Toggle light / dark theme

Russia’s hyperloop dream is undone

Posted in business, economics, Elon Musk, finance, transportation

Sad for Russia.


President Vladimir Putin and other Russian officials dream of a technological leap that could immediately close the gap between Russia and more advanced economies, as Sputnik did for the Soviet Union. The hyperloop, a kind of train in a tube that can reach speeds of up to 700 mph, fits that dream, and a well-connected Russian businessman has invested in it — only to see the project become embroiled in a lawsuit involving a Silicon Valley startup’s founders and claims of financial mismanagement.

Elon Musk, Tesla’s chief executive, proposed the hyperloop four years ago. This “fifth mode of transport” would involve a system of practically airless tubes through which magnetically levitated pods could carry passengers and cargo. Musk has not set up a company to bring the project to reality, but others have. For example, Hyperloop Transportation Technologies, wants to build a system in Slovakia. Another, Hyperloop One, offered a public demonstration of some elements of its technology in May.

Hyperloop One has seemed the most advanced project, and Russian investors showed an interest from the start. The state-owned Russian Direct Investment Fund took a small stake in the company, but Ziyavudin Magomedov, head of Summa Capital, was the most enthusiastic Russian investor, putting up money for both of the company’s funding rounds.

Read more

Leave a Reply