The Boring Company seeks $4 billion at $20 billion valuation

Elon Musk's tunneling startup, The Boring Company, is in discussions to raise $4 billion in new funding at a valuation of approximately $20 billion, according to a report. The funding round has not yet closed and the terms could still change.

If finalized, the valuation would represent a dramatic increase from the company's last capital raise in 2022, when it secured $675 million at a $5.7 billion valuation with backing from investors including Sequoia Capital and Founders Fund. The company was founded by Musk and spun out of SpaceX in 2018. It focuses on developing specialized tunnel boring machines and constructing underground transportation networks, which it claims can be built at lower costs than traditional methods.

Currently, the company's only operational system is the Vegas Loop beneath the Las Vegas Strip. The system uses Tesla vehicles to transport passengers between stations near the Las Vegas Convention Center. The company states the system has carried more than 3 million passengers since it began operations in 2021.

The Las Vegas project, however, has faced significant challenges. Nevada regulators documented nearly 800 instances where the company breached...