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The Boring Co. Chicago tunnel project under discussion with DOT officials
The Boring Company’s plans of building a high-speed underground transit system connecting downtown Chicago and O’Hare airport has taken a step forward, with Chicago Mayor Rahm Emanuel meeting with senior Department of Transportation officials on Monday. The meeting, which lasted for an hour, was held at the DOT headquarters in Washington.
“Mayor Emanuel provided DOT officials with an update on the Chicago Loop project. Chicago reaffirmed that there will be no federal funds involved. All parties agreed to work together and stay in close communication,” a DOT spokesman confirmed with Reuters on Thursday.
The Chicago Mayor met with several senior DOT officials, including Federal Railroad Administrator Ron Batory and Undersecretary of Transportation for Policy Derek Kan. The discussions reportedly covered several topics, such as the specific type of environmental review the high-speed underground tunnels would require, which transportation agency will oversee the project, and if the department would tap a specific person to oversee the approval of the tunnels’ permits.
The Chicago-O’Hare transit system is the Boring Company’s first high-profile undertaking. According to Tesla and SpaceX CEO Elon Musk, the Chicago tunnel, which will be more than 17 miles long, would cost roughly $1 billion to construct. The entire project will be privately funded, with no subsidies from taxpayers. As noted by Elon Musk in a press conference in Chicago, the initial digging on both sides of the planned tunnel could start in as early as three to four months. Musk expects the tunnel to be operational in 18-24 months after the initial digging.
The high-speed underground transit line is an opportunity for the Boring Company to flex its creative muscles and prove to the market that it is a serious player in the transportation industry. Prior to winning the contract in Chicago, the tunneling startup has only been involved in the construction of a test tunnel under the SpaceX headquarters in Hawthorne, CA, as well as a proposed proof-of-concept tunnel that is expected to run across Culver City in CA. With the Chicago-O’Hare project, however, the tunneling startup can ultimately prove that Elon Musk’s concept of an underground transit line is feasible and effective.
Based on the details that have been released about the project thus far, the Boring Co.’s Chicago initiative is set to showcase some impressive technology. The pods that will be used for the tunnels, for example, will be designed and manufactured by Tesla, a company that Musk heads. Each pod is capable of transporting up to 16 passengers at a time at speeds of up to 150 mph, thanks to an eight-wheel design that would be fitted on the sides of the vehicle. Travel time from downtown Chicago to O’Hare airport through the Boring Company’s tunnels is estimated to take around 12 minutes, far shorter than the 30-45 minutes the trip usually takes through conventional modes of transportation.
The Boring Company might be considered as a side project or hobby of Elon Musk, but the potential of the tunneling startup is substantial. Berenberg analyst Alexander Haissl, for one, noted that if the company does finish the Chicago-O’Hare tunnel, it could raise the Boring Company’s valuation to as much as $16 billion.
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Armored Tesla Cybertruck “War Machine” debuts at Defense Expo 2025
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Tesla Megapacks chosen for 548 MWh energy storage project in Japan
Tesla plans to supply over 100 Megapack units to support a large stationary storage project in Japan, making it one of the country’s largest energy storage facilities.
Tesla’s Megapack grid-scale batteries have been selected to back an energy storage project in Japan, coming as the latest of the company’s continued deployment of the hardware.
As detailed in a report from Nikkei this week, Tesla plans to supply 142 Megapack units to support a 548 MWh storage project in Japan, set to become one of the country’s largest energy storage facilities. The project is being overseen by financial firm Orix, and it will be located at a facility Maibara in central Japan’s Shiga prefecture, and it aims to come online in early 2027.
The deal is just the latest of several Megapack deployments over the past few years, as the company continues to ramp production of the units. Tesla currently produces the Megapack at a facility in Lathrop, California, though the company also recently completed construction on its second so-called “Megafactory” in Shanghai China and is expected to begin production in the coming weeks.
READ MORE ON TESLA MEGAPACKS: Tesla Megapacks help power battery supplier Panasonic’s Kyoto test site
Tesla’s production of the Megapack has been ramping up at the Lathrop facility since initially opening in 2022, and both this site and the Shanghai Megafactory are aiming to eventually reach a volume production of 10,000 Megapack units per year. The company surpassed its 10,000th Megapack unit produced at Lathrop in November.
During Tesla’s Q4 earnings call last week, CEO Elon Musk also said that the company is looking to construct a third Megafactory, though he did not disclose where.
Last year, Tesla Energy also had record deployments of its Megapack and Powerwall home batteries with a total of 31.4 GWh of energy products deployed for a 114-percent increase from 2023.
Other recently deployed or announced Megapack projects include a massive 600 MW/1,600 MWh facility in Melbourne, a 75 MW/300 MWh energy storage site in Belgium, and a 228 MW/912 MWh storage project in Chile, along with many others still.
What are your thoughts? Let me know at zach@teslarati.com, find me on X at @zacharyvisconti, or send us tips at tips@teslarati.com.
Tesla highlights the Megapack site replacing Hawaii’s last coal plant
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Elon Musk responds to Ontario canceling $100M Starlink deal amid tariff drama
Ontario Premier Doug Ford said, opens new tab on February 3 that he was “ripping up” his province’s CA$100 million agreement with Starlink in response to the U.S. imposing tariffs on Canadian goods.
Elon Musk company SpaceX is set to lose a $100 million deal with the Canadian province of Ontario following a response to the Trump administration’s decision to apply 25 percent tariffs to the country.
Starlink, a satellite-based internet service launched by the Musk entity SpaceX, will lose a $100 million deal it had with Ontario, Premier Doug Ford announced today.
Starting today and until U.S. tariffs are removed, Ontario is banning American companies from provincial contracts.
Every year, the Ontario government and its agencies spend $30 billion on procurement, alongside our $200 billion plan to build Ontario. U.S.-based businesses will…
— Doug Ford (@fordnation) February 3, 2025
Ford said on X today that Ontario is banning American companies from provincial contracts:
“We’ll be ripping up the province’s contract with Starlink. Ontario won’t do business with people hellbent on destroying our economy. Canada didn’t start this fight with the U.S., but you better believe we’re ready to win it.”
It is a blow to the citizens of the province more than anything, as the Starlink internet constellation has provided people in rural areas across the globe stable and reliable access for several years.
Musk responded in simple terms, stating, “Oh well.”
Oh well https://t.co/1jpMu55T6s
— Elon Musk (@elonmusk) February 3, 2025
It seems Musk is less than enthused about the fact that Starlink is being eliminated from the province, but it does not seem like all that big of a blow either.
As previously mentioned, this impacts citizens more than Starlink itself, which has established itself as a main player in reliable internet access. Starlink has signed several contracts with various airlines and maritime companies.
It is also expanding to new territories across the globe on an almost daily basis.
With Mexico already working to avoid the tariff situation with the United States, it will be interesting to see if Canada does the same.
The two have shared a pleasant relationship, but President Trump is putting his foot down in terms of what comes across the border, which could impact Americans in the short term.
Armored Tesla Cybertruck “War Machine” debuts at Defense Expo 2025
Tesla Megapacks chosen for 548 MWh energy storage project in Japan
