The Boring Company is anything but dull. The company has an ambitious goal of solving the problem of soul-destroying traffic and beautifying cities. It aims to do that by building a large network of underground tunnels to speed up transportation and free up more green space.
The Boring Company is the vision of Elon Musk. He founded the company in 2017. It was initially part of another Musk investment, SpaceX, but Musk spun it out into a separate entity. It has since developed its own tunnel boring machines, Prufrock, and started building underground tunnels in Las Vegas and other cities.
Image source: Getty Images.
The company has a massive opportunity. It could eventually build tens of thousands of miles of tunnels under U.S. cities. That could drive significant revenue growth for The Boring Company, potentially making it a highly valued company in the future.
That growth potential has investors eagerly awaiting The Boring Company's initial public offering (IPO). Here's a guide to everything you need to know about how to invest in The Boring Company ahead of its eventual IPO.
IPO
IPO (Initial Public Offering) is the first sale of stock by a private company to the public, making it a publicly traded entity.
Is it publicly traded?
Is The Boring Company publicly traded?
The Boring Company is not a publicly traded company. It's a privately held company owned by Musk and other investors.
When it will IPO
When will The Boring Company IPO?
The Boring Company didn't have an IPO on the calendar as of late 2023. It hadn't publicly disclosed any plans to complete an IPO in the near term.
How to invest
How to buy The Boring Company stock
The Boring Company is a privately held company controlled by Musk. Because it's not a publicly traded company, you can't purchase its shares in a regular brokerage account like you can for other stocks.
However, accredited investors (i.e., high-net-worth individuals or those with high incomes) can sometimes buy pre-IPO shares of companies like The Boring Company on secondary platforms such as Equity Bee or Forge Global. Accredited investors who really want to get in on the ground floor of this pre-IPO stock should check out those platforms to see if they have shares of The Boring Company available for purchase.
Unfortunately, non-accredited investors must wait for Musk to take The Boring Company public before they can buy shares. In the meantime, people interested in investing in Musk-backed companies or focused on enhancing infrastructure can consider an alternative. Here are three options to consider:
1. Tesla
Tesla (TSLA 0.21%) is a leading global manufacturer of electric vehicles (EVs), battery storage products, and solar energy products. Musk co-founded the company in 2003 and serves as its CEO. He helped start the company with the bold mission of accelerating the global transition to more sustainable energy, which it's achieving. Although an investment in Tesla won't give investors exposure to The Boring Company, they can invest in another entity controlled by Musk.
2. Brookfield Infrastructure
Brookfield Infrastructure (BIPC 1.07%)(BIP 0.27%) is a leading global infrastructure operator and developer. The company has four operating segments: utilities, transport, midstream, and data. Brookfield's transport segment focuses on the movement of freight, commodities, and passengers. It has an extensive global toll road network to complement its rail and port terminals. These businesses generate steady and growing income, the majority of which Brookfield pays to investors via dividends.
3. Transurban Group
Transurban Group (OTC:TRAUF) is one of the world's leading toll road operators. The Australian company builds and operates toll roads in its home country, the Washington, D.C., area, and Montreal. The company operates 22 toll roads that support 2.4 million vehicles per day.
People who want to buy one of these alternatives to the Boring Company can purchase shares in any brokerage account. Here's a step-by-step guide to investing in these stocks.
- Open a brokerage account. You'll have to open and fund a brokerage account before buying shares of any company. If you still need to open one, here are some of the best-rated brokers and trading platforms. Take your time to research the brokers to find the best one for you.
- Figure out your budget. Before making your first trade, you'll need to determine a budget for how much money you want to invest. You'll then want to decide how to allocate that money. The Motley Fool's investing philosophy recommends building a diversified portfolio of 25 or more stocks you plan to hold for at least five years. You don't have to get there on the first day. For example, if you have $1,000 available to start investing, you might want to begin by allocating that money equally across at least 10 stocks and then grow from there.
- Do your research. It's essential to thoroughly research a company before buying its shares. You should learn about how it makes money, its competitors, its balance sheet, and other factors to make sure you have a solid grasp on whether the company can grow value for its shareholders over the long term.
- Place an order: Once you've opened and funded a brokerage account, set your investing budget, and researched the stock, it's time to buy shares. The process is relatively straightforward. Go to your brokerage account's order page and fill out all the relevant information, including:
- The number of shares you want to buy or the amount you want to invest to purchase fractional shares.
- The stock ticker (TSLA for Tesla, BIPC or BIP for Brookfield Infrastructure, or TRAUF for Transurban Group).
- Whether you want to place a limit order or a market order. The Motley Fool recommends using a market order since it guarantees you buy shares immediately at the market price.
Once you complete the order page, click to submit your trade and become a shareholder of one of these alternatives to The Boring Company.
Investors would follow a similar process to buy an IPO stock like The Boring Company when it goes public. Once shares become available, select The Boring Company's chosen stock ticker to buy shares through your brokerage account.
Profitability
Is The Boring Company profitable?
As a privately held company, The Boring Company doesn't need to publicly disclose its financials, so there isn't currently any publicly available information on its profitability.
As an early-stage company, The Boring Company is likely a long way from profitability. The company opened its first commercial tunnel project in Las Vegas in 2021. It's working to expand that project and build other tunnels. That heavy capital investment likely has the company deep in the red.
Should you invest?
Should I invest in The Boring Company?
Musk's The Boring Company isn't a publicly traded company yet, so only accredited investors can buy shares at this time. That gives non-accredited investors the time to thoroughly research the company while they await its IPO, and they can finally buy shares. The research process might excite you even more about the company's future prospects and increase your conviction that it's an appealing stock to buy. However, you could also discover things about the company that change your mind about buying its shares.
Here are some reasons why you might want to become an investor in The Boring Company:
- You think the company's tunnels will help solve traffic problems.
- You believe it can generate lots of revenue in the future as it commercializes its tunnels.
- You prefer to invest in founder-led companies.
- You're a big fan of Musk and want to invest in companies he's backing.
- You believe that with Musk at the helm, The Boring Company can create lots of shareholder value like Musk did for Tesla investors.
- You think The Boring Company will benefit from increased infrastructure spending in the U.S.
On the other hand, here are some reasons why you might decide that The Boring Company isn't the right investment for you:
- You don't think the company's tunnels will help solve traffic issues.
- You're not sure if The Boring Company will generate meaningful revenue and profits in the future as it commercializes its tunnels.
- You're not a fan of Musk and don't want to invest in companies he backs.
- You're not sure that The Boring Company can grow shareholder value over the long term.
- You prefer to invest in companies further along in their maturity than The Boring Company, which is still very early in commercializing its tunnels.
Related investing topics
ETFs
ETFs with exposure to The Boring Company
Musk's The Boring Company is still a privately held company, so investors can't gain passive exposure to its stock by investing in an exchange-traded fund (ETF).
Exchange-Traded Fund (ETF)
An exchange-traded fund, or ETF, allows investors to buy many stocks or bonds at once.
However, people interested in investing in the infrastructure sector can consider an ETF focused on that theme. Here are three top infrastructure ETFs:
- Global X U.S. Infrastructure Development ETF (PAVE 1.41%): This ETF aims to invest in companies that will benefit from increased infrastructure spending in the U.S. That includes companies that produce raw materials, manufacture heavy equipment, and are involved in engineering and construction. The fund held 98 stocks in late 2023. This ETF had a total expense ratio of 0.47%.
- iShares Global Infrastructure ETF (IGF 0.85%): This ETF seeks to invest in companies that provide transportation, communication, water, and electricity services worldwide. This fund held 75 stocks as of late 2023, including Transurban, its second-largest holding at 4.8% of its total assets. The ETF had a 0.41% expense ratio.
- FlexShares STOXX Global Broad Infrastructure Index Fund (NFRA 0.4%): This fund broadly invests in global infrastructure, including communication, energy, transportation, and utilities. The fund held shares of 213 companies as of late 2023. It had a net expense ratio of 0.47%.
The bottom line on The Boring Company
Musk's The Boring Company has a bold vision to solve the soul-crushing problem of sitting in traffic. He aims to build a network of tunnels under America's cities to quickly transport people to their destinations while freeing up space above ground. That ambitious goal could drive significant revenue for The Boring Company in the future. That makes it an exciting company to keep an eye on as it eventually heads towards an IPO.
Investing in The Boring Company FAQs
What is The Boring Company stock symbol?
The Boring Company doesn't trade publicly on stock exchanges like the New York Stock Exchange or Nasdaq, so it doesn't have a stock ticker symbol yet.
How much is The Boring Company worth?
The Boring Company last raised money from investors in 2022. Its last funding round brought in $675 million, which valued the company at $5.7 billion. However, the market values of public and private companies have fluctuated significantly since that time. As a result, The Boring Company could be worth less than its 2022 post-money valuation if it raised additional capital in the current market conditions.
Matthew DiLallo has positions in Brookfield Infrastructure, Brookfield Infrastructure Partners, and Tesla. The Motley Fool has positions in and recommends Tesla. The Motley Fool recommends Brookfield Infrastructure Partners. The Motley Fool has a disclosure policy.
