Exclusive: Elon Musk’s Boring Co. is studying a tunnel pr...

What’s Happening

So basically The surge of traffic, and accidents, on the highway that leads to the burgeoning industrial center in northern Nevada is driving a search for alternatives.

Elon Musk’s tunneling startup Boring company is working with a Nevada state-affiliated group to study a tunnel project that would go under the nine-mile stretch of highway from Reno to Tesla’s Gigafactory, according to documents reviewed by Fortune . Recommended Video The Economic Development Authority of Western Nevada (EDAWN), a non-profit that recruits companies to do business and expand in the state, paid Boring company $50,000 in October to draw up conceptual designs and conduct a feasibility report for a new transportation alternative to the Tahoe-Reno Industrial Center, the mega-business complex that houses Tesla’s Gigafactory, according to a copy of the study invoice, which was obtained by Fortune via a Freedom of Information Act Request. (it feels like chaos)

The potential tunnel project is one of several options various state groups are considering to alleviate the steep rise in traffic and accidents along Interstate 80 as more data centers and companies move into the 107,000-acre Industrial Center east of Reno and Sparks, Nev.

The Details

Tesla and Panasonic , the two largest companies in the Center, have been in contact with the Nevada Governor’s Office since at least last spring about potential transportation solutions, according to emails, which were also obtained by Fortune via the FOIA request. Both Tesla and Panasonic are working with the local transportation agency to sponsor an ongoing study for a commuter rail system that would run on the freight rail next to the interstate.

They also provided funding to EDAWN to look at other options, according to an email from Chris Reilly, Nevada Governor Joe Lombardo’s former infrastructure director, who introduced a Boring company executive to leaders at Tesla and Panasonic to discuss the tunnel study.

Why This Matters

The business implications here could be significant in the coming months.

This reflects broader trends we’re seeing in the business world right now.

The Bottom Line

This story is still developing, and we’ll keep you updated as more info drops.

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