The Boring company is about to make inroads into China later this month. The company started by the tech billionaire Elon Musk has been making the headlines since its inception. The reason behind the company’s popularity is not just due to the founder but also its potential to have a major impact on the transportation industry.
Cities all over the world are getting crammed in with people and this has resulted in their exponential growth in terms of size. The cities that could be covered in 1 hour a decade ago now needs over 3 to traverse. The increase in time is not the sole reason. Another major reason is the increase in the number of vehicles on the road that leads to congestion. Therefore two major issues of today’s cities are traffic congestion and the size. The Boring Co. has the vision to solve these two issues with one solution. Although this solution is not a new idea by a long shot, the new way of implementation could be the reason behind its success.
The Boring Company is an attractive project for many investors but it did not get any investments from outside until recently. 8VC, Vy Capital, Craft Ventures, Valor Capital and DFJ were the main investors in the recent round that invested a total of $120 million for the Boring Company. The investment would help the company expand its reach into newer markets where there is a demand for such innovations.
Currently, the company has a test tunnel in Hawthorne, California that is the headquarters of the company itself. Moreover, it also has won a contract for a tunnel in and around the Las Vegas Convention Centre, California. Not every project has seen the light of the day though. One tunnel in Los Angeles, California was scraped off just like one in Chicago. One more project that would have connected Washington DC to Baltimore is under review for environmental damage.
Amidst the hurdles, there is a ray of hope for the company as it offers a newer mode of transport that would be fast and efficient.
China is a rapidly growing economy and the level of technological development is significantly higher than in other major economies. The company offers growth opportunities to smart and modern ways of transportation. The boring company can come in very handy for Chinese infrastructure development.
Elon Musk in a tweet announced that he is going to take his company to China. The launch will be soon at the end of August. Musk will be attending a conference in Shanghai during that time and this is a good time to launch the company in the country.
China currently has the largest network of high-speed railways in the world. This is even more than the combined length of Japan, France, Spain and the USA. This reflects upon the fact that the country has really invested loads of money in the infrastructure of the nation. This is crucial for the development of any economy as people need to move between places efficiently. The better the transportation, the better the people-to-people connect and business among the people. The Boring Company thus has a great chance of succeeding in China.