Elon Musk’s The Boring Company has seen its valuation surge by over 22% after a recent employee share sale.
According to a report from The Information, citing two unnamed sources, The Boring Company sold shares owned by employees and investors at $24 each, an increase of over 22% compared to the $19 per share the company was able to achieve in a Series C funding round last year.
One of the sources said The Boring Company allowed investors to purchase up to $20 million in secondary shares as part of the sale, known as a tender offer.
This gives The Boring Company an implied valuation of over $7 billion, a substantial increase from the $5.675 billion valuation after last year’s funding round.
The increased valuation reflects the company’s improved prospects and is a strong show of confidence from investors and employees alike, who are buying shares at a price significantly higher than in the previous funding round. The Boring Company’s Series C funding round last year was led by Vy Capital and Sequoia Capital, amassing $675 million.
While The Boring Company now has a valuation of over $7 billion, it still has a long way to go until it reaches what CEO Elon Musk thinks it could be worth by the end of the decade. Last month Musk commented on X that the company could be worth as much as $1 trillion by 2030, but one major obstacle to reaching that sky-high valuation – getting the required permits from local authorities.
The Boring Company got off the ground with its inaugural project in February 2017, and according to their website have successfully finished five projects to date: the Las Vegas Convention Center (LVCC) Loop, Resorts World Connector, Vegas Loop, the R&D tunnel, and the Hyperloop Test Track. Currently the company is expanding the Las Vegas Loop, which was recently approved for 65 miles of tunnels and 69 planned stations.