LAS VEGAS (NewsNation) — The dream of the Hyperloop appears to be over.
Bloomberg reports that Hyperloop One, the transportation startup involving capsules supported by air bearings in a low-pressure environment inside a tube, is shutting down.
The idea first originated in a 2013 paper written by now-billionaire tech CEO Elon Musk. At the time of his writing, he envisioned the Hyperloop becoming the "fifth mode of transport.”
The initial proposed Hyperloop route would have run from the Los Angeles region to the San Francisco Bay Area, roughly following the Interstate 5 corridor.
“At one extreme of the potential solutions is some enlarged version of the old pneumatic tubes used to send mail and packages within and between buildings,” wrote Musk. “You could, in principle, use very powerful fans to push air at high speed through a tube and propel people-sized pods all the way from LA to San Francisco.”
Musk’s paper became the catalyst for a venture that would raise $450 million in funds for the project.
On Thursday, Bloomberg reported that Hyperloop One is selling off assets, closing down offices and laying off employees. The company was not able to secure any contracts for building a working hyperloop system, according to Bloomberg.
The Hyperloop made only one test with human passengers. The test only reached a top speed of 100 mph.
The test track just outside Las Vegas will also be up for sale.