After Losing 40% Of His Net Worth In A Month, Elon Musk Attempts To Raise $4 Billion For Another Company - 24/7 Wall St.

What the report says

24/7 Wall St. reported that Elon Musk is seeking roughly $4 billion in new financing for The Boring Company, his tunnel-construction business, at an estimated valuation of about $20 billion. The article said the round had not closed, terms could still shift, and Musk had not publicly commented. The reported valuation would be more than three times the company’s 2022 valuation of $5.7 billion.

The outlet framed the fundraising effort against a sharp fall in Musk’s paper wealth. Citing Benzinga’s tracking, it said his net worth dropped from about $1.32 trillion to roughly $832 billion in a month, a decline of around 37%. The article attributed much of that loss to a steep fall in SpaceX shares and additional pressure from Tesla, which 24/7 Wall St. said missed second-quarter earnings expectations, posted negative free cash flow and saw its shares fall sharply in the week after results.

The report said The Boring Company remains comparatively low-profile despite operating the Vegas Loop and pitching or announcing projects in several cities, including Nashville, Dubai, Baltimore, Chicago and Los Angeles. It noted that some city-level tunnel plans have stalled or been dropped, while the company has built about 2.4 miles of operating tunnel over seven years even as Las Vegas approved a much larger proposed system.

Why it matters: the financing, if completed on the reported terms, would test investor confidence in a Musk-led infrastructure venture with limited operating history relative to its proposed valuation. 24/7 Wall St. said key indicators will be who leads the funding round and whether additional Las Vegas Loop construction advances.