Boring Company, Elon Musk’s startup in the transportation industry. Secured a $ 48.7 million contract to build an underground system called the LVCC Loop; It will be beneath the Las Vegas Convention Center, where the CES fair is held annually. Passengers could be brought in a modified Model X electric car that would accommodate up to 16 people.
CEO Elon Musk says the Boring Company will begin excavations in two months with the goal of ending this first phase by the end of 2019. The tunnel should be ready by January 2021 in time for CES.
Called the Loop, the Boring Tunnel was designed to form an underground transit system that uses modified electric cars from Tesla to drive pedestrians through the cities. This is the company’s first commercial contract.
The so-called LVCC Loop may shorten congressional walk times. The journey between New Exhibit Hall and North / Central Hall, for example. Which is about 15 minutes away, with transportation from The Boring Company will only take 1 minute.
According to The Guardian, the full amount will be paid to Musk’s company in parts, depending on delivery. It would be $ 2.5 million to excavate the first station and $ 3.2 million to complete the initial 30 meters of the tunnel.
The figures will increase as the first stand-alone electric vehicles begin testing around 6 weeks before the start of the system by the end of 2020. The final payment will depend on the demonstration that the company can carry 4,400 passengers per hour day after day.
The contract specifies that if the system is unable to provide full passenger capacity during its first 18 months of operation. The Boring Company will have to pay a fine of $ 300,000 per event up to a total of $ 4.5 million.