Elon Musk’s The Boring Company said on Monday it raised $112.5 million in equity during a recent funding round, according to SEC filing. Musk himself contributed nearly 90 percent of the funds, and the rest from early investors.
The Boring Company will be using the capital raised to fund its Hyperloop Tunnel project. Musk envisions a way to create a new revolutionary way to transport passengers at hyperspeeds in a pod throughout a series of tunnels underneath an urban environment.
The Hyperloop will significantly shorten travel times to a matter of minutes compared to several hours of driving through traffic. The pods will launch passengers at speeds upwards of 800 mph.
Musk received a permit by the Washington D.C. Department of Transportation in February to begin preparation and excavation of a fenced area for the Hyperloop. The tunnel in D.C. may connect to a station in New York City, but Musk also had plans to build one in Los Angeles, Chicago and then eventually onto a larger scale.
But officials are granting Musk to build from under Maryland’s Route 295 from Washington D.C. to Baltimore, but then eventually along the East Coast.
The Boring Company is one of the two finalists to build a new transportation system from downtown Chicago to O’hare International Airport.
The company says the big problem is that digging these tunnels can cost as much as $1 billion per mile, but it hopes to lower the costs by a factor of 10 or more.
Musk has received backing from the White House Office of American Innovation, which is led by Jared Kushner, President Donald Trump’s senior advisor and son-in-law, and Maryland Governor, Larry Hogan.
Musk has raised funding for the company by selling branded hats and flamethrowers. He says the company will sell lifesize interlocking Lego bricks made from rocks excavated from digging.