Tesla Motors Inc (NASDAQ:TSLA) CEO Elon Musk, has revealed his intention to publish the plans for his futuristic public transport scheme, the Hyperloop, by August 12. The engineering maven revealed the information using what appears to be his favorite form of communication, Twitter.
Elon Musk has been teasing the world with Hyperloop plans for at least a year. The numbers that Musk rattled off in connection with the transport system seemed far too good to be true. Musk said that an initial line, or loop, between Los Angeles and San Francisco would cost $6 billion. The journey would last just 30 minutes, and would cost less than a car journey.
There's been a mad dash to find the next Tesla in recent years, with billions of dollars being poured into electric vehicle companies. Components have received less attention than complete vehicles, but one ValueWalk subscriber found a component maker he believes would be a good investment. During a recent webinar, subscriber David Schneider shared his Read More
Will publish Hyperloop alpha design by Aug 12. Critical feedback for improvements would be much appreciated.
— Elon Musk (@elonmusk) July 15, 2013
Tesla Motors’ Elon Musk, Wild proclamations
Musk is known for making pretty wild proclamations, but he’s mostly turned out to have been pretty accurate. The Tesla Motors Inc (NASDAQ:TSLA) Model S was the first big break in electric cars, Space X is the first private firm to see success in space missions, and Solar Power at SolarCity Corp (NASDAQ:SCTY) is taking off.
The Hyperloop however, sounds a little too much like the Spruce Goose. It may work out exceptionally well for Musk, but it will probably be the most difficult project he’s ever attempted. There are huge problems with a project like this, even if the engineering is perfect. California is already spending $60 billion and counting, on a new high speed rail system. The Hyperloop, if it comes to fruition, would wipe out a great deal of that value.
The Hyperloop design will be released in August. Engineers around the world are surely salivating at the thought of it. Musk has managed to follow through on his ideas in the past, if this one is as good as he thinks it is, it will change the world. Nobody is really sure how it works just yet, however.
How to invest
Elon Musk has earned our faith to some degree at least. This project will probably not be connected to Tesla Motors Inc (NASDAQ:TSLA) or any of his other companies. Staying true to form, Musk is likely to set up the Hyperloop as its own entity. There seems to be little opportunity for investment right now.
Tesla Motors Inc (NASDAQ:TSLA) might be an investor in the Hyperloop firm, and it could be a decent proxy, but we don’t know. Once the plans are revealed, likely component manufacturers could form a decent proxy.