The Boring Company is conducting a study for a potential tunnel project in Nevada, aiming to connect Reno with the Tesla Gigafactory at the Tahoe-Reno Industrial Center. This initiative is part of broader efforts to alleviate traffic congestion and reduce accidents on Interstate 80.
Project Overview
The Economic Development Authority of Western Nevada (EDAWN), a non-profit organization focused on economic growth, compensated Boring Company $50,000 in October to develop conceptual designs and a feasibility report. The proposed tunnel would offer an alternative transportation route to the Tahoe-Reno Industrial Center, a large business complex hosting companies such as Tesla and Panasonic. Specific details, including the tunnel's precise length, projected cost, and intended vehicle types, are not yet publicly known.
Traffic and Development Context
Traffic volume and accident frequency on I-80 have increased, particularly following the construction of new data centers. The Industrial Center employs approximately 22,000 individuals daily, with about 70% residing in Reno or Sparks, Nevada. Between January and July 2025, vehicle traffic on segments of the Interstate during peak hours doubled. The Nevada Department of Transportation plans to widen the highway, with construction anticipated to begin in late 2027. Local transportation officials report an average of one accident every two days on this section of I-80.
Alternative Solutions and Company Involvement
State groups are considering various transportation solutions. Tesla and Panasonic have communicated with the Nevada Governor’s Office regarding these issues and are sponsoring a separate study for a commuter rail system utilizing existing freight rail lines. These companies also provided funding to EDAWN for the exploration of additional options, which led to the Boring Company tunnel study.
The Boring Company's Track Record and Challenges
Boring Company has expressed interest in a Reno-Gigafactory tunnel since at least 2019. The company currently operates a 4-mile tunnel system at the Las Vegas Convention Center, which uses Teslas driven by company personnel. The implementation of its transportation projects has faced challenges, including securing political and regulatory approvals. The company has also addressed public concerns, including a fine for wastewater disposal and injuries to firefighters during a training exercise, which prompted an inquiry from a Nevada Congresswoman to the Governor's office. The effectiveness of a potential Reno tunnel in managing congestion may depend on its operational model, whether as a mass transit system or for individual vehicle use.
Stakeholder Engagement
Discussions regarding the potential commuter rail system along I-80 have involved over 20 stakeholders, including local city and county officials. However, fewer parties have been included in conversations about the potential Boring Company project. The Regional Transportation Commission of Washoe County confirmed it did not commission or fund the tunnel study, but expressed openness to private transportation solutions that could improve safety and reduce traffic.