Tech

Elon Musk's Boring Co. raises $120 million to build more tunnels

Key Points
  • Elon Musk's Boring Co. has raised $120 million in new funding, according to Bloomberg.
  • Future Ventures, led by Tesla and SpaceX board member Steve Jurvetson, participated in the round alongside other investors.
  • It comes after Boring Co. recently landed a $48.6 million contract to develop a loop in Las Vegas.
Tesla founder Elon Musk speaks at the unveiling event by "The Boring Company" for the test tunnel of a proposed underground transportation network across Los Angeles County, in Hawthorne, California, December 18, 2018.
Robyn Beck | Pool | Reuters

Elon Musk's Boring Co. has raised $120 million in fresh funding, Bloomberg reported Thursday.

The funding, which was confirmed to CNBC by a company spokesperson, will reportedly go toward the continued development of underground tunnel systems, and comes about two months after Boring Co. landed a $48.6 million contract to build a mile-long people-mover at the Las Vegas Convention Center. Construction on that project is expected to begin on the project as early as September.

Much of the publicity Boring Co. has attracted to date is related to the sale of company-branded flamethrowers and hats, which has helped bring in capital. The flamethrowers were popular among consumers, selling out within days, but also drew the ire of lawmakers in New York and elsewhere.

The financing round represents Boring Co.'s first outside investment, according to Bloomberg, which cited a securities filing that authorized the sale of $120 million in stock. Investors include 8VC and Draper Fisher Jurvetson.

Future Ventures, the firm led by Tesla and SpaceX board member Steve Jurvetson, was a "small investor" in the funding round, but the spokesperson didn't specify how much it invested. Jurvetson's then-venture firm, DFJ, was also an early investor in self-driving startup Zoox. Last March, Tesla sued Zoox, alleging it stole company information. Future Ventures didn't respond to a request for comment.

WATCH: Boring Co. raises $113 million in VC funding

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Elon Musk's Boring Co. raises $113 million in venture capital funding