The boring company can be one of Elon Musk's most promising ventures. Unlike Tesla and SpaceX, The Boring Company has yet to see most of its growth in the future.
This makes it a lucrative investment opportunity for the public. So, will Elon take The Boring Company to an IPO?
In this article, we'll take a deeper look into the finance of this ambitious venture.
IPO Plans of the Boring Company
To date, we've no sign that Elon Musk plans to IPO for The Boring Company. The founder hasn't yet filed for an IPO and hasn't revealed any official plans to go public soon.
Elon Musk IPO Companies
We can take a look at the other companies that Elon Musk runs to predict the plans for The Boring Company. Elon Musk founded his automotive company, Tesla, in 2003, but it only went public seven years later, in 2010.
As for Starlink, Musk has predicted to have an IPO in 2025 or later. This is despite the fact that Starlink was announced in 2015.
Still, these announcements are primarily based on employee reports. In all cases, it's likely that Elon Musk would wait until his companies make predictable revenues before going public.
Current Investors of The Boring Company
For now, The Boring Company isn't going public for another reason; it's already got enough funding. In April 2022, Elon Musk was able to raise $675 million through the company's latest funding round, Series C.
After this round, the company had a valuation of $5.675 billion. Besides Elon Musk, the current investors of the Boring Company include:
● Sequoia Capital
● Vy Capital
● Craft Ventures
● DFJ Growth
● Valor Equity Partners
● Founders Fund
Earlier in 2019, Elon Musk raised close to $120 million, valuing the Boring Company at $920 million.
How to Buy Stock Shares of The Boring Company?
Many investors are waiting for The Boring Company's promising stock shares. However, since the company isn't going public soon, you'll have to search on the pre-IPO market for private shares.
Even if you find available shares there, it's better to wait until they're publicly tradeable to make a safe investment.
To be frank, this might be a long wait because we've got no dates that have been officially disclosed. Knowing pre-IPO shares are a seriously risky investment is also crucial.
This is because an IPO may not take place after its inspection, so there's no guarantee that Elon Musk intends to hold an IPO for The Boring Company at any time.
As a result, you might find it difficult to sell the shares you bought.
The Boring Company Projects
Besides its boring machine technology, The Boring Company is famous for its Loop and Hyperloop projects. These revolutionary transportation systems aim to deliver passengers in Tesla cars at a speed of 150 miles per hour.
Although several Hyperloop versions across the United States have reached a dead end, there are two continuing projects. The first project is the Las Vegas Convention Center Loop (LVCC). It stretches over 1.7 miles and connects three stations, with an average ride time of two minutes.
The other project in progress is the Vegas Loop, in the same state. This tunnel network should reach 29 miles, connecting over 50 underground stations.
Is The Boring Company Making Money?
Since The Boring Company isn't publicly traded, it's not obliged to reveal its financial situation. Still, we can make some conclusions based on its current activities.
So far, The Boring Company has revolutionized the tunnel construction industry. Their research and development teams have advanced the boring machines, making their latest generation, Prufrock, only four to five times slower than a snail.
That's, ironically, six times faster than their earlier generation tunnel boring machines, Godot+. The Boring Company has also streamlined the boring process, making concrete out of dugout tunnel soil.
Therefore, despite the fact that its ambitious Hyperloop system hasn't yet seen the light, its potential as a construction company seems promising.
The Boring Company might not be currently yielding a high return on its research and development investment. However, if they plan to sell their technology or services worldwide, there will be limitless opportunities for profit-making.
Finally, will Elon take The Boring Company to an IPO? Until now, Elon Musk hasn't made any official statements about announcing an initial public offering (IPO).
It has enough funds to progress with its projects. Still, potential investors can hope that one day, the company will grow to a level requiring public investment.
The information in this article is well-researched and factual. Still, it contains opinions also, and IT IS NOT FINANCIAL ADVICE and should not be interpreted as such, do not make any financial decisions based on the information in this article; we are not financial advisors. We are journalists. You should always consult with a professional before making any investment decisions.