The Boring Company, the tunneling initiative founded by Elon Musk, is preparing for a new type of investment. According to information from the Wall Street Journal, the company continues its negotiations to provide financing of $ 4 billion.

If this type of investment is realized, the total valuation of the company will reach 20 billion dollars. It is stated that changes may be made to the terms of the agreement, which has not been officially completed yet.

Huge Increase in Valuation

This new valuation reached by the company indicates a significant increase compared to its $ 5.7 billion level in 2022. The initiative, which left SpaceX in 2018, has attracted attention with its tunnel projects since then.

The Boring Company currently operates an active tunnel network under Las Vegas. Within this network, Tesla vehicles are used to transport passengers to different stations.

Safety and Environmental Issues

The startup’s operations also face several challenges. It is reported that personnel working in tunnel construction suffered serious injuries.

Nevada regulators said last year that the company violated environmental regulations nearly 800 times. Despite these legal and operational obstacles, the company aims to expand its activities.

The Boring Company announced plans to build new tunnel networks for the cities of Nashville and Dubai. The company also submitted proposals for various projects in cities such as Baltimore, Chicago and Los Angeles.

SpaceX recently held the largest public offering in its history. However, it is observed that SpaceX shares lost value after the public offering.

What do you think about the company’s high valuation target and expansion plans?