- Tech Crunch/Flickr
Hyperloop One is already seeking more funding for its high-speed transportation system, a project that’s turning out to be more expensive than initially thought.
That’s according to new investment documents obtained by Forbes’ Alex Konrad and Alan Ohnsman, which reveal the company is planning to raise $250 million in early 2017.
Less than two weeks ago, the Los Angeles-based company secured $50 million in a funding round led by DP World, the third-largest port and terminal operator in the world.
While the project is still on track to launch by 2020, Forbes reports, it’s much more expensive than Elon Musk – who initially came up with the idea for the Hyperloop and open-sourced it – had predicted. While Musk proposed a total cost of $6 billion for the Hyperloop in California, Hyperloop One’s system would cost between $9 billion and $13 billion just in the Bay Area, according to Forbes.
Hyperloop One has raised a total of $160 million for the project and performed a test of its propulsion system in May, which was widely viewed as a success. The company’s sled traveled down a test track at 116 mph, although the goal is to have the pods travel at 700 mph.
In recent months, however, Hyperloop One has had issues within the company, including a series of accusations, legal actions, and resignations involving cofounders Brogan BamBrogan and Shervin Pishevar. BamBrogan and several other employees have left the company and filed a lawsuit against Pishevar, his brother Afshin, CEO Robert Lloyd, and vice-chairman Joseph Lonsdale. In a countersuit, Hyperloop One alleges BamBrogan was part of a “Gang of Four” attempting to manufacture and incite conflict “in a transparent attempt to seize control of the company.”