TLDR
- The Boring Company is in talks to raise $4 billion at a $20 billion valuation
- This would be a massive jump from its $5.7 billion valuation in 2022
- The startup runs a Tesla-powered tunnel network under the Las Vegas Strip
- It has announced tunnel projects in Nashville and Dubai
- Nevada regulators cited the company for nearly 800 environmental violations last year
Elon Musk’s tunneling startup, The Boring Company, is reportedly in talks to raise $4 billion in new funding. The deal would value the company at around $20 billion, according to the Wall Street Journal.
Elon Musk owned Boring Company is reportedly in talks to raise ~$4 Billion at a valuation of ~$20 Billion https://t.co/ohT6CZ0G73 pic.twitter.com/D0Uyyis6T6
— Evan (@StockMKTNewz) July 25, 2026
The round has not yet closed, and terms could still change.
A Big Jump From 2022
The new valuation would be a steep climb from the company’s last funding round. In 2022, The Boring Company raised $675 million at a valuation of $5.7 billion from investors including Sequoia Capital and Founders Fund.
The company spun out of SpaceX in 2018. It builds tunnel boring machines and claims it can dig underground transit systems more cheaply than traditional construction firms.
Its only operating system right now is a loop under the Las Vegas Strip. Tesla vehicles ferry passengers between stations near the Las Vegas Convention Center.
However, the Las Vegas operation has not been without problems. Tunnel workers have suffered serious injuries, and Nevada regulators found the company violated environmental regulations nearly 800 times.
The Boring Company has pitched projects in Baltimore, Chicago, and Los Angeles. Most of those have not moved forward.
Expansion Plans in Nashville and Dubai
The company is currently developing a new loop in Nashville, which it is privately funding. It also announced a Dubai project in February.
The first phase of the Dubai project covers four miles and is expected to cost $154 million, with completion in about one year. A second phase would extend the route to 14 miles at a cost of $545 million over three years. It is not clear who will fund the Dubai expansion beyond the first phase.
Private market investors have shown a strong appetite for Musk-linked companies, often paying premium prices for access to his portfolio. Investors who backed his $44 billion Twitter takeover eventually made money after the platform was folded into his AI startup xAI, and later into SpaceX.
Tesla shares dropped 15% last Thursday, wiping out $215 billion in market value after the company missed earnings targets and reported negative cash flow for the first time in two years.
SpaceX went public in June in the largest IPO on record, raising $86 billion. Its market cap nearly doubled in the days after listing before shares fell around 50% from their peak.
Despite those drops, investor interest in Musk’s private companies appears to remain strong, with The Boring Company’s targeted valuation reflecting that trend.
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