Elon Musk’s Boring Company Faces Allegations of 800 Additional Environmental Violations While Excavating ‘Tesla Tunnels’ in Las Vegas |

Posted on: October 11, 2025, 02:57h.

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

Regulators in Nevada have charged the Boring Company with nearly 800 environmental violations over the last two years during the expansion of its Vegas Loop project, according to a recent investigation by ProPublica and Dayvid Figler, co-host of the Cast Las Vegas podcast.

Boring Company Tunnel — Locals refer to the Vegas Loop as the “Tesla Tunnels,” where electric cars transport small groups through narrow tunnels beneath the Las Vegas Strip, rather than shuttling large crowds. Despite earlier assurances, human drivers are still required. (The Boring Co.)

A cease-and-desist letter from the Nevada Division of Environmental Protection (NDEP) highlighted violations such as:

Drilling without obtaining necessary permits
Releasing untreated water into public roadways and storm drains
Dumping construction debris and materials from transport vehicles

These actions reportedly violate a 2022 settlement agreement designed to ensure the Boring Company’s adherence to Nevada’s water pollution regulations after prior infractions over the past five years.

Despite this agreement, inspectors found around 100 new violations, which included the firm’s neglect to appoint an independent environmental manager and the failure to conduct 689 required site inspections.

Insignificant Fines

While the agency could have imposed penalties exceeding $3 million as per the 2022 agreement, it chose to lower the fine to $242,800 due to the number of infractions.

The letter stated: “Considering the significant number of violations, NDEP has opted to reduce the penalty to two $5,000 violations for each permit, believing this provides an adequate deterrent for future non-compliance.”

The current Vegas Loop spans an 0.8-mile route linking the Las Vegas Convention Center to Westgate, Resorts World, and Encore. The future vision includes 68 miles of tunnels and 104 stations across the metropolitan area.

Neither Elon Musk nor his company has yet addressed the allegations publicly. However, a spokesperson from the state informed ProPublica that the Boring Company intends to challenge the violation notice.

OSHA Inspection Photo — In 2024, an OSHA image shows a section of the Vegas Loop tunnel where employees had to traverse a flooded area containing hazardous chemical sludge. (Image: OSHA)

Elon Musk has previously expressed a preference for accepting fines over waiting for environmental approvals as a business strategy.

“In my opinion, environmental regulations are often inefficacious,” he remarked at a 2024 discussion hosted by the libertarian Cato Institute. “You are required to secure permission beforehand, rather than being able to pay a penalty for wrongdoing, which I believe would be a more effective approach.”

Since it is privately funded and does not receive federal financing, the Boring Company is exempt from numerous environmental analysis mandates. However, it still must acquire state permits to ensure that waste from the Vegas Loop construction does not pollute the environment or compromise local water supplies.

Beyond environmental issues, the company has also encountered challenges regarding worker safety. Nevada’s Occupational Safety and Health Administration penalized the Boring Company over $112,000 for incidents resulting in chemical burns from tunnel concrete mixtures. Additionally, in September 2025, work on a tunnel leading to Harry Reid International Airport was temporarily halted following a workplace injury.

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