● Covered by 1 source · 1 reportLow impact1 neutral
SpaceX Reports $561 Million Investment Gain from The Boring Co. Stake
Key points
- SpaceX gained $561 million from its Boring Co. stake in Q3.
- The gain accounted for over half of SpaceX's "other income".
- SpaceX's net income reached over $4 billion.
- Boring Co. was spun out from SpaceX in 2018.
Investment Gain Details
SpaceX announced an investment gain of $561 million during the third quarter, stemming from its ownership stake in The Boring Co. This figure represented more than 50% of SpaceX's total "other income" for the quarter.
The substantial gain contributed to SpaceX's overall net income, which reached just over $4 billion for the period, according to the company's financial filing with the Securities and Exchange Commission.
The Boring Co. Background
The Boring Co. originated within SpaceX in 2017 before being spun out as a separate entity a year later. Its stated mission is to develop underground tunnels for transportation.
Last month, The Boring Co. secured $3 billion in funding, valuing the company at $23 billion. Investors included the United Arab Emirates and other long-term supporters of Elon Musk.
Current and Planned Projects
While The Boring Co. has announced approximately a dozen city projects, its only operational public tunnels are in Las Vegas. The Las Vegas Convention Center Loop transports passengers in Tesla vehicles between the convention center and various casino resorts.
In July of last year, The Boring Co. agreed to construct about 20 miles of tunnels in Nashville, Tennessee, known as the Music City Loop. This project aims to transport paying passengers between downtown and the airport in Tesla vehicles. Additionally, The Boring Co. plans to build over 150 kilometers of tunnels in the UAE, including the Dubai Loop announced in February of last year.
Related Transactions and Discussions
SpaceX's filing also indicated a purchase of $151 million worth of Tesla's Megapack energy storage systems during the same quarter. Elon Musk commented on a recent earnings call that a merger between SpaceX and Tesla would be a "good idea," and both companies have established special committees to explore a potential transaction.
✨ This summary was generated by AI from the outlets' reporting listed below. It is not independently verified and may contain errors — check the original sources. How BrevFeed works →
The daily brief
One email each morning: the day's tech stories, clustered across outlets and summarized. No account needed.
One email a day. Unsubscribe in one click, any time.
Today's brief
Spend a few minutes, get the whole day. Every topic's top stories in one hands-free rundown — listen, watch, or read the transcript.
▶ Play today's brief
New every morning, and the back catalogue is archived by date.
Reporting from
SpaceX recorded a $561 million investment gain in Q3 from its stake in The Boring Co., contributing over half of its "other income" for the period. This gain boosted SpaceX's net income to over $4 billion, as reported in its SEC filing.