Musk Says Tesla Shouldn't Be Worth $50 Billion

Elon Musk Explains Why Boring Tunnels are Better than Flying Cars
Credit The Boring Company

19 May, 2017

Perhaps Musk meant this as a long-term projection, because when pre-orders opened up last Wednesday, Tesla and SolarCity also rolled out a calculator to give prospective customers an estimate on how much a solar roof would cost them.

And in contrast to the claims of the 15 workers interviewed by The Guardian-which Tesla attempted to downplay last week in a preemptive blog post-Musk took issue with the depiction of a hard-boiled operation that's working feverishly to prep for production of the Model 3 sedan in July. Am going to build a tunnel boring machine and just start digging... It wants to increase machine power and have them run on electricity instead of diesel, automate the process with fewer human operators, and tunnel continuously instead of erecting support structures.

Cities in Europe, America, and the Middle East have expressed interest in adopting their own Hyperloop tracks, and study groups are at work making the concept a reality.While he doesn't have a company working directly on Hyperloop technology, Musk has been behind several initiatives to turn it into a reality.

Tesla also said it was also working to improve efficiency, citing vehicle fix times that have fallen by 35 percent due to the use of remote diagnostics. So even though Musk likes to use the example of Tesla cars using the tunnels, they could, indeed, be a bit like subways, as those electric sleds might be used for transporting people, sans a vehicle.

This one is simple.

Automate the TBM. While smaller diameter tunneling machines are automated, larger ones now require multiple human operators.

The main barrier for tunnels is cost.

How can this not be an agenda on Musk's plan? Shrinking the size of the tunnel is one way to do this, so rather than a typical 28-foot wide tunnel (8.5 m) for a one-lane road, the team will burrow 14-foot (4.25-m) tunnels and shuttle cars along electric sleds.

Another upside of the system is that it enables the conversion of internal combustion vehicles into zero emission vehicles.

After Lee tweeted about how extraordinary that cost was, Elon Musk responded to him on Twitter, agreeing that "The economics are not yet compelling where housing and utility costs are low and property taxes are high". Others complained of injuries they say are related to years of working through injuries to avoid possible consequences.

Can Tesla be both overvalued and undervalued?

Tesla didn't dispute that its recordable rate of injuries and illnesses was above the industry average between 2013 and 2016, but changes in its practices have resulted in a rate for the first months of 2017 that is 32% below the industry average. It's quite possible that he'll be able to apply the same principle to tunneling and make tunnels faster, cheaper and better than the competition.

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