23 December 2023 , 17:46
911
0
Hyperloop One, the futuristic transportation company known for its vision of high-speed tube-encased travel, is reportedly on the verge of shutting down. Sources familiar with the matter have revealed that the once high-profile startup, founded in 2014, has faced significant financial challenges, leading to the decision to lay off most of its employees.
Having raised an impressive $450 million (£355 million) since its inception, Hyperloop One initially garnered attention for its ambitious plans to revolutionize transportation by building tube-encased lines that would transport passengers and freight at speeds comparable to airplanes. The company even constructed a small test track near Las Vegas to develop and showcase its transportation technology.
READ MORE: NORAD Santa Tracker 2024: Follow along as he delivers almost 8 billion gifts worldwide
The company, founded in 2014, raised over $450 million for its ambitious vision (Internet Unknown)However, recent developments indicate a shift in focus and strategy. Last year, Hyperloop One decided to pivot from passenger transport to cargo, a move that might have contributed to its current difficulties. As part of its efforts to cope with financial woes, the company is now actively seeking buyers for its remaining assets, including the test track and machinery, Bloomberg reported.
DP World, a Dubai-based conglomerate that has backed Hyperloop One since 2016 and owns a majority stake, is expected to play a role in the company's fate. It is reported that DP World will take over the remaining intellectual property of Hyperloop One as part of the winding-down process. Despite media requests, both DP World and Hyperloop One's acting CEO, Raja Narayanan, have remained silent on the unfolding situation.
Abandoned UK airport plans relaunch with budget flights to Spain and Cyprus
For all the latest news, politics, sports, and showbiz from the USA, go to The Mirror US
Controversies, including internal tensions and legal issues, have plagued the company's journey (Getty Images)Hyperloop One's troubles extend beyond financial difficulties, as the company has been entangled in various controversies over the years. Co-founder Brogan BamBrogan once found a noose on his chair, highlighting internal tensions. Another co-founder, Shervin Pishevar, faced sexual harassment allegations, and a one-time director, Ziyavudin Magomedov, encountered legal issues unrelated to Hyperloop One.
While Hyperloop One's closure marks a setback for the hyperloop industry, other companies, including Hardt Hyperloop, Hyperloop Transportation Technologies Inc., and Swisspod Technologies, continue to pursue the development of high-speed transportation technology actively.
Elon Musk, who introduced the hyperloop concept in a white paper in 2013, has also been a proponent of the field, organizing student competitions and founding The Boring Company, focused on tunnelling technology.