Try to run an online world and a company town

Would it be easier to run Twitter or build and oversee a company town? Elon Musk is exploring constructing a town in Texas for employees of his multiple firms:

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In meetings with landowners and real-estate agents, Mr. Musk and employees of his companies have described his vision as a sort of Texas utopia along the Colorado River, where his employees could live and work.

Executives at the Boring Co., Mr. Musk’s tunnel operation, have discussed and researched incorporating the town in Bastrop County, about 35 miles from Austin, which would allow Mr. Musk to set some regulations in his own municipality and expedite his plans, according to people familiar with Mr. Musk’s projects.

They say Mr. Musk and his top executives want his Austin-area employees, including workers at Boring, electric-car maker Tesla Inc. and space and exploration company SpaceX, to be able to live in new homes with below-market rents…

As of last year, Boring employees could apply for a home with rents starting at about $800 a month for a two- or three-bedroom, according to an advertisement for employees viewed by the Journal and people familiar with the plans. If an employee leaves or is fired, he or she would have to vacate the house within 30 days, those people said.

I am intrigued by the contrast between online and offline activity. I have argued before that the two realms are more linked than people think. Here, both the business activity spans these two realms as might the world of employees and visitors.

What might the fate be of this proposed community? On one hand, if the primary goal is to provide cheaper housing for employees, perhaps such a community could be really helpful. Since housing is a significant portion of household costs, providing cheaper good housing could help attract and retain employees. Another bonus is that employees are close to work and might be willing to work more hours.

On the other hand, when has a company town worked out well in the long-term? What regulations does Musk want to implement and what are the penalties for not adhering to them or disagreeing with them? Even with reduced housing prices, how will employees feel about always being tied to work?

My suspicion is that this will not work out as intended. Developing a community is no easy task and the interaction between work life and community life is hard to manage.

Imagining self-driving car underground tunnels under major American cities

Elon Musk’s plan for self-driving cars to operate in tunnels under Las Vegas appears close to becoming reality:

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On Tuesday, Musk announced on Twitter that, after a full year in the making, The Boring Company’s first operational “loop tunnel” in Las Vegas is “almost done.”…

The Boring Company built a test tunnel in 2018 near its headquarters in Hawthorne, California. A year later, it landed a commercial contract in Las Vegas to build a loop tunnel system for public use. According to The Boring Company’s proposal, the final system will be able to shuttle passengers in self-driving Tesla cars between any two destinations in Sin City within minutes.

Construction of the initial twin tunnels near the Las Vegas Convention Center (LVCC) was complete in May. The system is expected to be ready for public use for the Consumer Electronics Show (CES) in January 2021. But the event has been moved online due to the coronavirus pandemic.

Last month, The Boring Company won a county approval to expand its LVCC transportation Loop to include an underground station at the new Resorts World hotel located at the north end of the Vegas Strip. Ultimately, the company aims to connect all major tourist destinations along the Strip, as well as two terminals of the nearby McCarran International Airport and downtown Vegas.

This location makes sense when tourism is in full swing in Las Vegas. While the airport is relatively close to the strip, it is not necessarily close time-wise and a quick, automated car ride could please a lot of visitors. It is also fun to imagine this in other cities. The tunnels bring to mind memories of playing the Lower Wacker track on Cruis’n USA. Chicago has some of this infrastructure already in place while other cities might be able to convert or expand existing tunnels.

How this could positively affect streetscapes is fascinating. Imagine major American cities with less traffic in their denser areas, more room for pedestrians, more space for properties to extend past the building. Cars would still be in use – just moved to a different plane – but the emphasis on vehicles would be reduced. More streets could be closed, the scale of social life could change (though the towering buildings in some districts would still loom), and the streets would be safer. (I imagine taxis and others might not be pleased to have the business moved underground.)

This is likely a long project to pursue in any city; making big changes underground in many locations is very difficult. It does keep cars around (just more out of sight) and both the money spent to put the system in place and the ongoing commitment to the system could continue to inhibit other options such as promoting mass transit.

What it would take to approve Musk’s Northeast Corridor hyperloop

Elon Musk may have verbal approval for his underground hyperloop but there is much more work to be done to get the project underway:

“It means effectively nothing,” says Adie Tomer, who studies metropolitan infrastructure at the Brookings Institution. “The federal government owns some land, but they don’t own the Northeast corridor land, and they don’t own the right-of-way.” Sure, having presidential backing isn’t bad—but it is far, far from the ballgame…

First, you have to get the OK from all the states and cities and municipalities involved. This is essential because Musk promises this Northeast hyperloop will pass through city centers, so he’s counting on tunneling under places where lots of people live and work and play. Judging by the the official responses from local agencies and politicians along the proposed route, this process is not quite underway. “This is news to City Hall,” the press secretary for New York Mayor Bill de Blasio tweeted. Looks like the Boring Company has a lot of boring meetings with public officials ahead of it…

And then there’s the little problem of moolah. Just updating the current Northeast corridor railroad—you know, the one run by Amtrak—to high-speed rail standards would cost an estimated $123 billion. Tunneling will be even more expensive. Musk has promised his boring technology will speed up the construction and bring down costs. But boring will never be cheap, especially in populated areas. Carving less than two miles of tunnel under New York for the Second Avenue Subway took $4.5 billion. Even if this hyperloop were entirely privately financed, it would take lots of zeroes…

By law, projects need to be evaluated for the potential environmental consequences of their construction and operations, to create what’s called an Environmental Impact Statement. Federal agencies generally take a while to prepare these documents: One 2008 study found the average writeup took three and a half years, and some have taken as many as 18. They also cost a lot to prepare—millions and millions in government funds.

That is a lot to take on. I’ve seen suggestions in recent years that the United States is no longer able to tackle needed large infrastructure projects. In the past, large projects could be accomplished such as the intercontinental railroad or Hoover Dam. Today, American projects lean more toward interminable delays and huge cost overruns. In contrast, some other countries do not get bogged down in the same ways. Sure, some of that might require more authoritarian regimes – such as the new Silk Road railroad in China or the growth in Abu Dhabi in the United Arab Emirates – but things get done!

Moving forward, is there a way for a country like the United States to undertake large innovative projects without all the bureaucracy that slows it down? Can we still take risks? Musk’s hyperloop might be a perfect test case: the technology barely exists so it might be an incredible risk. But, the payoff could be tremendous (and not just necessarily for the intended purpose of a new transportation technology but the other helpful pieces that come along the way – including a way forward across multiple governments and requirements).

Will he or won’t he tunnel under Los Angeles?

Few tunnels get as much public attention as just the idea Elon Musk has to tunnel under Los Angeles to avoid traffic:

After being stuck in heavy traffic in December, the billionaire came up with a plan to create a giant tunnel under Los Angeles to ease congestion.

‘Traffic is driving me nuts. Am going to build a tunnel boring machine and just start digging…’, he tweeted…

Excavators working for the entrepreneur have already dug a test trench at SpaceX’s headquarters in Hawthorne, Los Angeles, Wired reported last week…

‘If you think of tunnels going 10, 20, 30 layers deep (or more), it is obvious that going 3D down will encompass the needs of any city’s transport of arbitrary size,’ he told Wired last week in a Twitter direct message.

I have a hard time envisioning how this could become useful for the general public. Musk would have to figure out something pretty spectacular to get the cost and time down. Or, one tunnel could open but it would be prohibitively expensive to use.

And isn’t there also an issue of freeing up land for entrances and exits from these deep tunnels? (Los Angeles might be a bit different if the tunnels are primarily for going through mountain passes.)