SpaceX disclosed on Thursday that its investment in Elon Musk's The Boring Co. generated a $561 million gain during the third quarter, a figure that drove more than half of the company's other income for the period. The boost contributed to SpaceX's net income, which reached just over $4 billion, according to the company's quarterly financial filing with the Securities and Exchange Commission.
The Boring Co., which originated inside SpaceX in 2017 before spinning out in 2018, describes its mission as revolutionizing transportation through underground tunnels equipped with boarding stations. Last month, the company secured $3 billion in funding at a $23 billion valuation, a round backed by the United Arab Emirates and other long-time supporters of Musk.
Despite announcing roughly a dozen city projects, Boring Co.'s only currently operational public tunnel system is the Las Vegas Convention Center Loop. This network allows passengers to travel in Tesla vehicles between the downtown convention center and various casino resorts. In July of last year, the company signed a deal to construct approximately 20 miles of tunnels in Nashville, Tennessee, known as the Music City Loop. Designed to transport paying passengers between downtown and the airport in Tesla vehicles, the fast-tracked project has faced political controversy since its approval and recently drew new safety concerns regarding sinkhole risks.
Internationally, Boring Co. is planning over 150 kilometers, or 93 miles, of tunnels in the UAE. This includes the Dubai Loop, a project announced in February of last year.
Beyond its Boring Co. stake, SpaceX reported purchasing $151 million worth of Tesla's Megapack energy storage systems during the quarter. On Tuesday's earnings call, Musk stated that he believes a merger between SpaceX and Tesla would be a good idea. He confirmed that both companies have established special committees to discuss a potential transaction.