The Boring Company reportedly raising $4B at $20B valuation

Elon Musk's tunneling startup The Boring Company is reportedly in talks to raise $4 billion in a new funding round at a $20 billion valuation, according to The Wall Street Journal. If completed, the round would mark a significant increase from the company's $5.7 billion valuation in 2022.

The deal has not yet closed and terms could change, the WSJ reported. The Boring Company already operates a transportation system in Las Vegas that combines tunnels and surface routes, using Tesla vehicles to shuttle customers between stations.

Despite its progress, the company has faced challenges. Tunnel workers have suffered serious injuries, and Nevada regulators said last year that The Boring Company violated environmental regulations nearly 800 times.

The startup has announced plans to build tunnel networks under Nashville and Dubai, and has also pitched projects in Baltimore, Chicago, and Los Angeles. The Boring Company spun out of SpaceX in 2018.

What this means

The reported fundraising suggests continued investor interest in Musk's tunneling concept, despite operational and regulatory hurdles. The valuation increase reflects confidence in the company's existing Las Vegas system and its expansion plans, but the outcome depends on closing the deal.