SpaceX reported a $561 million investment gain from its stake in The Boring Co. during the third quarter, according to the company's SEC filing [1]. This gain accounted for more than half of SpaceX's "other income" in the period and contributed significantly to the company's net income of just over $4 billion [1].
The Boring Co., which was created inside SpaceX in 2017 and spun out a year later, recently raised $3 billion at a $23 billion valuation with backing from the United Arab Emirates and other investors [1]. The company's stated mission is to "revolutionize transportation" by creating underground tunnels with passenger stations [1]. Currently, The Boring Co.'s only tunnels open for public use are located in Las Vegas, where passengers can travel in Tesla vehicles between the downtown convention center and various casino resorts via the Las Vegas Convention Center Loop [1].
The Boring Co. has announced approximately a dozen city projects in development [1]. Notable planned projects include the Nashville Music City Loop, a deal struck in July of last year to build about 20 miles of tunnels designed to carry paying passengers between downtown Nashville and the airport in Tesla vehicles [1]. The fast-tracked Nashville project has sparked partisan debate and recently drew new safety concerns over sinkhole risks [1]. Additionally, in the UAE, The Boring Co. plans to build over 150 kilometers (93 miles) of tunnels, including the Dubai Loop announced in February of last year [1].
Beyond The Boring Co. investment, SpaceX also purchased $151 million worth of Tesla's Megapack energy storage systems during the quarter [1]. In a notable development, Elon Musk stated on SpaceX's earnings call that he believes it would be a "good idea" for SpaceX and Tesla to merge, and indicated that both companies have created special committees to discuss a potential transaction [1].
CONCLUSION
SpaceX's $561 million investment gain from The Boring Co. demonstrates the financial interconnectedness of Musk's business empire and significantly boosted Q3 profitability [1]. The reported discussions between SpaceX and Tesla regarding a potential merger, combined with SpaceX's substantial investment in Tesla's energy storage systems, suggest deepening operational integration between the two companies [1].