SpaceX books Boring Co. investment gain in quarterly earnings

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SpaceX Boring Co. investment gain

Highlights

SpaceX reports that gains from its stake in The Boring Co. significantly contribute to third-quarter profitability, revealing this in its SEC quarterly filing.
The Boring Co. raised $3 billion last month at a $23 billion valuation, backed by the United Arab Emirates and longtime Musk supporters.
SpaceX and Tesla have created special committees to discuss a potential merger, with Elon Musk stating it would be a good idea on Tuesday's earnings call.

Quarterly filing highlights investment contribution

As reported by CNBC, citing SpaceX in its quarterly financial filing with the Securities and Exchange Commission, the company says the gain from its stake in The Boring Co. is a significant contributor to third-quarter profitability. SpaceX also says in the filing that it buys $151 million of Tesla Megapack energy storage systems during the quarter.

The Boring Co. was created inside SpaceX in 2017 and was spun out a year later. The tunneling company says its goal is to revolutionize transportation through underground tunnels with stations for passenger boarding and exits.

Last month, The Boring Co. raises $3 billion at a $23 billion valuation, backed by the United Arab Emirates and other longtime Musk supporters. On SpaceX’s earnings call on Tuesday, Musk says it would be a good idea for SpaceX and Tesla to merge, adding that both companies have created special committees to discuss a potential transaction.

Tunnel projects shape transport and infrastructure outlook

The Boring Co. has announced about a dozen city projects, but its only tunnels now open for public use are in Las Vegas. There, passengers travel in Tesla vehicles between the downtown convention center and several casino resorts through the Las Vegas Convention Center Loop.

In July of last year, the company strikes a deal to build about 20 miles of tunnels in Nashville, Tennessee. The Music City Loop is designed to carry paying passengers between downtown and the airport in Tesla vehicles, but the fast-tracked project sparks a partisan feud after approval and draws new safety concerns this week over sinkhole risks.

In the United Arab Emirates, The Boring Co. plans to build more than 150 kilometers, or 93 miles, of tunnels, including the Dubai Loop project announced in February of last year. The project pipeline underscores how SpaceX’s investment exposure is tied not only to financial revaluation but also to the execution prospects of urban transport infrastructure.

We previously reported on Elon Musk’s pledge that SpaceX would reimburse users for losses if Grok makes a financial mistake during a purchase or leaks card details. The article noted that, unlike many other AI-agent terms that place transaction liability on users, the scope of SpaceX’s promised coverage was left unclear, underscoring the growing debate over who bears the risk as AI agents handle payments and bookings.

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