Elon Musk has a ~$766 billion company, Tesla (TSLA), and a ~$180 billion company, SpaceX, but it's his ~$10 billion company that's his most interesting, in my opinion.
That company, named The Boring Company, is an underground transportation firm focused on improving urban transportation.
The company digs tunnels, literally “boring” holes.
In Musk's view, solving traffic problems will require 3D roads with either flying cars or multi-leveled, underground tunnels. Tunnels are the more practical solution.
The company aims to solve traffic issues, transform cities, and make road transportation faster, cheaper, and safer.
These problems are global, affecting hundreds of millions of people every day, and the potential payoff is in the billions, maybe trillions of dollars.
Here's how to invest in The Boring Company's stock on the ground floor, well before its IPO.
Is The Boring Company publicly traded?
The Boring Company is not publicly traded on any exchange, which means you can't buy it in a traditional brokerage account.
There is no Boring Company stock symbol because it's still a private company that hasn't yet made its shares available to the public via an initial public offering (IPO).
Elon Musk started the company with a $113 million investment of his own money, as well as an initial funding round that included 31 investors.
Musk has a net worth north of $250 billion and a plethora of private equity and venture capital firms that are fighting to invest in every new funding round.
All that to say, The Boring Company will probably not need to turn to the public markets to raise capital any time soon.
Plus, keeping the company private gives Musk complete control over the strategic direction of the business. Public companies must provide quarterly financial results and answer to shareholders, whereas private companies do not.
At this point, there's no reason to go public, and I don't see it happening in the near future.
Fortunately, you don't need to wait for The Boring Company to go public to invest. You can buy stock before its IPO.
How to buy The Boring Company stock in 2024
You are an accredited investor if you have had annual income of $200,000 (individually) or $300,000 (jointly) over the past two years, or if you have a net worth exceeding $1,000,000 excluding your primary residence.
Accredited investors are able to invest in The Boring Company on a platform called Hiive (more info below).
If you aren't an accredited investor, skip to the retail investor section below to learn whether you can still participate in some of The Boring Company's upside.
How to buy The Boring Company stock as an accredited investor
Hiive is an investment platform that gives accredited investors access to high-growth, venture capital-backed startups and private companies, including The Boring Company:
Hiive connects sellers (usually employees, venture capitalists, or angel investors) who want to sell their shares with accredited investors who want to buy their shares.
Each seller creates a listing by setting their asking price and quantity of shares for sale. Buyers can accept a seller's asking price as listed or place bids and negotiate directly with the sellers. Buyers can also add companies to their watchlist and get notified of any new listings or transactions.
Click the button below to create an account on Hiive and see the current offerings for The Boring Company:
Register for Hiive
How to invest in The Boring Company stock as a retail investor
If you don't qualify as an accredited investor, there is one other, more indirect, way to gain exposure to The Boring Company's upside.
For starters, all of the cars and some of the electrical components used in the company's systems will be purchased from Tesla.
Tesla would obviously benefit from The Boring Company becoming mainstream, but it won't really affect Tesla stock much unless it becomes a huge success.
Other than what it buys from Tesla, The Boring Company manufactures almost all of its components in-house (a common thread among Musk's companies).
Plus, its only real competitors are all private companies (HyperSciences, EarthGrid, and Petra), meaning there aren't any other good options to invest in tunneling companies.
If you want to get a brokerage account and invest in Tesla, then it's possible to do so on eToro.
More about The Boring Company
Below is more information about The Boring Company, including its projects and financials.
Products & solutions
1. Loop
Loop is the company's main product, branded as “all-electric, high-speed, underground public transportation.”
It's basically a highway in a tunnel where passengers board individual vehicles and are brought directly to their destination station.
There is a Loop system in operation at the Las Vegas Convention Center.
The current system has a peak capacity of 4,500 people per hour, with expansion plans approved for The Vegas Loop which will include 68 network miles and 93 stations capable of transporting 90,000 passengers per hour.
The Boring Company plans to use self-driven Teslas moving at up to 150 mph, but it currently requires human drivers and speed limits of 35 mph.
2. Prufrock
Prufrock is the company's proprietary tunnel borer. It is capable of digging a 12-foot diameter tunnel at a rate of 1 mile per week and can “porpoise,” meaning it can enter and leave the ground on its own.
3. Hyperloop
Similar to its Loop systems, a Hyperloop is a high-speed transportation system involving electric pods that would carry passengers at 600 mph.
So far, only a test track has been built and speeds of 288 mph have been reached. There is no indication of when (if ever) the system will be deployed.
Financials
The Boring Company's Las Vegas Convention Center Loop is its only operational project.
The project cost the state of Nevada ~$47 million, though it's unknown how much of that was passed to The Boring Company as revenue.
The company receives $167,000/month in ongoing revenue to keep the project operational. It receives additional payments based on the number of passengers served.
One source claims the total revenue for the project is $2.7 million per year.
Who owns The Boring Company company stock?
The Boring Company has raised $913 million in four funding rounds.
The latest round came in January 2023 and valued the company at $10 billion, nearly double its $5.68 billion valuation set in April 2022. More recently, in October 2023, a secondary transaction had an implied valuation of$7 billion.
In addition to Musk's stake (which I would estimate around ~70%) and early employees (who probably own a cumulative 10%), there are 8 other investors. They are:
- Legendary Ventures
- 8VC
- Valor Equity Partners
- DFJ Growth
- Founders Fund
- Craft Ventures
- Sequoia Capital
- Vy Capital
How to buy the The Boring Company IPO
The Boring Company IPO date has not yet been set, but after its initial public offering, you will be able to look up its stock symbol and buy it in your brokerage account.
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The Boring Company valuation chart
Here is an overview of The Boring Company's previous funding rounds and valuations:
*Series A valuation is an estimate.
Any views expressed here do not necessarily reflect the views of Hiive Markets Limited (“Hiive”) or any of its affiliates. Stock Analysis is not a broker dealer or investment adviser. This communication is for informational purposes only, and is not a recommendation, solicitation, or research report relating to any investment strategy, security, or digital asset. All investment involves risk, including the loss of principal and past performance does not guarantee future results. There is no guarantee that any statements or opinions provided herein will prove to be correct. Stock Analysis may be compensated for user activity resulting from readers clicking on Hiive affiliate links. Hiive is a registered broker-dealer and member of FINRA / SIPC. Find Hiive on BrokerCheck.
