Elon Musk’s underground transportation project in Las Vegas, known as the “Vegas Loop,” is facing renewed examination from Nevada lawmakers, who are raising concerns about potential workplace safety violations and environmental issues tied to the project.
State legislators spent several hours questioning safety regulators about alleged violations involving the Boring Company, Musk’s tunneling firm, which is also pursuing projects in Nashville and Dubai. Representatives from the company did not attend the hearing but submitted written responses defending their practices.
“I think they are a company that acts like they are kind of above the law and want to play by their own set of rules,” Democratic Assemblymember Howard Watts, whose district includes the tunnel system, told The Associated Press.
The Vegas Loop, which opened in 2021, provides free transportation around the Las Vegas Convention Center and charges fares ranging from $4 to $12 for trips to certain hotels, casinos, and the airport. Riders use Teslas that can be requested online or accessed at stations. The Boring Company has approval to construct 68 miles (109.44 kilometers) of tunnels and 104 stations across Las Vegas in coming years, addressing transportation gaps in a city with limited public transit options.
Las Vegas Mayor Shelley Berkley spoke positively about the project in January after the city approved a permit for a new tunnel.“The city is excited to bring an innovative transportation option to downtown Las Vegas and create another way for visitors to experience all that the city has to offer,” she said.
Fines levied against the company
The Boring Company has been accused of violating several safety and environmental regulations. Between 2020 and 2026, 17 complaints were filed with Nevada’s Occupational Safety and Health Administration. In addition, ProPublica reported last year that the company faced nearly 800 alleged environmental violations related to the Las Vegas project.
One of the 17 complaints led to an inspection that resulted in eight proposed citations. These included allegations that 15 to 20 workers suffered burns from accelerants and that there were no shower facilities available for employees exposed to those substances. Other complaints remain unresolved. Overall, the company has paid close to $600,000 in fines, largely to the local water reclamation district for releasing untreated wastewater. It is currently contesting approximately $355,000 in penalties issued by Nevada OSHA and the Nevada Division of Environmental Protection.
The company did not respond to requests for comment from The Associated Press. However, in a letter sent to lawmakers, it highlighted its safety measures, including daily site inspections and employee safety training.
Watts also referenced a September 2025 incident in which a worker was seriously injured inside a tunnel after becoming trapped between two 4,000-foot pipes. According to Watts, firefighters used a crane to remove the worker through the tunnel entrance.
 |
In a statement issued to local media outlets in September, the company said it was looking into the incident and emphasized that employee safety is its top concern. It also said the injured worker was stable and recovering well. Watts said lawmakers may introduce legislation during the next legislative session to accelerate how violations are assessed and reduce the time allowed to contest them.
The scrutiny in Nevada comes as the Boring Company has begun construction on the Music City Loop in Nashville, despite opposition from some local officials who have raised concerns about safety, transparency, and limited community involvement. The initial phase includes 13 miles of tunnels connecting downtown Nashville with the city’s airport.
Fines withdrawn
Last year, the state dropped more than $425,000 in fines related to a May 2025 incident in which two firefighters suffered chemical burns during a training exercise at the site.
Salli Ortiz, legal counsel for OSHA, told lawmakers that errors and inconsistencies in the reports meant the state likely could not meet the required burden of proof to uphold the fines. Investigators later found that the firefighters chose not to wear an additional layer of protective gear, and inspection records showed that the Boring Company had conducted six safety meetings with the fire department ahead of the drill.
Democratic lawmakers criticized Republican Gov. Joe Lombardo and his administration, accusing them of being too lenient toward the company.
“The idea that there is external pressure that is swaying my decision making, or our division’s decision making, or that there’s any pressure that comes from me as a result of pressure from on high is incorrect,” Kris Sanchez, director of Nevada’s Department of Business and Industry, told lawmakers on Tuesday.
Easy transport for convention-goers
Despite the controversy, the tunnel system has proven popular with many visitors, particularly during large conventions such as the annual Consumer Electronics Show in January. On a recent weekday, Teslas were frequently seen picking up and dropping off passengers at the Las Vegas Convention Center station.
Devin Newcomb, a resident of San Diego and frequent visitor to Las Vegas, said the Vegas Loop makes navigating the city easier and will be even more useful once expanded to locations like the Venetian.“It’s awesome. I love it,” he said.
Samantha Mingola, who traveled from Florida to attend an expo at the convention center, said the Vegas Loop has been simpler to use than traditional rideshare services and especially convenient because her hotel has a loop station.
However, she also expressed concerns about tunnel safety and about a company led by Musk.“It’s a good idea but it scares me,” Mingola said as she headed toward the station.