The Financial Pickle Facing Elon Musk’s Las Vegas Loop System

The Financial Pickle Facing Elon Musk’s Las Vegas Loop System

Restrictions imposed by Nevada regulators are making it harder for the Boring Company (TBC) to achieve contractual goals for the LVCC loop of LOR Mask’s first underground transportation system. The Las Vegas Convention Center (LVCC) loop system is expected to use more than 60 autonomous high-speed vehicles to transport 4,400 passengers an hour in the exhibition halls.

However, TechCrunch has been told that Clark County regulators have so far approved only 11 man-powered vehicles, set strict speed limits, and banned the use of board-collision-avoidance technology as part of the Tesla’s “fully self-driving” autopilot development. Has a driver support system. The Tesla autopilot system does not technically rise to the level of fully autonomous, although it is branded as such. It is an advanced driver assistance system that can automate certain tasks – according to exchanges between Tesla and California regulators – even considered internally. The LVCC’s parent body, the Las Vegas Convention, and the visitor authority have reached an agreement to encourage and fulfill Musk commitment. The deal is for a fixed price and TBC will have to hit certain milestones to pay all its money. 

The Financial Pickle Facing Elon Musk’s Las Vegas Loop System
The Financial Pickle Facing Elon Musk’s Las Vegas Loop System

The contract pays for various points in the process, such as completing the bare tunnels, completing the entire operational arrangements, testing deadlines and safety reports, and then carrying passengers as it appears. The final three milestones relate to how many passengers it can carry. If the loop could carry 2,200 passengers an hour, TBC would receive $ 4.4 million, the same payment for 3,300 hits and 4,400 passengers an hour. Together, these power payments represent 30% of the fixed-price contract.

Instead of carrying more than 4,000 passengers per hour, this restricted system can limit capacity to less than a thousand, carrying TBC to huge fines for missing contractual targets. TBC does not earn revenue from charging passengers (rides are free). For example, during a major trade show such as CES, LVCC pays TBC $30,000 per day for operating and managing the technology, according to a new management agreement entered into by TechCrunch. However, the original agreement signed by TBC in 2019 specified a $300,000 fine for each major conference where TBC could not move 4,000 people per hour.

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