Elon Musk’s Boring Co. raised $113 million in equity to dig tunnels and develop a high-speed transportation system known as the hyperloop.
The startup disclosed the investment in a U.S. securities filing on Monday. The financing round included 31 unnamed investors, according to the Securities and Exchange Commission document. More than 90 percent of financing came from Musk, and the rest from early employees, the Boring Co. said, adding that no venture capitalists or outside investors participated.
The private stock sale is the first deal disclosed with the SEC to date for the year-old venture. Musk has been helping fund his underground transit plans using less traditional methods, namely the sale of merchandise. Musk fans bought 50,000 Boring Co. hats and 20,000 flamethrowers. The fiery weapon generated some controversy and $10 million in revenue early this year.
Musk, the billionaire technologist who also runs Tesla Inc. and Space Exploration Technologies Corp., first unveiled his idea for a hyperloop — a tube-based system to move people from San Francisco to Los Angeles in a half hour — in a 57-page white paper in 2013 because he was frustrated with California’s plans for a high-speed rail system. Boring Co. was ultimately founded to “solve the problem of soul-destroying traffic,” and the company’s website said it’s pursing projects in Los Angeles, Chicago and the Baltimore-Washington area.