotokarifornia Space X Headquarters X Headquarters. I moved to digging. In 2018, the mask was substantially said that he paid within 10 million yen to build the first demo plan 1 of 14 miles of Los Angeles.

No n-traditional alignment: Access to the boring company tunnel at the Minami Station of the Las Vegas Conference Center on October 31.

Fortune Magazine Roger Kiss Bee

The tunnel is the principle of Hyperoop, and, according to his plan, ultimately, it is an underground tunnel that sends people to large cities at 100 miles per hour. Boring is a tunnel like a underground labyrinth with a small station in the city. People can enter the tunnel in their autonomous cars and go to the necessary places at 150 miles per hour. In textbooks, a 5-mile tunnel can be built in a week for a rally and bowling company.

Eventually, the mask was pointed out that it was pointed out that it was, as I saw, that it had traffic congestion and the opportunity to determine this kind of thing, "the mask rejoiced during the 2018 bowling tunnel demonstration. He said that you should refer to the mass. Boring drives all steps in design, construction, and operation, like Tesla and Space X, and digs a more profitable, different tunnel than ever.

Tunnel No. 1

When a boring company had a formal 1st plan with LVCVA, Davis moved from Washington to Las Vegas, who trained Baltimore Loop. Davis felt a certain kind of uncomfortable in the role of the speaker, but according to an employee, he said he was not serious and his head was abnormally cut off. In fact, he walks around the cabinet and communicates over the phone on the boring research center in Bastropy, Texas. Former employees remember that Davis brought eggs and bacon for breakfast. According to former employees, he works every time he is in a large city, and has a small house on the bosslopy land, as well as the living space in Austin downtown. He is spending night there.

However, according to former employees, Davis does not delegate the possibility of approving conclusions in principle, and is regarded as controlling the trivial things in the company, including the most trivial things. "Even the application for thousands of dollars spare parts has been directly involved from Steve," he said.

Map of the conference hall in Las Vegas. The guests of the SEMA exhibition use a tunnel to move from a station to another station.

Fortune Magazine Roger Kiss Bee

According to pitch books, 270 La-ching and boring employees, like other companies, have already been required to work long hours and work on weekends. Others in the past basically told the employees who heard how he actually worked for 18 hours. "When I worked for the first 16-1 16-1, it was presented to me as a noble sign," he said, and when they actually entered work, their boss actually 6 This is more than most people, pointing out that they told them in a month. Another person said that some people had already suspended for a week or sometimes for more than a day. "It was a very hated space as a workplace," he said.

But there are several important reasons why boring companies cannot keep hiring people. In Space X, the mask hired Gwinna Shotblella to the president to manage his daily work, hired a brand called Jancos, and managed all technical work. In a boring company, Davis is responsible for all of these direct responsibilities. But he was a powerful engineer, some workers spoke, and in fact he lacked the ability to communicate with people. "He didn't realize it was sympathetic," said one worker.

"The boring company's work looks like a huge fire alarm because of Steve Controls. According to their texts, this is a dee p-rooted, dee p-rooted mask. It happens for excitement.

"Working every day in a boring company is like a huge education anxiety," they say.

Past boss

In the past, the boss has added that it is more difficult to draw people to boring companies than other companies in Karamatsu. "The fact that tunnel engineers are hired by other erotic companies, and they are much less risky, and they are far conservative in their own thought s-as a result. It's not easy to make people and people interest ... if you want to work in Elon, your boring company is the last choice. "

However, while the initial leaders of the boring company have left, some have left, like Ashley Steinberg, the leader of legal affairs. Many employees have been promoted, including planning and development manager Tyler Fairbanks, HR manager's Kale Turapen, Machine Engineer Stuart Donnie and Julius Calendar.

Courier ceremony: But the construction has not been completed yet. The boring is under construction of a tunnel to Win, Angkor Resort, and Westgate.

JOHN LOCHER-AP IMAGES

Many dull traders, including Sequoia Capital Sean Magwire, Barrow Equity Partners Antonio Glacias, and VY Capital traders, have been rejected or not responded to the Fortune magazine request. For example, it has not yet been clearly revealed what traders are thinking about the performance of the bowling company and the leadership of Davis. If they are dissatisfied, it doesn't make sense. It's not true that they have all the opportunities to do something. Venture Capital has invested more than $ 790 million and has become a small number of shareholders, but it is unknown whether a major trader is in the board of directors. The ultimate valuation of the boring company was $ 5. 6 billion in 2022, but the bids reported by the Information newspaper have recently implied over $ 7 billion.

In June 2021, the Vegas Loop Project opened at Boring Central Station. A large number of media officials were invited, and he went down the escalator to a station illuminated by a neon, which was lined up with 10 taxis (the cost of boring companies was $ 20 to 30 million). At the station, a boring company employee puts passengers on the empty Tesla, and a driver of Boring runs a small on e-lane tunnel at 65 km / h. The tunnel is a white wall, with a width of 3 meters, pink, blue and green lighting.

Drive by driver at speed up to 40 miles per hour. Fortune Magazine Roger Kiss Bee

Previously, Hill, who worked in the government with Tesla to open a giant factory in northern Nevada, is the first city official who worked with a boring company, and is still enthusiastic about the plan. He describes this as "underground highway system that works like Uber and Lyft." According to LVCVA, about 1. 2 million convention customers have been on the Las Vegas Loop under the Convention Center since 2021, and the average of 4 and 9 of the 5 stars has won the average 4 and 9 of the 5 stars. 。

One is near Win and Angkor Resort Hotel on Las Vegas Odori, and the other is near the Westgate Hotel, which is on the eyes and nose to the Las Vegas Strip. Tunnel 1 to Westgate has already been completed, but Tunnel 2 cannot be completed until the parking lot lease is located directly opposite the hill office. Hill says that adjusting all movable parts is a "small dance." "it takes time".

Autonomy no more

It is not difficult to make a tunnel under a large city. You have to decide where to install it, focusing on electronic components, gas tubes, and large green straps in restaurants. It is necessary to secure space for protective shutters and stairs, and obtain a construction permit and land use permit. After that, it is necessary to start drilling while considering the danger of collapse and the protection of workers.

But before that, it must be helpful from politicians, actual government agencies, and the general public. The Chicago airport plan, which was negotiated by Boring, failed one step after Mayor Lori Lightfoot was elected in 2019.

There is nothing more noticeable as the lon g-awaited "Baltimore Mary Land Loop". This is an ultr a-hig h-speed double tunnel system with a total length of 57 km in which Boring digs more than 10 meters underground to connect Baltimore and Washington. According to boring monitoring, independent cars reach 240 km / h and on e-way time is within 15 minutes. The mask announced its preliminary intentions on Twitter and encouraged Rally Hogan, the governor of Maryland for many years. In April 2019, boring submitted a 50 5-page environmental assessment to government bureaucrats an overview of the plan.

Under site: On October 31, during the SEMA show, Tesla with tournament guests approaches the tunnel.

Fortune Magazine Roger Kiss Bee

The reaction was immediately. According to a telegram obtained by the Fortune Magazine at the request of the FREEDOM OF INFORMATION Act, the Maryland Automobile Bureau received at least 468 complaints, questions, and explanations from the county government, based on the proposal of the boring company. Ta. Following this, a public comment from the praise and the critic was sent. "I want the masters of this luxurious transport to use our association as experience.

The engineers also revealed their thoughts. Peter Müller, a consultant on the independent transportation system, reviewed his evaluation when Boring's reputation was published. In an interview with Fortune magazine, Muuler explained that the curve designed by Boring was too large to secure the high speed he expected. "They did not take a simple shape." This is the basis of engineering, but they ignored it.

"They did not consider simple shapes. This was 101 of the engineering, and they ignored it."

Peter Muller, autonomous car consultant

According to the material, the bowling company answered all the related questions and concerns, but the plan collapsed shortly thereafter. Federal Expressway Regulatory Authority has not confirmed Boring's environmental impact assessment plan. The Baltimore Loop Project website was later deleted.

Boring Company is already looking at the development of a small version of the Las Vegas loop and the appropriate development of the unique pullflock tunnel excavator. According to official documents, Boring Company has been working with at least 12 lobbyists and lobing companies in Maryland, Texas, Nevada, and Florida since 2017. Nobody was hired by the company after the first political attention in those states.

Slower than a snail

Since the failure of Maryland's project, Boring Company has abandoned plans to make an autonomous car or a large robot taxi that can be transported to 12 at a time. In other words, Boring must hire par t-time drivers so that all 1 to 3 people using tunnels can transport. The Convention Center currently pays $ 4. 5 million to Boring to the use of the system (according to the LVCVA's 2023 economic year and cash report, equivalent to $ 50 per year). The resort World collects $ 5 for on e-day tickets for the use of a bowling tunnel from the resort world to the convention center (there is an option to pay with Dogecoin support). Perhaps Boring has assisted the cost to keep the fare low.

Last year, boring collected $ 675 million. In other words, the company will not need to worry about cost assistance yet. But in the long term? "One of the difficulties of social traffic is a lot of cost," says Muller. "In the United States, there are virtually no public transportation system that produces profits."

If the boring company refuses its own plans, LVCVA guarantees the danger with its own insurance, and the system will be transferred to either local government, state, or LVCVA. The problem is that the tunnel is too small to get a huge car. In addition, the tunnel is made exclusively for EVS and does not support gasoline engine vehicles. It's difficult to find an alternative operator.

The boring Central station passengers and the Tesla car flowed in Las Vegas on October 31. Fortune Magazine Roger Kiss Bee

But the biggest risk is reputational damage. Former employees will say that if the boring company tunnel collapses, the result will be tragic, even if there is no casualt. This reflects the concerns of the mayor of Goodman, and the mayor of Goodman is worried about what will happen if the evacuation route in the loop tunnel cannot be secured or the lighting disappears and everything is dark. He says.

"They visited Florida to make a tunnel, visited the airport in Texas and Chicago, and no one ate. Nobody except us accepted the offer. I want to be guinea pigs. there is no". Hill of LVCVA said that concerns about boring companies are more related to achievements than actual operations and technical issues. "Obviously, safety must be the first values.

Even in Las Vegas, the loop plan seems to be unbearable for many urban residents. I still drove a lithin tunnel to a Uber driver when Boring was in a traffic jam just above the space that would ultimately dig a tunnel into the airport, on the East Troppicana in Las Vegas. I asked if there was something.

"Is it possible?-He answered.

This article is considered part of the digital special edition "Inside Elon's UNIVERSE" of "Fortune".

The version of this memo is published in the headline of "Boring" in the December 2023 issue of "Fortune" magazine in December 2024. If the