Should I Buy Boring Company Stock?

Elon Musk's latest venture has secured contracts to drill new tunnels under Chicago, so you might be asking, "Should I buy Boring Company stock?"

Unfortunately, the Boring Company IPO hasn't happened, so no publicly traded shares are available. But that doesn't mean you can't make money off of Elon Musk's genius...

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The Boring Company is one of Elon Musk's signature disruptive companies. It promises to "bore" tunnels for Musk's "Hyperloop" technology.

But the Boring Company promises to do much more than that, and that's what has the investing world so excited...

What the Boring Company Does

The Hyperloop - once fully developed - will allow people to travel hundreds of miles in mere minutes.

For example, a passenger that leaves Washington, D.C., via the Hyperloop should be able to reach New York City in just 30 minutes after traveling at speeds of over 750 miles per hour (mph).

This is under a quarter of the time it takes to travel that distance now.

hyperloop tunnelHyperloop's potential speed is much faster than a commuter train and more than double the speed of a maglev train. Maglevs are currently the world's fastest trains and can reach maximum speeds of 268 mph.

Last July, Musk announced the Boring Company had approval to start creating a tunnel between New York and Washington, D.C. Since then, the company has begun digging on a Los Angeles project and in areas around Baltimore.

On June 14, Musk announced the Boring Company won a major contract to construct an underground, high-speed transit system in Chicago. Even though the city hasn't released the bid, the value of this project has been estimated at just under $1 billion, according to the Chicago Tribune.

In exchange for paying to build the project, the Boring Company gets to keep the revenue that it generates from transit fees, branding, in-vehicle sales, and advertisements.

The revenue potential is enormous, but Musk's company must first deliver on its promise to produce this system at the agreed price.

Underground transportation systems are also notoriously costly. The Second Avenue New York City subway line cost roughly $2.5 billion per mile. The Paris Line 14 Extension ran about $450 million per mile. Musk is claiming that his team can deliver this project at less than $60 million per mile of tunneling, and this does not include the cost of vehicles or stations.

Despite all of the promise and potential, don't expect to see a Boring IPO...

Why We Won't See a Boring Company IPO Anytime Soon

Investors may be excited about the prospects for this company, but don't look for a Boring stock symbol anytime soon.

Even though there have been major projects announced and even started, this technology is still unproven. There still isn't a functional Hyperloop design, which means the potential breakthrough and high-speed travel is still just theoretical.

There have been several rounds of competitions to put together the best Hyperloop prototypes, with another happening this year. Unfortunately, no competitor has yet reached the targeted 750 mph, which is necessary for Hyperloop to work.

There are also some regulatory roadblocks with many of these major projects. Getting a verbal commitment to build a Hyperloop between New York and Washington, D.C., is important. But dealing with all of the necessary state and local permits to complete the Hyperloop is a separate challenge.

Plus, you may not see a Boring ticker for a while because Musk prefers that his companies are commercially viable before he takes them public. He has said this about SpaceX, and there is no reason to think that the Boring Company will be any different.

But instead of waiting around to buy Boring stock, we recommend that you profit from Elon Musk's disruption in another way...

Don't Wait Around for the Boring IPO to Make a Profit

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Elon Musk's Tesla Inc. (Nasdaq: TSLA) might be written off as a trendy car company, but it's much more than that. And it's where Elon Musk focuses his most creative agenda...

That's proving to be hugely profitable for investors.

Shareholders of Tesla have achieved gains of 14,000% since its IPO. But its growth is not stopping there.

You see, Tesla isn't just a car company...

Money Morning Chief Investment Strategist Keith Fitz-Gerald has been telling investors for years that Tesla is much more than a car company.

Last May, Keith told readers that Musk is going to use his inventive spirit to revolutionize much more than just the automobile industry. Instead of being a "car company," Tesla may very well end up being the world's next great energy company.

Just look at Musk's response to the crisis in Puerto Rico after Hurricane Maria. It wasn't to ship the island a bunch of Tesla Model 3s. Musk and Tesla offered to rebuild Puerto Rico's power grid using Tesla solar cells and home batteries. The island accepted, and the first project, at the Hospital del Niño, went live within just 30 days.

This is just one example of Tesla using its battery technology supplement to replace the power grid. The company also won a contract in South Africa to install a 100-megawatt facility, which has the capacity to power 30,000 homes.

Musk has a vision of creating a series of "microgrids," which are complete energy systems that include solar panels, batteries, a generator, and an electric car. According to Bloomberg, these battery-backed microgrids are expected to attract $22.3 billion in investment over the next decade. Navigant expects the power generated from these grids to reach 14.9 gigawatts by 2026, compared to just 238 megawatts today.

TSLA stock is trading at $347.78 per share. Among analysts, the one-year price targets for TSLA reach as high as $530 over the next 12 months, which would produce another 52% gains over today's stock price.

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