'Vegas Loop' in Las Vegas, USA [Getty Images/AFP=Yonhap News file photo]

The valuation of The Boring Company, an underground tunnel construction startup founded by Elon Musk, is expected to increase by 3.5 times in four years.

According to The Wall Street Journal (WSJ) on the 25th (local time), The Boring Company is in discussions to raise $4 billion in funding, which would bring its valuation to $20 billion (approximately 29.2 trillion won).

This is about 3.5 times its valuation of approximately $5.7 billion during its previous funding round in 2022.

Spun off from SpaceX in 2018, The Boring Company uses tunnel-boring machines to dig underground tunnels and subsequently operates or leases them.

It currently operates the "Vegas Loop," an underground transportation network that shuttles passengers between the Las Vegas Convention Center and the city's hotel-dense downtown area using Tesla vehicles.

Recently, the company has been developing a new loop in Nashville, Tennessee, and in February, it signed a memorandum of understanding (MOU) to construct a 17km-long loop in Dubai, United Arab Emirates (UAE).

However, several projects it had pursued in cities such as Baltimore, Chicago, and Los Angeles have either been scrapped or suspended.

Nevertheless, the WSJ assessed that investors view investments in Musk-led companies as a guaranteed source of profit and appear willing to pay a premium for the opportunity to invest.

Steve Davis, President of The Boring Company, did not respond to a request for comment regarding this funding round.