The Boring Company has finally made a breakthrough in its mission. The Mayor of Chicago Rahm Emanuel selected the idea of The Boring Company for a tunnel within the city. The tunnel will connect O’Hare Airport with the central business district. The most surprising part of the project is that Elon Musk’s company is not going to use any of the taxpayer’s money. They have promised to build it at their own cost. The overall cost of the project is estimated to be $1 billion which is bit shocking. Keeping in mind about the distance and cost of various tools and efforts it seems highly unlikely that the project will be completed at the said cost. When the civil engineers and executives were asked about it, they were not so sure about the figure proposed. But, it turns out all good for Chicago as they don’t have to spend anything.
Earlier, Elon Musk had said that tunnels are the only way to get rid of the soul-destroying traffic. He released a video on twitter of the proposed model earlier. He has promised to complete the work at a faster rate and lower cost. It seems highly unlikely that the project will be completed in the proposed time. If he fails to do so, Elon Musk might face more financial problems. Also, Chicago’s Mayor can land in trouble with his failing administration and transport projects.
The Boring Company’s Deal
In regard to building the whole transportation system, the company has asked to own the total transit fees it generates. Further, all the money generated from advertisements and other means will be in the company’s favor. The ownership of the tunnel is not yet finalized but it seems like Chicago will grant the lease to the company for a longer duration. Although, the mayor was found quoting that it will share a significant amount of profit made by the transportation. He declined to comment on the timeline offered by the company but said they were very optimistic about the dates.
In a press conference, Elon Musk said that they were sure that the tunnel will help the company cover the operation cost. He said that “It is very unlikely that we will not be able to cover the operational costs every day”. When asked about the project, he quoted “It is something new so we want everyone to cheer us up. If we succeed, it will be of great use in the city. But, if we fail, we might end up losing a lot of money”.
The figure seems unlikely because it requires boring a tunnel inside the Earth. Second Avenue Subway in NY costs around $2.5 billion per mile. The company’s claim to dig 18 miles at a fraction of cost seems too good to be true. The company has predicted a cost of $59 million per mile which is way low than others. Excluding the cost of stations and vehicles which are believed to be far more expensive. The project is selected as a D-BOM contractor which stands for Design, Build, Finance, Operator and Maintain.
Recently, Elon Musk is facing a huge financial crisis. It was revealed that Tesla is not generating any profit since the start and he has cut down his labor force too. Further, predicting such a project with the price tag is something strange. If the project turns out to be successful, it will be a major breakthrough both for Elon Musk and his company.