Elon Musk’s tunneling startup, The Boring Company, is exploring the possibility of creating a tunnel system that would connect Reno to Tesla Gigafactory Nevada, according to documents obtained by Fortune. The initial feasibility work for this project was funded by the Economic Development Authority of Western Nevada (EDAWN), as officials sought solutions to the increasing traffic congestion and accidents along Interstate 80.
The Boring Company received $50,000 in October to develop conceptual designs and a feasibility report for a tunnel that would run beneath a nine-mile section of highway leading to Gigafactory Nevada. EDAWN, a nonprofit organization that collaborates with the state to attract and expand businesses, provided the funding for this study.
The proposed tunnel is one of several transportation options being considered to address the growing congestion and safety issues along Interstate 80, which serves the Tahoe-Reno Industrial Center. This industrial park is home to major employers such as Tesla and Panasonic, both of which have been in discussions with the Nevada Governor’s Office about potential transportation solutions.
In addition to The Boring Company’s tunnel project, Tesla and Panasonic have expressed support for a separate commuter rail study that would utilize existing freight rail alongside the Interstate. However, specific details about The Boring Company’s feasibility report, including the tunnel’s length, cost, and the potential use of autonomous Teslas, have not been disclosed.
Traffic and accidents along Interstate 80 have been on the rise, particularly with the influx of data centers and new businesses in the 107,000-acre industrial center. State transportation data indicates that the number of vehicles traveling certain sections of the highway during peak hours doubled between January and July 2025. With approximately 22,000 employees commuting to the industrial park daily, safety concerns have become a significant issue.
Bill Thomas, who oversees the Regional Transportation Commission of Washoe County, emphasized the importance of addressing traffic congestion and safety risks on Interstate 80. He mentioned that there is an accident occurring roughly every other day in the area, underscoring the urgent need for solutions to alleviate these issues.
While Thomas clarified that the Regional Transportation Commission is not directly involved in the tunnel project, he expressed support for any initiatives that could improve traffic flow and enhance safety on the Interstate. He acknowledged that private sector solutions, such as The Boring Company’s tunnel proposal, could be beneficial in addressing the challenges posed by the increasing traffic volume and accident rates in the region.