Musk’s Boring Company raises $3 billion, boosting valuation to $23 billion

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The Boring Company, the tunnel construction firm founded by Elon Musk, has closed a multi-billion-dollar Series D funding round. According to Yahoo Finance, the company raised a total of three billion dollars. Its valuation now stands at approximately $23 billion. The fresh capital will be used to accelerate the expansion of its underground transportation network.

UAE plays a key role in the round

The round was led by the United Arab Emirates (UAE) and affiliated investment firms. Existing and new investors include Vy Capital, Sequoia Capital, a16z, Temasek, Human Capital, and Valor Equity Partners, the company announced on Wednesday.

The funding is intended to support projects in the US and abroad, including the Vegas Loop, the Music City Loop in Nashville, and the Dubai Loop — underground transportation networks that use fully electric Tesla vehicles (primarily the Model Y). Human drivers are currently still behind the wheel in most cases.

Boring Company aims for higher drilling speeds

According to the company, the partnership with the UAE could ultimately encompass more than 150 km of tunnels. The Boring Company says its network has grown from a single loop into a multi-city tunneling program, with projects spanning both soft soil and hard rock.

Using its proprietary Prufrock tunnel boring machines and autonomous construction technology, the company aims to increase drilling speeds and reduce the need for traditional launch infrastructure. Musk founded The Boring Company in 2016 with the goal of relieving urban traffic congestion through underground transportation networks.