Breaking Finance News

What is the Hyperloop that Elon Musk is Talking About? (TSLA)

During the Telsa (NASDAQ: TSLA) conference call after the bell Wednesday, Dougherty & Company analyst Andrea James asked, “Are Tesla shareholders going to see any benefit from the Hyperloop?” What is she talking about and what did CEO Elon Musk have to say about it?

In an interview with Bloomberg Businessweek, Elon Musk laid out an ambitious idea that he had called the Hyperloop. Musk, who was the inspiration for Tony Stark in the “Iron Man” movie franchise,  envisions what he calls the fifth mode of transportation–the original four, train, plane, automobile, and boat.

According to Musk,

“What you want is something that never crashes, that’s at least twice as fast as a plane, that’s solar powered and that leaves right when you arrive, so there is no waiting for a specific departure time.”

Popular Wednesday: Somebody Already Owns the Tesla Trademark in China

According to the article, Musk has had a breakthrough. The breakthrough wasn’t disclosed but he did say that he believes that the hyperloop can move people from San Francisco to Los Angeles in 30 minutes at a cost of $6 billion to build compared to California’s current plan for high speed rail that will cost close to $60 billion.

But what was Musk’s answer to James’ question? The project appears to be on the back burner, at least for now.

I don’t know. I think, so out of the question, but I think I kind of shot myself if I ever mentioning Hyperloop, because obviously I have to focus on core Tesla business and SpaceX business and that’s more than enough, but I did commit to publishing a design and provide quite a detailed design I think on Monday and then invite critical feedback and see if the people can find ways to improve it and then you can just be out there as kind of like a open source design that maybe you can keep improving and I don’t have any plan to execute, because I must remain focused on SpaceX and Tesla. If nothing happens for a few years, with that I mean maybe it could make sense to make the halfway path with Tesla involvement, but I would say is you shouldn’t be speculative.

[stock-tools exchange="NASDAQ" symbol="TSLA" image_height="230" image_width="350"]

Disclosure: At the time of this writing, the author had no position in the company mentioned. 

 

Receive News & Ratings Via Email - Enter your email address below to receive a concise daily summary of the latest news and analysts' ratings with MarketBeat.com's FREE daily email newsletter.