Tesla Expects to Make Some Money Off Elon Musk's Tunnel Company
Tesla added an intriguing customer last year: Elon Musk’s Boring Co.
(Bloomberg) -- Tesla Inc. added an intriguing customer last year: Elon Musk’s Boring Co.
The electric-car maker reached an agreement to sell vehicle motor and battery pack components to the tunnel-digging startup, according to a proxy statement. Tesla said it expects to send Boring Co. an invoice totaling about $400,000 for this year and 2017.
It’s not the only case in which money is changing hands between Tesla and other companies led by its chief executive officer. Musk’s Space Exploration Technologies Corp. reached an agreement in June to pay Tesla $1.9 million for a microgrid energy system and installation services. In March, the rocket company bought another $150,000 in additional equipment, and the related work will be completed in the second quarter, according to Tesla.
SpaceX also has charged Tesla for use of the aircraft that the rocket company and Musk own and operate. Last year, Tesla racked up a bill of almost $750,000 under these arrangements.
To contact the reporter on this story: Dana Hull in San Francisco at dhull12@bloomberg.net.
To contact the editors responsible for this story: Craig Trudell at ctrudell1@bloomberg.net, Mark Milian
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