Elon Musk unveils landmark tunnel in Los Angeles in bid to eliminate city traffic

Elon Musk has unveiled a tunnel underneath Los Angeles which the billionaire says is a milestone towards eliminating traffic in congested cities.

At an event on Tuesday night, Mr Musk’s “The Boring Company” unveiled a 12-foot-wide, one-mile test tunnel in Hawthorne, California.

It will transport passengers travelling in Tesla cars, modified to fit onto a track, that can travel at up to 50 miles per hour, although Mr Musk said future tunnels could transport people at 150mph. 

The Boring Company, which Mr Musk set up to bore holes underneath cities after becoming exasperated at traffic in Los Angeles, eventually plans to build loops of two-way tunnels underneath cities with entry and exit points for passengers.

As well as Tesla cars that will transport pedestrians, Mr Musk said motorists would be able to drive their own vehicles into future tunnels, as long as they are modified to fit on its track - an upgrade that would cost between $200 and $300 (£158-237).

Cars and passengers will also be able to board and exit the tunnels through ramps and lifts at thousands of locations around the cities, with rides costing around $1. The tunnels could also be used for utilities and water supplies, he said.

Ultimately, The Boring Company says its loops will transport around 4,000 cars an hour.

Mr Musk, also the chief executive of electric car maker Tesla and rocket company SpaceX, has dedicated time in the last two years to The Boring Company, despite multiple controversies at Tesla. “Traffic is driving me nuts. Am going to build a tunnel boring machine and just start digging…” he tweeted two years ago. “It shall be called ‘The Boring Company’.”

The company plans to build its first full loop in Chicago. Creating an 18-mile two way tunnel for passenger vehicles is likely to cost $1bn (£790m), Mr Musk said. It is also working on further  tunnels in Los Angeles and Las Vegas, and receiving inquiries from cities around the world.

“It's ridiculous how much interest we've had in investment”, he added. The company’s president Steve Davis said that the company gets between five and twenty enquiries each week from municipalities and stakeholders. 

Building the tunnels is both cheaper and 15 times quicker than other tunneling technologies available on the market, Mr Musk claimed. The Boring Company says it is the first to be able to burrow while simultaneously reinforcing the walls of the tunnel. 

The machines that bore the tunnels are powered by Tesla batteries and motors, and the company also plans to recycle dirt from the tunnels and turn it into bricks. 

The Boring Company, which is majority owned by Mr Musk, was given special permission by the City of Hawthorne to build its test site, although the development has been criticised by residents. 

Mr Musk himself says that he has provided much of the funding for the company, which he calculates to be around $40m, with only $10m on building the test tunnel itself. Musk owns around 90pc of The Boring Company.

Loops could be sold once built and managed by third parties, said Mr Musk, declining to go onto further details on plans for the company to be profitable. 

“We definitely do not have all the answers here”, said Mr Musk “It's not like look at our business plan with all these precise things.”

Mr Musk also plans to use the tunnel-digging technology to build a high-speed hyperloop system. He said the first is being built by SpaceX between Baltimore, Maryland and nearby Washington D.C.