(In any case, the answer here isn’t a technical one, it’s political. And NYC/New York State lacks the political will or desire. A third party private company won’t solve that)
That and all the Manhattan Schist that needs to be excavated. New York certainly isn't built on mud.
Cheap depends on context. Here, on R&D, creating excellent machines, mass produced, and reused with high duty cycle, embedded in a big high-productivity surrounding process, all amortized and enabled by scale. And also on tunnel characteristics, especially small diameter (many costs scale roughly with face area). These are not well matched to existing markets. The sweet spot really is in system design, not merely in fancy small TBM design. The scale permits the cost that permits the scale.
> custom public transit that allow only for electric cars with compatible self driving systems
Access could indeed be an interesting issue at some point. But at present, company focus is on dedicated mass transit shuttle bus/vans. More analogous to rail transit, than to highways.
Unless people are going to start living underground. Then you start to remove the above ground choke points ;)
At the risk of downvotes... Here's my work-in-progress theory (v0.1):
Musk isn't a tech genius, (or maybe he is, but irrelevant) he's a regulation genius. (Which allows him to also be an effective fundraiser, but again, irrelevant.)
Musk's MO is to enter a niche, mostly uncontested and unregulated area of an otherwise over-regulated market. Then make a whole lot of noise about why this niche is so different and special and going to be so groundbreaking, which is really just cover for "why existing regulations shouldn't apply to me." Then as regulations (and subsidies) for that niche market are created, make sure that they favor his company (which already has a beachhead), while still being a barrier to market for any new-comers hoping to ride his coat-tails. Continue until level of regulation roughly matches the rest of the (non-niche) industry, ensuring niche status while becoming a competitor in the overall (non-niche) market. This happens as everyone realizes the final product, as finished, probably wasn't special enough to be excluded from the (non-niche) market regulations.
See: (in decreasing rank of success)
PayPal-> Banking
SpaceX-> Rockets/Aerospace
Tesla-> Cars
Giga-factory/ Tesla assembly automation -> manufacturing
Boring Company-> Subsurface Construction
Solar City-> Power Utility
Not-a-flamethrower -> flame thrower market???
Scuba rescue tank-> pedo scuba rescue market???
There are obviously some places this fits and others it doesn't. There's also some level of genius in how batteries/electric cars/solar/power-grid play off of one another, but nothing non-obvious. I suspect he wanted to make an earlier play in ride-sharing, but Uber beat him to it, with a similar strategy. This is now delayed until self-driving (re)allows for the regulatory advantage.
But the intended overall playbook starts to become obvious.
Back to Boring Company: I suspect skirting the existing regulations isn't going quite as well as desired because:
1- people realize his technology isn't all that special, even if it is (self-imposed) niche. (This is a failure in how hyperloop played out.)
2a- Subsurface engineering regulations aren't all that interesting, at least as far as looking for creative ways around them
2b- the regulations that are there have a pretty good (non-arbitrary and simple) engineering purpose. (Which is another way of saying the existing market is not actually over regulated)
3a- nimby politics plays a major role
3b- local governments (clients) don't have the power and/or money to override regulation politics
To answer: the Boring Company can't go and bid on bigger projects (yet) because then they would completely burn their niche status, which would admit to the world it's just another subsurface drilling company, and should be treated as such. They have to delay until their personalized regulatory system has been built, acknowledged, and subsidized. Then you can go after the regular projects that don't justify a special regulatory framework.