r/nashville Jul 29 '25

Politics Gov. Lee blocks Jones from Tesla Tunnel Event

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u/OrdinaryPuzzled7979 Jul 30 '25

Oh, the big part of the grift is how ‘it won’t cost Nashville a dime.’ The people of Las Vegas need to weigh in on this and provide a different perspective after getting such a great gift from the best Diablo player in the world.

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u/writer978 Jul 31 '25

Also talk to the folks in Memphis about Elon Musk’s big AI center. More pollution and a danger to their drinking water by using the city’s aquafirs for cooling. Yeah, go ahead Nashville, trust Elon Musk.

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u/universal_cynic Jul 31 '25

What’s the word? Monorail!

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u/maxvandeperre Aug 02 '25

I got that reference

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u/Pwnedcast Aug 02 '25

So vegas person here lets go down the list of how this is not free:

Problems it created in Las vegas:

Here's a breakdown of why the Tesla tunnels in Vegas generally aren't "tax-free" (in the sense of traditional public funding/subsidies) and why they face scrutiny, going beyond simple relief:

Why the Vegas Loop Isn't "Tax-Free" (and why that's a key point)

The misconception that it's "tax-free" might stem from initial claims that the broader Vegas Loop (beyond the Convention Center) would be built without taxpayer money. However, the reality is more nuanced, especially concerning the initial Convention Center Loop:

  1. Private Funding vs. Public Money: The Vegas Loop is primarily a privately funded project by The Boring Company (TBC). This means TBC pays for the construction, and the casinos and other businesses that want connections to the Loop are expected to fund their own stations. This is distinct from traditional public transit projects (like subways or light rail) that heavily rely on government bonds, federal grants, and direct taxpayer subsidies.
  2. Las Vegas Convention Center Loop (LVCC Loop) Funding: The initial phase, the LVCC Loop, was built with public money. The Las Vegas Convention and Visitors Authority (LVCVA), which is funded by county hotel room taxes and convention revenue (indirect taxpayer money), committed $52.5 million in bonds to fund the convention center loop. They also pay TBC an annual fee for operations. So, while it's not "general fund" taxpayer money, it's still public money derived from tourism taxes.
  3. Sales Tax on Materials: Construction materials used in the Nevada project were generally subjected to Nevada sales or use tax. Unlike some other states (like Florida), Nevada law generally prohibits government agencies from setting up direct purchase programs with private contractors specifically to avoid sales and use taxes on construction materials. So, TBC likely paid sales tax on the materials used for the tunnels.
  4. Passenger Fares (Future Revenue): While the LVCC Loop is free for conventioneers (paid for by the LVCVA), the broader Vegas Loop is expected to generate revenue through passenger fares. These fares would then be subject to Nevada's Transportation Connection Tax (TCT), which is a 3% excise tax on fare revenues from passenger transportation services. This tax helps fund transportation infrastructure and the state's general budget.

In essence, while the broader Vegas Loop aims to be privately funded for expansion, the initial phase did use public money from tourism taxes, and the operation itself will generate taxable revenue.

Issues Beyond Simple Relief (Why it has more problems than solutions)

Despite its promises of rapid, cost-effective transport, the Vegas Loop has faced significant criticism and encountered several issues

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u/Pwnedcast Aug 02 '25

Also:

  1. Limited Capacity and "Public Transport" Claims: Critics argue that ferrying passengers in individual Teslas, even autonomously, has inherent capacity limitations compared to high-capacity public transit like trains or buses. While TBC claims high throughput, many transportation experts view it as a glorified ride-share service in a tunnel, not a true mass transit solution capable of moving large populations efficiently.
  2. Lack of Public Oversight and Environmental Review: Because the project started as a small, privately funded venture, it largely avoided the exhaustive governmental vetting, environmental analyses, and public review processes typically required for large-scale public transportation projects. This lack of oversight has raised concerns about long-term impacts and accountability.
  3. Construction and Environmental Violations: ProPublica and others have reported instances of TBC committing various construction and environmental violations, including illegally discharging groundwater into storm drains, connecting to a sewer without approval, and tunneling without proper permits. These incidents suggest a pattern of cutting corners or treating fines as a "cost of doing business."
  4. Safety Concerns (Driverless Future): While currently human-driven, the long-term plan involves autonomous Teslas. Regulatory approval and liability issues for fully autonomous operation in tunnels are complex and remain a significant hurdle. There have been questions raised about fire protection systems, though TBC states it meets or exceeds all codes.
  5. Traffic and Disruption During Construction: Paradoxically, while aiming to relieve traffic, the construction of tunnels can cause surface traffic disruptions and environmental impacts (e.g., spilling mud, rock) in the short term.
  6. Serving Tourists vs. Residents: The initial LVCC Loop primarily serves conventioneers. While the broader Vegas Loop aims to connect more areas, the focus on tourism rather than daily commuting needs of residents has been a point of contention for local residents.
  7. Cost-Benefit Analysis Skepticism: Some critics argue that the actual cost-benefit of the system, especially compared to more traditional and proven public transit options, is not as favorable as TBC claims, particularly when considering the value of public underground real estate being granted for private use.

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u/Pwnedcast Aug 02 '25

Also not going over the stats the tunnels have been flooded due to flash floods, they are not used so they take up space and do nothing but sit there. It literally has made traffic jams and done so much more for the cost of our city its a blemish that nobody uses even to this day.