Elon Musk’s Boring Co. Accused of 800 New Environmental Violations Digging Las Vegas ‘Tesla Tunnels’

Posted on: October 11, 2025, 02:57h. 

Last updated on: October 11, 2025, 02:57h.

Nevada regulators have accused the Boring Co. of committing nearly 800 environmental infractions over the past two years while expanding its Vegas Loop, according to a new report by ProPublica and Cast Las Vegas podcast co-host Dayvid Figler.

The Vegas Loop is nicknamed the “Tesla Tunnels” by locals because, instead of shuttling hundreds of people at a time in tunnels beneath Las Vegas Strip traffic, it uses Musk’s electric cars to drive passengers, up to three at a time, through narrow tunnels dug beneath the city. And the Teslas still require human drivers, despite initial promises to the contrary. (The Boring Co.)

A cease-and-desist letter issued by the Nevada Division of Environmental Protection (NDEP) cited violations including:

  • Drilling without proper permits
  • Discharging untreated water onto public streets and into storm drains
  • Spilling construction debris and muck from transport trucks

These actions allegedly breach a 2022 settlement agreement signed by the Boring Co. that was meant to ensure compliance with Nevada’s water pollution laws following earlier violations dating back five years.

Despite the agreement, inspectors documented nearly 100 new violations, including the company’s failure to appoint an independent environmental manager and 689 missed site inspections.

Chump Change

Although the agency could have imposed fines exceeding $3 million under the 2022 agreement, it opted to reduce the penalty to $242,800, citing the sheer volume of violations.

The letter read: “Given the extraordinary number of violations, NDEP has decided to exercise its discretion to reduce the penalty to two $5,000 violations per permit, which it believes offers a reasonable penalty that will still serve to deter future non-compliance conduct.”

The Vegas Loop currently operates a 0.8-mile route connecting the Las Vegas Convention Center with the Westgate, Resorts World and Encore. The long-term vision includes 68 miles of tunnels and 104 stations throughout the city.

Neither Elon Musk nor the company has publicly responded to the allegations. However, a state spokesperson told ProPublica that Boring Co. plans to contest the violation notice.

A 2024 photo from OSHA shows a Vegas Loop tunnel through which Boring Company employees were forced to walk, flooded with a sludge containing dangerous chemicals. (Image: OSHA)

In the past, Musk has stated his preference for paying penalties over waiting for environmental approvals as business policy.

​​“Environmental regulations are, in my view, largely terrible,” he told the libertarian Cato Institute last year. “You have to get permission in advance, as opposed to, say, paying a penalty if you do something wrong, which I think would be much more effective.”

Because it is privately funded and receives no federal money, the Boring Co. is exempt from many environmental analysis requirements. But it is required to obtain state permits to ensure that waste from construction its Vegas Loop does not contaminate the environment or local water sources.

In addition to environmental concerns, the company has faced worker safety issues. Nevada’s Occupational Safety and Health Administration fined Boring Co. over $112,000 for incidents involving chemical burns from tunnel concrete mixtures. Furthermore, in September 2025, construction on a tunnel leading to Harry Reid International Airport was temporarily halted following a crushing injury on site.