Elon Musk’s tunneling startup The Boring Company is working with a state-owned group in Nevada to study a tunnel project that would go under nine miles of highway from Reno to Tesla’s Gigafactory, according to documents reviewed. wealth.
The Economic Development Authority of Western Nevada (EDAWN), a nonprofit that recruits companies to operate and expand in the state, paid The Boring Company $50,000 in October to draft conceptual designs and prepare a feasibility report for new transportation alternatives at the Tahoe-Reno Industrial Center, the massive commercial complex where Tesla’s Gigafactory is located. wealth Via Freedom of Information Act request.
The potential tunnel project is one of several options state groups are considering to alleviate a dramatic increase in traffic and accidents along Interstate 80 as more data centers and companies move into the 107,000-acre industrial hub east of Reno and Sparks, Nevada. Tesla and MatsushitaTwo of the center’s largest companies have been in contact with the Nevada governor’s office about potential transportation solutions since at least last spring, according to emails. wealth Via FOIA request. Both Tesla and Panasonic are working with local transportation agencies to sponsor an ongoing study of a commuter rail system that would run on freight rail alongside the interstate. Chris Reilly, Nevada Gov. Joe Lombardo’s former infrastructure director, said in an email that they are also providing funding to EDAWN to study other options. Chris Reilly introduced a Boring Company executive to leaders of Tesla and Panasonic to discuss tunneling research.
It is unclear whether the report has been completed, as well as the specific details of the report, including the exact length of the proposed tunnel, the cost of the project and the types of vehicles envisioned for the tunnel, including potential self-driving cars——Unable to learn.
The Boring Company currently operates a small Tesla tunnel under the Las Vegas Convention Center and has been trying to build a tunnel to the Tesla Gigafactory since at least 2019. A study released by the Nevada Department of Transportation seven years ago said, “The Boring Company is very interested in building a loop tunnel under Interstate 80 to the Tesla Gigafactory, but needs support from NDOT.”
The Boring Company’s approach is novel, with small, single-lane tunnels built specifically for electric cars, and the startup founded by Elon Musk has After struggling for many years Gain the political and regulatory support needed to undertake major transportation projects. Even in Nevada, where the Boring Company has successfully opened a tunnel system and started chauffeuring passengers with Teslas in Las Vegas, the company has only completed 4 miles of operational tunnels and is currently experiencing delays as it attempts to obtain the necessary approvals to excavate on land outside the county and into the city of Las Vegas. The company also took into account strong community opposition over safety and environmental concerns during tunnel construction.
The prospect of a Reno tunnel is still very conceptual, and while more than 20 stakeholders, including city and county officials in the area, have been involved in discussions about a potential commuter rail line along Interstate 80, few of them are involved in the Boring Co.’s potential project, according to two people who are regularly briefed on the progress of rail studies, including Bill Thomas, head of the Washoe County Regional Transportation Commission, which oversees the commuter rail study and road study.
“We didn’t commission it. We didn’t pay for it. I wasn’t involved in it. But I know there were discussions about whether it could be done,” Thomas said. He noted that while he didn’t understand what the plan was, he supported any transportation alternatives that would help alleviate congestion and accidents along the interstate. “If there’s a private solution that can help solve the problem and improve safety, more power to them as far as I’m concerned.”
Representatives for Tesla, Panasonic, EDAWN and the governor’s office did not respond to requests for comment for this article. Riley declined to comment.
traffic surge
Accidents and traffic have been increasing on Interstate 80, which has two lanes in both directions, especially since several data centers were built last summer as part of Nevada’s infrastructure effort. push Attract more artificial intelligence companies to the state. According to the March 2025 Commuter Rail Research Update, approximately 22,000 employees work in the industrial hub every day, and 70% of them live in Reno or Sparks, Nevada. wealth. Nearly 8,000 of them work at Tesla and more than 4,000 at Panasonic, according to a second update in October.
While the state Department of Transportation is currently widening the highway, the expansion won’t begin until late 2027 and will take several years to complete. Emails show companies at the center have asked the governor’s office to help them come up with alternative solutions. The number of vehicles traveling on the interstate during rush hour doubled from January to July 2025, according to data pulled from the Nevada Department of Transportation, which was shared with Reilly, a senior facilities manager at Tesla and former infrastructure director for Nevada Gov. Joe Lombardo. “We are looking for creative ways to improve the Waltham ramp,” an NDOT employee wrote in an email to Tesla managers and Reilly.
RTC Washoe, the Western Nevada Regional Transportation Commission, began prioritizing transportation alternatives to Interstate 80 about two years ago, Thomas said. “Right now, there’s an incident happening about every other day,” Thomas said.
How effective Boring Co’s tunnels will be at easing congestion is unclear and may depend on whether the tunnels are designed as a mass transit system, with a shared, centrally managed fleet of vehicles for commuters to enter and exit, or whether individuals drive their own cars through the tunnels. The Boring Company’s 4-mile Las Vegas Loop is capable of transporting thousands of passengers each day during major meetings at the convention center, but the vehicles are operated by dedicated drivers hired by the company. When individuals drive their own cars in tunnels, the potential for accidents and other disruptions may increase, as well as increasing the risk of severe backlogs in single-lane tunnels.
The Boring Company’s involvement could also lead to public criticism — especially as the startup is fined Wastewater dumped in Las Vegas and rescued by firefighters after burn Chemicals in tunnels during training exercises. A Nevada congresswoman recently sent a letter request letter Sent a letter to Nevada Governor Joe Lombardo requesting more information about both incidents and requesting more information about his office’s involvement in Nevada OSHA’s efforts to rescind a citation issued to The Boring Company last year.