Las Vegas Backs Elon Musk’s $49 Million Underground Transit System

Tesla CEO Elon Musk speaks during the unveiling of the new Tesla Model Y in Hawthorne on March 14, 2019. (Credit: Frederic J. Brown / AFP / Getty Images)

Tesla CEO Elon Musk speaks during the unveiling of the new Tesla Model Y in Hawthorne on March 14, 2019. (Credit: Frederic J. Brown / AFP / Getty Images)

A company backed by tech billionaire Elon Musk has been granted a nearly $49 million contract to build a transit system using self-driving vehicles underneath the Las Vegas Convention Center.

The board of directors of the Las Vegas Convention and Visitors Authority approved the contract Wednesday with The Boring Company, the Musk-backed enterprise based in Hawthorne, California.

The company plans to construct a twin tunnel system running less than a mile (1.6 kilometer) long.

The system will use self-driving electric vehicles capable of transporting up to 16 people.

The system also will include three underground stations and a pedestrian tunnel.

The company plans to start construction in September and debut the system by December 2020.

The authority will reimburse the company as it completes certain stages of the project.

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