Hyperloop Could Take People from LA to SF in 35 Minutes
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.
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.
EisnerAmper’s Technology and Life Sciences practice talks about the Theranos dissolution, and what took them from biotech unicorn to dissolution. Investors must use due diligence and consider a company's internal controls before investing in companies with high valuations.
EisnerAmper's Technology podcast series discusses the proposed New York City Council cap on the number of ridesharing vehicles such as Lyft and Uber in Manhattan to ease congestion. How will this cap change Uber's valuation, and what is the economic hit to the taxi industry?
This episode of the Dave & Dave Show discusses new cryptocurrency technology from the fintech startup company Circle, called USD Coin. This cryptocurrency ties itself to the U.S. Dollar, therefore eliminates some volatility that comes with crypto mining and Bitcoin.
TechTalk takes a look at a tech startup, Aerobotics, that is using drones to help farmers in South Africa. This podcast discusses how the drones help South African farmers, how the US government is using drones and how MIT is making micro drones.
TechTalk discusses a new 3d printed community proposed in El Salvador by the nonprofit New Story and ICON construction. Icon and New Story debuted their 3D printed house at the Austin South by Southwest festival. Issues discussed include cybersecurity and valuation.
Life Science Partner Dave Katz discusses the new 23andMe DNA testing kit for breast cancer BRCA1 and BRCA2 gene mutations approved by the FDA, and what it means for the biotech industry. The FDA approved 23andMe DNA breast cancer test increases access to health care information.
TechTalk examines Jeff Bezos' new possible Amazon facility cities of Austin, New York City, Washington DC and Atlanta, with Atlanta being Dave Katz' first pick. They also discuss Amazon Go, and Amazon's healthcare initiative with Berkshire Hathaway.
EisnerAmper’s technology podcast discusses the first FDA approved EKG band for the Apple Watch. Dave Katz of the Technology and Life Sciences practice discuses these new medical devices, their use of artificial intelligence and the cybersecurity issues surrounding them.
EisnerAmper’s technology podcast discusses related business and accounting opportunities with the senior manager in its Technology and Life Sciences practice about Uber, drones, internet providers and net neutrality, IPOs, AI and the R&D credit that may expire next year.
Is AI Destined to Replace Fund Managers? This episode of TechTalk talks about the first ETF powered by artificial intelligence (AI), the technology behind it, if it impacts a fund’s expense ratio and, most importantly, how it’s performing.
It was a milestone when Facebook implemented facial recognition software in 2010. The iPhone X has put a renewed spotlight on facial recognition technology. EisnerAmper’s Technology and Life Sciences Manager discusses security issues surrounding facial recognition technology.
Supersonic air travel is coming back with a boom. What does today’s market look like for supersonic air travel and how are start-ups such as Boom and Aerion navigating the many challenges? Also discussed is mergers and acquisitions and the need for valuations.
Is iRobot’s Roomba automated vacuum collecting consumer data that will be offered 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 has received a significant investment from Chinese tech giant Tencent. This podcast discusses what Tesla plans to do with the cash infusion, Tencent’s ownership stake and how this could help both companies enter the highly coveted self-driving car market.
Amazon’s CEO Jeff Bazos just passed Warren Buffet to become the second wealthiest person on the planet. In Technology M&A news, Amazon competes with Alibaba by buying Dubai based Souq in a battle over E-commerce in the middle east, as reported by EisnerAmper’s Life Sciences Practice.
With retiring baby boomers some of the fastest growing jobs in technology attracting tech talent are located in New York City, San Francisco, Austin and Seattle. Tech talent can come from non-traditional backgrounds and there is strong hiring growth in hubs such as New York City.
Amazon Go wants to streamline your grocery shopping. This podcast discusses Amazon’s plan to use 'Just Walk Out Technology' to change food shopping. A look at the technology behind Amazon Go, potential speedbumps and what it could mean for bricks-and-mortar grocery chains.
David in EisnerAmper’s Technology and Life Sciences Practice, 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 over the next few years.
This episode of TechTalk we discuss the commercial real estate shortage for the nation’s biotech sector. Life science and biotech companies in hubs like Boston and San Fran are seeking out real estate in the suburbs in order to afford space to expand their businesses.
David discusses the commercial drone market, including how the FAA will regulate pilot licenses, drone use in real estate, Amazon's use of drones for future deliveries, the VC market and M&A strategies for companies interested in investing in drone technology.
David discusses virtual reality including Facebook's acquisition of Oculus, HTC's Vive and revenue recognition that comes from virtual reality technology. HTC has created the Vive X Fund and Facebook has created a similar fund to help develop virtual reality software.
