The Russian government is pitching Elon Musk on the idea of using his Boring Company to build an undersea rail tunnel across the Bering Strait that will connect Russia and the U.S. State of Alaska.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
Officials in the Kremlin are reportedly offering for the tunnel to be partly funded by the Russian government. According to media reports, an investment envoy for Russian President Vladimir Putin is pitching the Tesla (TSLA) CEO on the cross-border tunnel that would effectively link the U.S. and Russia.
On social media, Kirill Dmitriev, who is head of Russia’s sovereign wealth fund, referred to the project as “the Putin-Trump Tunnel – a 70-mile link symbolizing unity.” Dmitriev added that the tunnel would likely cost $65 billion to construct and that the privately held Boring Company could complete the project within about eight years.
Feasible?
However, it’s not clear whether such a tunnel would even be feasible given that it would be built in the high Arctic, where the Bering Strait is largely frozen for much of the year. The push for the “Putin-Trump Tunnel” comes after a recent telephone call between Putin and U.S. President Donald Trump and ahead of an in-person meeting between the two leaders to discuss a potential end to the war in Ukraine.
Analysts have been quick to point out that construction of an undersea tunnel in the Bering Strait would require Musk’s Boring Company, which does specialize in constructing tunnels, to work through below-freezing temperatures in a region without existing infrastructure that contains heavy sea ice and experiences regular earthquakes. So far, Musk has not commented publicly on the proposed tunnel.
Is the SPDR S&P 500 ETF Trust a Buy?
The SPDR S&P 500 ETF Trust (SPY) currently has a Moderate Buy rating among 504 Wall Street analysts. That rating is based on 421 Buy, 78 Hold, and five Sell recommendations issued in the last three months. The average SPY price target of $756.35 implies 14.18% upside from current levels.
