San Francisco, Oct 17 (IANS): The Boring Company owned by Elon Musk is likely to face penalties as it may not be able to move as many passengers it promised in Las Vegas.

According to a TechCrunch report, the Boring Company may miss out on more than $13 million of its construction budget if it fails to shuttle as many people as promised with the Las Vegas Convention Center Loop.

"It will also be penalised $300,000 for every trade show that it doesn't move an average of 3,960 passengers per hour for 13 hours, to a maximum of $4.5 million in fines," the report said on Friday.

In one of the three loading zones for the tunnel network, called the Convention Center Loop, only 800 passengers an hour are allowed.

"If that's true of all three loading zones, the Loop will only move about a quarter of what it promised: just 1,200 people an hour".

The Boring Company was scheduled to have completed the system by October 1, according to the documents but it is behind schedule.

The aim was to get it up and running for the 2021 Consumer Electronics Show (CES) but the event is now online.

According to Musk, the Loop is set to open in "maybe a month or so".

In the Las Vegas Loop, passengers will ride in Tesla Model Xs, Model 3s and a modified Model 3 that can hold up to 16 passengers at a time.

They will travel through the tunnels at speeds of up to 250 kms per hour, according to the company.

The Boring Company ‘Loop' will be able to transport people from the Las Vegas convention centre to the Resorts World Las Vegas in Tesla vehicles in just 2 minutes.

Las Vegas is one of five current cities where the Boring Company has projects either proposed, approved, or underway.