Elon Musk’s tunneling venture, The Boring Company, has been investigating the possibility of constructing a tunnel system that would connect Reno to Tesla Gigafactory Nevada, as revealed in documents obtained by Fortune. The initial stages of this feasibility study were funded by the Economic Development Authority of Western Nevada (EDAWN), a nonprofit organization collaborating with the state to attract and expand businesses, in response to the escalating traffic congestion and accidents along Interstate 80.
The documents obtained by Fortune disclosed that The Boring Company received a sum of $50,000 in October to develop conceptual designs and a feasibility report for a tunnel beneath a nine-mile section of highway leading to Gigafactory Nevada. This proposed tunnel was part of a series of transportation options being considered to address the mounting congestion and safety issues plaguing Interstate 80, which serves the Tahoe-Reno Industrial Center. This industrial hub is home to major corporations such as Tesla and Panasonic, both of which have engaged with the Nevada Governor’s Office to explore potential transportation solutions.
In addition to The Boring Company’s tunnel project, Tesla and Panasonic have shown support for a separate study on a commuter rail system that would utilize existing freight rail tracks alongside the Interstate. The specifics of The Boring Company’s feasibility report, including the length of the tunnel, estimated costs, and the potential use of autonomous Teslas, have not been disclosed at this time.
The surge in traffic and accidents along I-80 has been attributed to the influx of data centers and new businesses within the 107,000-acre industrial center. State transportation data indicates a significant increase in the number of vehicles traveling along certain segments of the highway during peak hours, with a doubling of traffic observed between January and July 2025 alone. Approximately 22,000 employees commute to the industrial park daily, with a substantial portion working at the Tesla and Panasonic facilities within the Gigafactory Nevada complex.
Bill Thomas, who oversees the Regional Transportation Commission of Washoe County, expressed concerns about the safety issues in the area, highlighting the frequency of accidents occurring along the Interstate. He voiced his support for any initiatives that could alleviate traffic congestion and enhance safety on the highway, emphasizing the importance of finding solutions to these pressing issues.
As discussions continue regarding potential transportation solutions for the region, the collaboration between The Boring Company, state authorities, and major businesses like Tesla and Panasonic underscores the shared commitment to addressing the challenges posed by the growing traffic demands in the area. The development of innovative transportation infrastructure, such as tunnels and commuter rail systems, could offer promising solutions to enhance mobility and safety for commuters and employees within the industrial center.