Economy

Elon Musk’s secret weapon in his quest to reinvent the US government

Davis stuck with Musk, and by 2016 was leading the Boring Company, a start-up that aims to “solve traffic” with underground transit. Boring has built a handful of short tunnels in Hawthorne, California; greater Austin, Texas; and Las Vegas, Nevada. Davis, an avid reader who can quote Ayn Rand, brought rigour and some whimsy to the enterprise, people who worked with him say. He gave several of the company’s massive boring machines literary names, such as Prufrock.

Davis’s interactions with the government weren’t always positive. Boring, which must navigate a morass of national, state and local rules to build its tunnels, has run into major regulatory challenges – particularly around environmental requirements that dictate when and if the first shovel can hit the ground.

Neighbours have also been a challenge. At one point, Davis was on track for a proposed project in Los Angeles, but nearby residents got wind of the project and sued – successfully scuttling the endeavour.

A Tesla Model X carrying Elon Musk in a Boring Company test tunnel in California.Credit: AP

Working in Las Vegas created its own set of regulatory run-ins for Boring. Tunnels the company built to connect the convention centre in Las Vegas to two nearby hotels, the Wynn Encore and the Westgate, still aren’t open to the public, more than a year after their completion.

The Nevada Occupational Safety and Hazard Administration fined Boring $US112,504 after an investigation into conditions during construction. Complaints from workers included toxic muck falling from overhead conveyor belts and an overloaded bin of muck collapsing and disgorging its contents across the work site.

Chafing at government rules has been a consistent feature of Musk’s career. Aside from Boring’s challenges, SpaceX and Tesla have had their own issues with regulators, ranging from launch approvals to mask mandates.

Critics of DOGE have speculated that the billionaire and his associates could use their influence to, say, lower budgets for regulatory bodies that have put up road blocks for his companies. Asked about Musk’s potential conflicts of interest, President-elect Donald Trump said that Musk will put the interests of the country first.

When Musk bought Twitter in October 2022, he deputised Davis to help cut costs, trim staff and rein in what Musk viewed as an overly liberal environment. Davis and his family slept in a makeshift bedroom at the company’s headquarters during crunch time, as Musk told staff to be “extremely hardcore.”

At the time, some people speculated that Davis would become CEO of Twitter. Instead, Davis returned to Boring, which has its main facilities in Las Vegas and in Bastrop, Texas, near Austin.

There, he has burnished his reputation as a cost-cutter and hard-driving boss. Davis has tended to spend more time in Las Vegas than in Bastrop, where he stays in a mobile home while in town, alongside the mobile homes of other workers. During those times, he would appear silhouetted through the window, often talking urgently into his phone until late at night while pacing around the kitchen table, according to people familiar with the company.

Former employees recount tales of being sent on flights between Austin and Las Vegas to collect or drop off a needed part, such as sensors for the tunnel boring machines. The company maintained such strict deadlines that Davis sometimes preferred to get the parts the same day rather than wait for next-day air commercial shipping.

Multitasking has proved a Davis signature, dating back to his student days.

Former employees recall the consternation that erupted when a key part got waylaid while en route to Las Vegas in a hotshot truck, a vehicle used to transport small freight from point to point. The truck, which Boring was monitoring remotely, made an unexplained stop for several hours in Arizona.

Pressure to meet one of Davis’s deadlines was so intense that the Boring Company paid for a relative of an employee who lived in the area to go track down the truck and urge the driver to get back on the road.

Davis often scheduled meetings at 7pm or later for engineers, some of the people said. He would typically participate remotely. One person who spoke with him frequently by phone said he would aim to multitask during meetings, eating while on a call.

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Multitasking has proved a Davis signature, dating back to his student days. While he was working on his doctorate in economics at George Mason University in Fairfax, Virginia, Davis was working full time at SpaceX, and also owned a frozen-yoghurt shop called Mr Yogato in Washington’s Dupont Circle.

Alex Tabarrok, one of Davis’s professors, remembers him juggling the multiple roles.

“I told him, ‘Look, you’re getting a PhD, you can’t be having a job and running a business at the same time’,” Tabarrock recalls. “Focus on getting your PhD.”

But Davis declined to give up any of his pursuits, at one time incorporating business trends at Mr Yogato into an academic paper and bringing some yoghurt into class for sampling.

Tabarrok can’t recall Davis’s grades, but says he stood out anyway. He “had so much energy, and was so entrepreneurial,” Tabarrock says.

“It’s been kind of exciting to see him become one of Elon’s most trusted right-hand men.”

Bloomberg L.P.

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