Musk’s underground tunnels in Las Vegas face scrutiny over safety, environmental concerns

A Tesla is driven through the Vegas Loop under the city on Wednesday, Feb. 4, 2026, in Las Vegas. (AP Photo/Ty ONeil)

LAS VEGAS — Elon Musk’s “Vegas Loop,” a network of underground tunnels to ferry passengers in Teslas, was under fresh scrutiny this week from Nevada lawmakers who raised concern about alleged workplace safety and environmental violations.

Lawmakers spent hours grilling state safety officials over alleged violations by the Boring Company, the Musk-owned venture with tunneling projects also planned in Nashville and Dubai. Company officials declined to attend but provided written answers defending the project.

“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 project, told The Associated Press.

First opened in 2021, the Vegas Loop offers free rides around the Las Vegas Convention Centre and charges between US$4 and $12 for rides to some hotels, casinos and the airport. The Teslas can be hailed by website or accessed at stations. The Boring Company is approved to build 68 miles (109.44 kilometres) of tunnels and 104 stations over the next few years in Vegas, a city that lacks fast and robust public transit.

Vegas Mayor Shelley Berkley praised the project in January after the city issued 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 breaking multiple safety and environmental rules. Between 2020 and 2026, 17 complaints were filed with the Nevada State Occupational Safety and Health Administration. Last year ProPublica reported the company was accused of nearly 800 environmental violations for its Las Vegas project.

Of those 17 complaints, one resulted in an inspection with eight proposed citations, including claims that 15 to 20 employees were injured after getting burned with accelerants and that there were no showers available for employees who got sprayed with the accelerants. Several other complaints are still open. The Boring Company has paid nearly $600,000 in fines, most of which went to the local water reclamation district for discharging untreated wastewater. The company is fighting around $355,000 in fines with Nevada’s OSHA and the Nevada Division of Environmental Protection.

The company did not return emails seeking comment from The Associated Press. But in a letter to lawmakers, the company emphasized its safety procedures, including daily inspections and workplace safety training.

Watts on Tuesday also highlighted a September 2025 incident in which a worker suffered a crushing injury inside a tunnel after being pinned between two 4,000-foot pipes. Firefighters used a crane to extract him from the tunnel opening, Watts said.

In a September statement to local news outlets, the company said it was investigating the incident and that the safety and well-being of its employees are top priority. It added that the employee was in stable condition and doing well.

Watts said lawmakers may bring forward legislation when they return to session next year to speed up the process for assessing violations and shorten the timeline for contesting them.

The scrutiny in Nevada comes as Musk’s company has started construction in Nashville on the Music City Loop despite opposition from some Nashville officials concerned about safety, transparency and a lack of local input. The initial 13-mile (20 km) stretch of tunnels will connect the city’s airport and downtown.

Fines withdrawn

Last year, the state withdrew over $425,000 of fines stemming from a May 2025 incident in which two firefighters received chemical burns while on the site for a training exercise.

The reports from OSHA had mistakes and anomalies, meaning they likely wouldn’t be able to meet the high burden of proof required to justify the fines, Salli Ortiz, the agency’s legal counsel, told lawmakers. The state learned the two firefighters had opted to not wear a second layer of protective clothing, and The Boring Company conducted six safety meetings with the fire department in advance of the drill, according to inspection reports.

Democratic lawmakers criticized Republican Gov. Joe Lombardo and his administration for going soft on 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 the state Department of Business and Industry, told lawmakers Tuesday.

Easy transport for conventiongoers

The tunnel system is already a hit with many visitors, especially during conventions like the annual Consumer Electronics Show in January. On a recent weekday, a stop at the Las Vegas Convention Centre had a steady stream of Teslas picking up and dropping off people.

San Diego resident Devin Newcomb, a frequent visitor, said the Vegas Loop helps him get around the city, and it will only help more when it is extended to places like the Venetian.

“It’s awesome. I love it,” he said.

Florida resident Samantha Mingola has been using Vegas Loop while attending an expo at the convention centre. She said it is easier to set up than other rideshares, and it has been convenient because she is staying at a hotel with a loop station.

Still, she said she worries the tunnels could cave in and is unsure about a company run by Musk.

“It’s a good idea but it scares me,” Mingola said on her way to the station.

Jessica Hill, The Associated Press