Hyperloop Could Take People from LA to SF in 35 Minutes

December 07, 2016

In this episode of TechTalk, Dave in EisnerAmper’s Technology and Life Sciences Practice, tells us about this space-age technology that could revolutionize personal travel and commercial traffic sooner than you may think.

Transcript

Dave Plaskow: Hello and welcome to EisnerAmper’s Technology Podcast series. With more than 500 hundred technology clients, we’re always interested in the latest industry trends and developments, as well as any related business and accounting opportunities and challenges. Today’s topic is the Hyperloop. I’m your host Dave Plaskow, and with us today is Dave Katz, Senior Manager in EisnerAmper’s Technology and Life Sciences Practice. We like to call this TechTalk. Dave, welcome and thanks for being here.

Dave Katz: Pleasure to be here Dave.

DP: So Dave, the Hyperloop – it sounds part science fiction and part amusement park ride. What are we talking about here?

DK: So we’re talking about a transportation system where pods will be enclosed in depressurized tubes, and by using magnetic levitation technology and eliminating friction and air resistance, Hyperloop may be able to reach speeds of more than 700 mph. So we’re talking Los Angeles to San Francisco in 35 minutes. Travelers may be unsettled by those speeds – developers liken it to riding in an elevator.

DP: Ok. And where would the infrastructure for this live?

DK: Maybe above ground, below ground, underwater, or some combination in-between.

DP: Ok. And whose ideas was this?

DK: It was originally conceived by Elon Musk, also famous for the Tesla auto and Space X.

DP: And what are some of the pros and cons of the Hyperloop?

DK: Clearly there are huge costs and time savings by moving both people are cargo in such a rapid manner. Also, based on the propulsion method, the Hyperloop has zero carbon emissions. However, it’s not without its challenges. Construction estimates for a Hyperloop from LA to San Francisco vary from $6 billion to $100 billion. And with certain disruptive technologies, safety is a concern. And the issue of land rights and eminent domain are certainly likely to come into play.

DP:And where does the project stand today?

DK: So in ’15, Musk announced a Hyperloop design competition, and a company called Hyperloop One took the challenge. In May 2016, the company conducted a test in the Nevada desert. It’s a limited run, about the size of a football field, but the Hyperloop One team described those results as a Kitty-Hawk-type moment. And on the heels of that test, Hyperloop One agreed to do an economic feasibility study on how to deploy the system at Dubai’s Jebel Ali Port. DP World, which is the third largest terminal operator in the world is interested in a possible submerged or floating Hyperloop system to rapidly move cargo, and Hyperloop One is targeting 2019 to move cargo and 2021 to move people.

DP: This could be huge for the commercial sector. Obviously, an undertaking of this is going to have a big price tag. Tell us a little bit about the Hyperloop One’s financing.

DK: Sure. So Hyperloop One is headed by venture capitalist Shervin Pishevar whose firm is a major funder of Uber. But the Hyperloop project is a collaborative effort that includes other VC firms, transportation specialists, technology experts, dozens of engineers, and those with political backgrounds, as well as hundreds of open-source participants. To date, Hyperloop One has secured $120 million in funding, and Pishevar has indicated that additional cash generated by Uber could go into Hyperloop development.

DP: What role will accounting professionals play in all of this?

DK: We see this potentially impacting a host of industries, such as clean tech manufacturing and government contracting, just to name a few. And there’s also going to be a need for forensic accounting professionals with all the money being thrown around and invested in the space—so are international tax specialists to deal with international investing and complex issues such as transfer pricing.

DP:Would you ride in one?

DK: As long as the safety aspect gets vetted, the idea of getting from North Jersey to a client in Philly in 20 minutes or so is very intriguing.

DP: I would if it did feel like an elevator – going under water might freak me out. So Dave, as always, thanks for your expertise and great insight.

DK: Thanks Dave.

DP: And thank you for listening to TechTalk, as part of the EisnerAmper podcast series. Visit EisnerAmper.com for more information on this and a host of other topics, and join us for our next EisnerAmper podcast, when we get down to business.

About John Pennett

John Pennett is the Partner-in-Charge of the National Technology and Life Sciences Group and works closely with our IPO clients and their circle of legal and underwriting advisors to take an IPO from concept to close.

More in This Series

An Entrepreneur’s Life Experience Fuels Mission-Aligned Startup

Learn about CEO of HearMe Adam Lippin's idea and how it became the leading, on-demand, peer support application—and his secret sauce for its continued expansion.

Using AI to Recreate the Travel Experience—for Business and Pleasure

In this TechTalk episode, Dr. Mike Remedios of Onriva talks with EisnerAmper host Amar Bhatkhande about Onriva’s use of artificial intelligence to empower the suppliers and buyers of business travel.

How Entrepreneurs Can Succeed in the Travel Industry

In this TechTalk episode with EisnerAmper host Amar Bhatkhande, Vajid Jafri of Onriva talks about how he’s succeeded in the travel industry and offers advice for other entrepreneurs.

Bootstrapping: Meet an Entrepreneur Who Raised Capital from Customers

In this episode of TechTalk, AGK Karunakaran of MulticoreWare joins EisnerAmper host Amar Bhatkhande to debunk the myth that entrepreneurs need venture capital to grow a successful business.

How Data Is Reframing the Global Health Care Conversation

In this episode of TechTalk, health care innovator and advanced technology expert Radhika Iyengar and EisnerAmper host Amar Bhatkhande discuss how blockchain and artificial intelligence are transforming the health care industry—and its future.

How One Entrepreneur Is Using Technology to Solve Health Care Challenges

In this episode of TechTalk, Dipty Desai, Ph.D. of Innovaccer, joins EisnerAmper host Amar Bhatkhande to discuss her journey as a researcher, entrepreneur, funder, and mentor where she uses technology to solve health care issues.

Taking the Plunge: From Techie to Entrepreneur

In this TechTalk episode, EisnerAmper host Amar Bhatkhande asks Rajesh Abhyankar of MediaAgility about how he started and grew his global digital consulting business to upwards of 400 employees—and what excites him about the future.

EisnerAmper's CEO on Growing With an Entrepreneurial Mindset

In this TechTalk episode, EisnerAmper host Amar Bhatkhande sits down with EisnerAmper's CEO Charly Weinstein for a conversation about leading and growing a business.

Lessons Learned from the Theranos Dissolution

A senior manager in EisnerAmper’s Technology and Life Sciences practice, talks about the rise and fall of Theranos. He explains what took them from biotech unicorn to dissolution, the fallout, and how companies and investors can mitigate risk.

Ride Sharing Capped in NYC

In this episode of the Dave & Dave Show, we look at New York City’s proposed annual cap on the number of ride-sharing vehicles, such as Uber and Lyft, and the larger implications for this unique urban initiative.

New Cryptocurrency Focuses on Price Stability

Cryptocurrency still has the reputation for significant price swings. In this episode of the Dave & Dave Show, we look at a new contender—with some big backers—that’s tied to the U.S. dollar to help temper that volatility.

Drones, a Farmer’s New Best Friend?

TechTalk takes a look at a tech startup, Aerobotics, that is using drones to help farmers in South Africa.

A 3D Printed Community

In this episode of TechTalk, we look at a 3D-printed housing community for needy families in El Salvador, the goals are, some of the attached business issues, and how this could be a technological game-changer for affordable housing.

At-Home Genetic Testing Goes Beyond Just DNA

The Dave and Dave Show looks at 23andMe’s DNA test-taking kit, its recent approval by the FDA to scan for certain breast cancer genes, where the market is headed, and what it means for the biotech industry and its business advisors.

Amazon Stays Busy

TechTalk examines a few interesting things Amazon is up to on its march toward global e-tail domination, such as its choosing a city for its new headquarters, its foray into health care, Amazon Go and more.

Apple Watch EKG

This episode of TechTalk, we cover a unique, FDA-approved EKG device for the Apple Watch. We’ll discuss the science and the business behind this promising new technology, as well as how the market for smart watches is doing.

Technology Potpourri

In this final TechTalk podcast of 2017, we examine the technology headlines that caught our attention toward the end of the year, including net neutrality, the data hack at Uber, some misbehaving drones and what might be on the menu for 2018.

Is AI Destined to Replace Fund Managers?

In this episode of TechTalk, we talk about the debut of the world’s first ETF powered by artificial intelligence (AI). We discuss the technology behind it, if it impacts a fund’s expense ratio and, most importantly, how it’s performing.

Looking into Facial Recognition Technology

The iPhone X has put a renewed spotlight on facial recognition technology. Dave Katz gives us a history on this type of technology, some of the privacy and security issues, what the market looks like and which companies are leading the charge.

Supersonic Air Travel Coming Back with a Boom

In this episode of TechTalk, we discuss the technology and financing issues related to the possible return of supersonic air travel.

Is Roomba Vacuuming Up Data on Your Home?

Will the robot vacuum collect customer household data and offer it to technology companies to enhance internet of things devices? Here is what information is being collected, potential data privacy and security issues, and iRobot’s response to consumer concerns.

Tesla Gets Chinese Backing

In this episode of TechTalk, Dave Katz tells us about electric car company Tesla receiving a significant investment from Chinese technology giant Tencent.

Amazon's Acquisition of Dubai Based E-Commerce Company Souq.com

TechTalk discusses recent mergers and acquisitions in e-commerce including Amazon's recent acquisition of Souq, a Dubai based e-commerce company.

The Market for Tech Talent

With tech jobs are estimated to double over the next decade, we discuss the market for tech talent and what the forecast for tech employment looks like.

Amazon Go Wants to Streamline Your Grocery Shopping

Dave Katz, Senior Audit Manager in EisnerAmper’s Technology and Life Sciences Practice, and Richard Colloca, Partner-in-Charge of EisnerAmper’s Food and Beverage Group, discuss Amazon’s plan to use 'Just Walk Out Technology.'

Being Taken For a Ride – The Self-Driving Car

David Katz gives a “state of the union” on self-driving cars, an overview of Uber’s unique experiment in Pittsburgh, and a glimpse of what we can expect in the marketplace.

Biotech Faces a Real Estate Shortage

In this episode of TechTalk, we learn about the real estate shortage for biotech hubs, the challenges of obtaining new space, how early-stage companies are coping, and what’s on the drawing board to help alleviate the shortage.

Is the Commercial Drone Market Ready for Takeoff?

David in EisnerAmper's Technology and Life Sciences Practice, discusses the commercial drone market, including potential markets, barriers to entry and where capital investment is headed.

Virtual Reality

We discusses some of the financial aspects of virtual reality, such as investment, valuation, revenue recognition and more.