Tesla owner Elon Musk's The Boring Company has secured several million from outside investment for the first time, according to a report from Bloomberg.
The investment is supposed to assist the company in its development of tunnel-based transportation systems, with the publication disclosing that a $120 million stock sale was sanctioned after gaining access to a securities filing obtained via the Prime Unicorn Index.
The above is a company that tracks the performance of private companies in the US and reviewed by Bloomberg News. The investment comes as an addition to the $113 million The Boring Company raised in 2018. Venture capitalist with Future Ventures and director at Tesla inc. and Space Exploration Technologies Corp, Steve Jurvetson, has expressed delight in having secured a deal with Boring.
“We are delighted to be an investor in Boring,” he said. “Boring is a great example of the disruptive playbook we look for.”
Boring is valued at about $920 million following the new outside investment, per a company spokesman. Craft Ventures, 8VC, Vy Capital, Valor Capital and DFJ are the chief investors therein.
The company won its first commercial transport contract in the form of a $48.7 million project to shuttle visitors around the Las Vegas Convention Center back in May. They're best known for pragmatic funding methods, which has included the sale of flamethrowers and hats - those brought in $1 million and $10 million respectively.
As it pertains to the Las Vegas project, it will go a long way in determining whether Boring can dig more cheaply than its competitors.
The company has already built a test tunnel in Hawthorne, California, but plans for one in Los Angeles were binned due to neighborhood groups protesting. A tunnel could also be built in Chicago but that one is in doubt as Mayor Rahm Emmanuel, who was the biggest supporter, has left office.
Jurvetson, meanwhile, is a long-time friend of Musk and invested in both Tesla and SpaceX pretty early. He is currently on Tesla's board, having taken a leave of absence in April.