While the robotaxi wars heat up with wins and regulatory setbacks, Elon Musk's tunneling venture The Boring Company is closing in on a $4 billion funding round, according to TechCrunch. The valuation is $20 billion. Musk is betting that boring holes in the ground will be as valuable as getting autonomous cars on them.
The timing matters. According to TechCrunch Mobility's coverage, the autonomous vehicle industry is split between federal regulators advancing the technology and state officials restricting it. The National Highway Traffic Safety Administration handed Zoox a temporary exemption from eight federal motor vehicle safety standards, clearing the way for paid robotaxi rides. First stop: Las Vegas.
While Zoox celebrates, Waymo and other robotaxi operators face scrutiny over their vehicles blocking emergency responders. San Francisco Mayor Daniel Lurie called out the chaos after Waymo robotaxis became immobile during July 4 traffic and worsened gridlock. Rep. Kevin Mullin (D-Calif.) is now pushing federal legislation to establish minimum national safety standards for autonomous vehicles.
The robotaxi space is fragmenting. Federal regulators want speed; cities want safety. Zoox gets its win in Vegas, but the industry faces a whack-a-mole game of local complaints and congressional pressure. It is no longer a level playing field.
Musk's Boring Company tells a different story: when autonomous vehicles get too complicated, capital moves elsewhere. A $20 billion valuation for a tunneling company signals investor confidence in alternative transportation infrastructure, even as the robotaxi route gets clogged with red tape and regulatory drama. Musk's approach has always been to diversify, avoid bureaucratic tangles, and move forward.
Lucid Motors snagged another Saudi cash infusion this week. Prince Al Waleed bin Talal Al Saud bought 5% of the luxury EV maker for a little over 19 million shares. The billionaire prince keeps betting on Lucid as the company fights for survival in a crowded electric car market.
Capital is still flowing into transportation plays, but it is voting with its feet. Federal momentum cannot overcome local gridlock—political or traffic-wise. Some investors are clearly hedging bets across robotaxis, tunnels, and luxury EVs all at once.
