I am of two minds about self driving cars. From a technology point of view, I think its great, but I don't really see what problem they solve that would not be better solved by ubiquitous public transportation (trains, mostly). Now, Musk wants to carry cars on sleds through tunnels under LA? Why not just build some damn trains?
EDIT: the real news is that he wants to improve boring machines which is not a bad goal. There will be more and more tunnels regardless of what you actually put in them, so faster, more efficient boring is a worthwhile goal.
Compare that to Seattle, where my friend got lost trying to get from the light rail to the incredibly slow train up to Vancouver because they're several blocks apart. And then had to do the same on the Vancouver end for the same reason. To make matters worse, the train between the two cities is actually slower than the train between Tokyo and Hiroshima, with roughly 3x the distance.
Keep the trains, but replace buses, taxis, and probably quite a lot of private cars with an automated fleet. It would be a huge change, a huge improvement in many lives.
(See also: Channel Tunnel)
Isn’t that called “a train”?
Plus, like with most rail systems, you get the big benefits of having a custom right-of-way. No need to contend with pedestrians, people parking in the traffic lane, vehicles that aren't as fast as others, etc etc.
Of course... if you want to build a new underground right of way, what's the best way to use it? Is a big open question in my mind. You could go for electric BRT, for instance, or big-dig style freeway.
A crash at that speed would wreck that tunnel and put it out of service for weeks.