In the subterranean network beneath Las Vegas, Elon Musk’s The Boring Company has begun testing Tesla’s Full Self-Driving (FSD) technology, marking a tentative step toward automating its tunnel shuttle system. The tests, which involve Tesla vehicles navigating the controlled environment of the Vegas Loop tunnels, are being conducted with safety drivers at the wheel, ensuring human oversight amid the push for autonomy. This development comes as The Boring Company seeks to expand its operations, potentially reducing costs by eliminating the need for human operators in its electric vehicle fleet.

The Vegas Loop, a 3.5-mile tunnel system servicing the Las Vegas Convention Center, has been operational since 2021, ferrying passengers in Tesla Model 3 and Model Y vehicles. However, the integration of FSD has been slower than anticipated. Initial promises of full autonomy date back years, with Musk envisioning tunnels filled with self-driving cars as a solution to urban congestion. Yet, recent tests highlight ongoing challenges, including issues with low-light conditions and precise station docking, which have delayed widespread implementation.

Challenges in Underground Autonomy

Industry observers note that the controlled, one-way tunnels should theoretically be an ideal proving ground for FSD, free from the variables of surface traffic like pedestrians or weather. But according to a report from TechCrunch, the technology still requires refinement. Executives at the Las Vegas Convention and Visitors Authority, which oversees the loop, have indicated that while testing is underway, full driverless operations remain “a ways off.” This cautious approach underscores broader regulatory and safety hurdles facing autonomous vehicle deployment.

Comparisons to Tesla’s broader FSD rollout reveal similar patterns of optimism tempered by reality. Tesla has been beta-testing FSD on public roads for years, but incidents and regulatory scrutiny have slowed progress. In the tunnels, the stakes are somewhat lower, with no cross-traffic or complex intersections, yet even here, the system struggles with nuances like varying tunnel lighting, as detailed in analyses from IndexBox. The Boring Company’s tests reportedly began before Tesla’s robotaxi unveilings, suggesting a strategic alignment between Musk’s ventures.

Economic and Operational Implications

For The Boring Company, automating the Vegas Loop could significantly cut operational expenses, currently burdened by driver salaries. The system transports thousands of convention attendees daily, and scaling to full autonomy might enable expansion to connect more Strip hotels and the airport, as Musk has long promised on social media platforms like X. However, a piece in Fortune quotes convention center executives emphasizing that human drivers will remain for the foreseeable future, prioritizing passenger safety over hasty automation.

This testing phase also intersects with regulatory dynamics in Nevada. The state’s transportation authority is reviewing proposals to extend The Boring Company’s operations above ground, potentially disrupting traditional taxi services. Insights from Nevada Current suggest approvals might proceed without public hearings, raising concerns about transparency in a city reliant on tourism and transport innovation.

Broader Vision and Future Hurdles

Musk’s integrated ecosystem—Tesla’s software powering Boring’s hardware—aims to redefine urban mobility, with similar projects eyed for cities like Nashville. Yet, as Electrek reports, even in these simplified tunnels, FSD isn’t fully operational, echoing delays seen in Tesla’s highway autonomy efforts. Industry insiders speculate that resolving sensor conflicts, such as those between cameras and radar, will be key, with Musk himself noting on X that pure vision-based systems offer superior safety.

As testing continues, the Vegas tunnels serve as a microcosm of autonomous tech’s promise and pitfalls. Success here could accelerate adoption elsewhere, but persistent technical and regulatory barriers suggest that fully self-driving shuttles may not materialize until late 2025 or beyond. For now, The Boring Company’s cautious experiments highlight the gap between visionary rhetoric and engineering reality in Musk’s empire.