Tesla founder/CEO Elon Musk expects one of his ventures, Boring Company, to complete a commercial tunnel project in Las Vegas by 2020. Musk founded the venture in 2016 to serve as an infrastructure and tunnel construction services company.
As for the Las Vegas project itself, the company’s website said, the “Las Vegas Convention and Visitors Authority (LVCVA) Board of Directors approved a contract with The Boring Company to design and construct a twin-tunnel Loop system for the Las Vegas Convention Center (LVCC). The project is currently under construction. LVCC Loop will provide fast and convenient transportation for convention and trade show attendees across the LVCC campus.”
The project is essentially aimed at alleviating traffic congestion in downtown Las Vegas via high speed loop and Hyperloop–an open source train design–transportation systems.
“The company has completed its project Test Tunnel, located in Hawthorne, California, and other ongoing projects include the Chicago Express Loop and the East Coast Loop from Washington D.C. to Baltimore,” a CNBC report on Boring Company noted. “In April the U.S. Transportation Department issued a draft environmental assessment for a Washington, D.C.- Baltimore tunnel, the first step in a governmental review of the project from Boring Co. In July, Boring Company raised about $117 million in a round of funding from 20 unnamed investors after offering to sell about $120 million in equity.”
A Twitter user asked Musk directly about when he expects the commercial tunnel to complete:
Hopefully fully operational in 2020
— Elon Musk (@elonmusk) December 28, 2019
Transportation ETF Exposure
For investors looking for broad-based exposure to the transportation sector, they can look at the following funds:
- SPDR S&P Transportation ETF (NYSEArca: XTN): seeks to provide investment results that correspond generally to the total return performance of an index derived from the transportation segment of a U.S. total market composite index. The index represents the transportation segment of the S&P Total Market Index (“S&P TMI”).
- Direxion Daily Transportation Bull 3X Shares (NYSEArca: TPOR): seeks daily investment results equal to 300 percent of the daily performance of the Dow Jones Transportation Average. The index measures the performance of large, well-known companies within the transportation industry.
- iShares Transportation Average ETF (NYSEArca: IYT): seeks to track the investment results of the Dow Jones Transportation Average Index composed of U.S. equities in the transportation sector. The underlying index measures the performance of large, well-known companies within the transportation sector of the U.S. equity market.
For more market trends, visit ETF Trends.