Elon Musk’s Boring Company studying potential Giga Nevada tunnel: report

Elon Musk’s tunneling startup, The Boring Company, has been studying a potential tunnel system connecting Reno to Tesla Gigafactory Nevada, as per documents obtained by Fortune. The early-stage feasibility work was funded by a state-affiliated economic group as officials searched for alternatives to worsening traffic and accidents along Interstate 80.

Potential Giga Nevada tunnel

Documents reviewed by Fortune showed that The Boring Company received $50,000 in October to produce conceptual designs and a feasibility report for a tunnel beneath a nine-mile stretch of highway leading to Gigafactory Nevada. The payment came from the Economic Development Authority of Western Nevada (EDAWN), a nonprofit that works with the state to attract and expand businesses.

The proposed tunnel was one of several transportation alternatives being explored to address rising congestion and accidents along Interstate 80, which serves the Tahoe-Reno Industrial Center east of Reno and Sparks. The massive industrial park houses major employers, including Tesla and Panasonic, both of which had been in contact with the Nevada Governor’s Office regarding transportation solutions.

Emails obtained through public records requests showed that Tesla and Panasonic have also supported a separate commuter rail study that would use existing freight rail alongside the Interstate. It remained unclear whether The Boring Company’s feasibility report had been completed, and key details for the potential project, including tunnel length, cost, and whether autonomous vehicles would be used, were not disclosed.

Relieving I-80 congestion

Traffic and accidents along I-80 have increased sharply as data centers and new businesses moved into the 107,000-acre industrial center. State transportation data showed that the number of vehicles traveling certain stretches of the highway during peak hours doubled between January and July 2025 alone. Roughly 22,000 employees commute daily to the industrial park, with nearly 8,000 working for Tesla and more than 4,000 for Panasonic at the Giga Nevada complex.

Bill Thomas, who runs the Regional Transportation Commission of Washoe County, shared his thoughts about safety concerns in the area. “At this point in time, there’s about (one accident) every other day,” he said. He also noted that he is supportive of any projects that could alleviate traffic and accidents on the Interstate. 

“We’re not paying for it. I’m not involved in it. But I understand there are conversations exploring whether that could be done. If there’s a private solution that helps the problem and improves safety, as far as I’m concerned, more power to them,” Thomas stated. 

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