Controversial billionaire Elon Musk’s Boring Co. has been pressing ahead with the expansion of an ambitious underground transit project beneath the Las Vegas Strip, despite facing growing opposition.
Key Takeaways
- Elon Musk’s Boring Company is continuing to expand the Vegas Loop network
- The plan envisages 104 stations and 68 miles of tunnel
- Musk faces criticism from Las Vegas patrons over safety concerns
Musk, whose company X recently partnered with Polymarket, secured a contract in 2019 to develop the Las Vegas Convention Centre Loop to relieve traffic in the city, where the tunnels would be filled with self-driving Teslas that tourists can take, for a fee, across the strip.
The company has recently completed a new tunnel crossing under Las Vegas Boulevard, linking the Wynn Golf Club area with land earmarked for Wynn West.
Known as the Vegas Loop, it is a much-reduced version of the originally proposed Hyperloop concept. Initially serving only the Las Vegas Convention Center through a short 1.7-mile route, the system now connects Resorts World Las Vegas, the Convention Center, and select other sites.
Since opening, the company says that the network has already carried over three million passengers across eight stations. In the long term, the plan has been approved by Clark County and the City of Las Vegas for 68 miles of tunnel and 104 stations, moving up to 90,000 passengers per hour between key destinations including Harry Reid International Airport, Allegiant Stadium, and downtown Las Vegas.
However, the project has faced mounting criticism, with former Las Vegas Mayor Carolyn Goodman voicing concerns about safety and accessibility. Assistant professor of public policy at UNLV, Ben Leffel, has also warned that as a fully private system, it lacks the oversight that would be standard in public transit.
For now, traffic on the Strip remains as snarled as ever, with each new tunnel offering incremental relief rather than sweeping change.
Las Vegas resorts resist calls to scrap fees amid slump
Meanwhile, the city’s tourism industry is confronting sharp declines in visitation and hotel demand. Visitor numbers have fallen 8% so far this year compared with 2024, with July marking the second consecutive month of double-digit losses.
Industry consultant Desiree Stokes Blum has urged resorts to suspend nightly resort fees, which currently run between $35 and $55, arguing the charges discourage potential visitors. So far, only Resorts World Las Vegas has temporarily eliminated its fees and parking charges, while major players MGM Resorts International and Caesars Entertainment have stayed silent.
Data shows that room occupancy has slipped to 76.1%, average daily rates are down 3.1% to $155, and passenger traffic through Harry Reid International Airport has fallen 4.4%.
Some insiders point to visitor frustration with steep pricing and shrinking services, while international operators say explaining resort fees to foreign guests has become a liability.
The Federal Trade Commission recently introduced new disclosure rules requiring hotels and ticket sellers to display full pricing, including resort fees, at the point of purchase. But, with no mandate to eliminate the charges, Las Vegas resorts appear unlikely to reverse course. For now, the city faces the prospect of a subdued 2025, with hopes pinned on a rebound in 2026.
