Boring Company Valued at $20 Billion in Latest Funding Round

Elon Musk’s tunneling venture, the Boring Company, wrapped up a funding round that pegs its valuation near $20 billion, The Wall Street Journal reports, citing people familiar with the situation. The round came with a peculiar requirement: some investors had to commit to building the business to participate.

The Boring Company instructed certain investors in the round that they would be expected to either help bring in employees or support business development—such as arranging introductions to government officials in cities where the company may build tunnels, according to the WSJ report. The company also laid out for prospective investors the kinds of roles it aims to fill, the sources said. If investors cannot provide suitable candidates, the Boring Company has the right to repurchase part of their shares, the people added. Musk responded to the article on Thursday by writing “True” on X.

The company produces boring equipment that, in its own view, is capable of tunneling underground at a lower cost than conventional construction firms. Since its 2018 spinoff from SpaceX, the Boring Company has built and operated a transportation network under the Las Vegas Strip and has floated initiatives in Baltimore, Chicago and Los Angeles.

A separate loop project in Nashville is in development, with the company funding it privately. Musk’s rocket company, SpaceX, made its public market debut in June, raising $86 billion in a record-setting initial public offering that produced a windfall for its backers.