The Big Flop - Hyperloop: Elon Musk's Fast Lane to Flopdom with Aparna Nancherla and Greta Titelman | 58

Episode Date: October 21, 2024

When Elon Musk boasted to Shervin Pishevar about inventing a revolutionary form of transportation, Pishevar took him at his word — turns out with Elon, that's a huge mistake. Musk promised travel at the speed of sound, unprecedented city connections, and a complete societal transformation, but conveniently left out the potential for catastrophic failure. After wasting millions of dollars and buckets of clout on the promise of Hyperloop, MULTIPLE billionaires are still reeling from the experience. At least they're not being sucked into a deadly vacuum! Or would that be a good thing?Aparna Nancherla (BoJack Horseman, The Introvert's Survival Guide) and Greta Titelman (Problemista, Senior Superlatives) join Misha for the ride of their lifetimes with Hyperloop.Follow The Big Flop on the Wondery app or wherever you get your podcasts. You can listen to The Big Flop early and ad-free on Wondery+. Join Wondery+ in the Wondery app or on Apple Podcasts.See Privacy Policy at https://art19.com/privacy and California Privacy Notice at https://art19.com/privacy#do-not-sell-my-info.

Wondery Plus subscribers can listen to The Big Flop early and ad free. Join Wondery Plus in the Wondery app or on Apple podcasts. On November 8, 2020, Josh Geigel, Chief Technology Officer at Virgin Hyperloop, and his colleague Sarah Luchian, Director of Passenger Experience, strapped themselves into a sleek, futuristic pod inside a tube, ready to embark on a groundbreaking journey. This is no ordinary test run. It's a trial of Hyperloop, a revolutionary transport system dreamed up by Elon Musk. It promises to travel at the speed of sound and potentially transform the future of human transportation. The sleek capsule, the very expensive result of years of meticulous development rests on a

test track in the Nevada desert, which is adorned with cyberpunk purple lights exuding a distinctly sci-fi vibe and an air of danger it probably deserves. In a worst-case scenario, the passengers inside the tube could boil alive in seconds. But Josh and Sarah have a job to do. With their fighter pilot seatbelts fastened and cute little headsets on, they can't help but smile as the engineers count down three, two, one, and off they go! Destination the future. The pod accelerates, shaking its giddy passengers. Josh keeps repeating.

That was awesome. But in just 20 seconds, the ride is over. The capsule comes to a full stop. They've gone all of 500 meters. And you can forget hyper speed. This thing barely broke 100 miles per hour. Any lead footed driver could have done that without spending millions of dollars. Unfortunately, the Hyperloop team will be slow to grasp that

their precious project is quickly going nowhere. The money will soon run out. But hey, being broke beats boiling to death in a tube. Hyperloop. Magnetic pods levitating inside a tube at more than a thousand kilometers per hour. Theoretically you could go even faster than the speed of sound. Hyperloop has already gotten a huge boost out of Elon Musk's initial idea. What is the path for bringing this idea to reality? How realistic is this? Is this really going to work?

Yes, it's going to work. The long planned Hyperloop project appears to be canceled for good. We are on a sinking ship. From Wondery and AtWill Media, this is The Big Flop, where we chronicle the greatest flubs, fails and blunders of all time. I'm your host, Misha Brown, social media's superstar

whose blood is always boiling at Don't Cross a Gay Man. And today, we're talking about Hyperloop, Elon Musk and Richard Branson's vision of supersonic subterranean transport that turned into a half-billion dollar pipe dream. Get ready for Las Vegas style action at Bet MGM, the king of online casinos. Enjoy casino games at your fingertips with the same Vegas strip excitement MGM, the king of online casinos. Enjoy casino games at your fingertips with the same Vegas strip excitement MGM is famous for when you play classics like MGM Grand Millions or popular games like Blackjack, Baccarat,

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If you have questions or concerns about your gambling or someone close to you, please contact Hey all sports fans, it's Roger Bennett from the Men in Blazers Media Network and we are Gaming Ontario. On our show today, we have two amazing comedians, actors, writers, podcasters. Wow. They really do it all. It's Greta Tittleman and Aparna Manchella. Welcome to the show. Thank you. Wow. In sync. Yeah. I actually don't have a podcast, but I've done several. So I don't know. Does that count as being a podcaster? I think it counts.

Yes. Aparna has been on my podcast. And I think that being an iconic podcast guest, asparna is does make you a podcaster. Absolutely. Oh my gosh. Thank you guys for the affirmation right off the top. So I guess before we get into Hyperloop, here's a question. If you could travel 760 miles per hour, where would you go for lunch?

Oh God. I feel like just because it's on the top of my mind, I would go to Tokyo. Oh, that is perfect. Tokyo's on my list of places I've never been and I would absolutely love to go, but for some reason, New Zealand popped in my mind. Sure. Okay. Yeah. Famous for lunch. Famous for lunch.

Famous for lunch. Famous for lunch. Yeah. You know what they say. Known for sheep and lunch. Well, we'll make a date of it. So today, we're covering Hyperloop, a transport system that promised to take us into the future at warp speed, but stalled out from the get-go.

At the center are three tech egoists who figured they could do the impossible, including zaddy Richard Branson and, of course, naughty billionaire who ruined Twitter, one of the world's worst dads, tech bad boy Elon Musk. Now, honestly, he is a treasure trove of flops and we are going to mine that sucker till the end of time. But this flop owes its existence mostly to Shervin Pichavar, a venture capitalist with a flair for the dramatic, can't. I know Shervin, what a name. Why do we not know his name more?

I know. And also his name sounds like Sherwin, which seems like for a venture capitalist, what better name? He should have changed it. Yeah. He should legally change it. Well let's rewind back to the year 2012. Elon Musk and Silicon Valley investor Shervin Peshavar are flying around in Musk's private jet, as you do.

Mm-hmm. And now, there is a lot to unpack in that statement, but you get the sense that Peshavar likes throwing money and weight around, right? Yeah. Sure. So when he was a child in Iran, Peshavar and his family were targeted by Ayatollah Khomeini's government,

so they fled. And since then, Peshavar's become extremely wealthy and has dedicated himself mainly to two things. First, flying to places like Benghazi to meet Libyan rebels with do-gooders like Sean Penn. And two, partying like there's no tomorrow with high rolling tech bros. And sometimes both at the same time. Wow. That perfectly tracks. That tracks to me.

I'm like, that is what that person does. I feel like if you were to write him down in a treatment or something for a television show, some exec would be like, well, that just seems a little unrealistic. And it's like, no, that is what these people do. Yeah. I also feel like if he hangs out with those type of people, like they're probably always hobnobbing with fancy people and they're like, you got to hear Sherwin's Ayatollah story. He's always dropping that.

Yeah. Well, also as a venture capitalist, he's actually a super angel investor with a diverse portfolio including stakes in Airbnb, Uber, Slack, Robinhood, and Postmates. I mean, it's very like Ashton Kutcher adjacent. I feel like that's a lot of what makes up his kind of VC portfolio. But I love that he's like, I'm not just an angel investor. I'm a super angel. Super angel.

I know that seems like Victoria's secret level angel. Yeah. It is. He's the Gisal of angel investors. So in this jet to Cuba, like usual, Musk is going on and on about some genius idea that's going to change the world. This one is a theoretical way of transporting people at hyperfast speeds through vacuum tubes. Pichavar, immediately

obsessed. He wants to, no, he needs to make the hyperloop a reality. I keep on thinking of when you go to the drive-through at the bank and you put the tube, and remember when you were a little kid and then you'd be with someone, an adult that was going to the bank and then you get the lollipop, does anybody remember that? Yes. Yes. I want to be the lollipop in the tube. I do feel like that technology at that age, you were like, wow, anything is possible.

Anything is possible. Truly. And me thinking, scratch and sniff stickers and the tube at the bank, that is future. Yeah. We are there. We've arrived. Well, if Hyperloop works, it could connect cities like LA to San Francisco in just 35 minutes, not to mention all the other cities it could connect. For instance, if you think about Las Vegas, one of the world's biggest tourist attractions, it's pretty much in the middle of nowhere. Solve the transportation issue and you've hit the jackpot. Hyperloop would be a literal money train.

What are some other cities you'd like to connect if you could? I'm going to have to say Los Angeles and Tokyo. I'm gonna have to say Los Angeles and Tokyo, okay? So for the next year and a half, P. Chavar keeps pestering Musk and Musk keeps brushing him off until they both find themselves at a tech conference in May of 2013. And while on stage, P. Chavar puts Musk on the spot and gets him to publicly explain the Hyperloop idea. In classic Musk form, he rushes through the pitch and sort of promises to release a report on the idea by late summer. A year later, Musk finally puts his thoughts into what he calls the Hyperloop Alpha Paper.

Of course it has the word alpha in it. The Alpha Paper outlines a theoretical system that transports passengers in aerodynamic aluminum capsules sent through airless frictionless tubes powered by motors running on clean solar energy and reaching speeds of 760 miles per hour. As PBS says, that's a whisker shy of breaking the sound barrier. So that's really fast. Just a whisker. Just a whisker.

Yeah. Just a whistler. The tubes, Musk claims, must be raised up, like oil pipelines, or buried underground in tunnels, eliminating the need to buy or lease land. Oh, I see, like in the air or underground. Okay. I was like, aren't those the only two? But he means like not on the ground, like above. Okay. Above or below.

Actually, Musk makes a lot of claims in the Alpha Paper and to find out a few more, let's play a game. It's time to get into the mind of Musk. I'm going to tell you about some of Elon's wild statements in his Alpha paper, and you're going to have to fill in the blanks. In the Alpha paper, Musk coins Hyperloop as the fifth mode of transportation. He's referring to auto, plane, train, and ship.

For fun, name any other modes of transportation that might be more reasonable than a hyperloop. Helicopter? Yeah. Bicycle? Yes. Light rail? Mm-hmm. Motorcycle? Odd-air balloon? There you go. Gondolas. The list goes on and on, Elan. All right, next question. Since the capsules or pods will be moving quickly and windows are not part of the design,

how does Musk suggest they distract passengers during the trip? Hint, there's more than one answer. Is it A, live entertainment, B, fake landscapes, C, a hibachi lunch, or D, personal entertainment systems? I'm hoping it's hibachi lunch. I'm hoping because if you were like, Greta, let's take the hyperloop from here to San Francisco. I'd be like, I don't know, it sounds kind of weird.

And you're like, but it's a Benihana hyperloop. I would be like, okay, let's go. I think I would be a little afraid of eating at that speed, but maybe personal entertainment system? I'm going to go live performance because this man's crazy and I feel like he would be like we could have a singer-songwriter and break their career on the Hyperloop. Your body is a wonderland. Literally. Yeah.

Yeah. So the answer is fake landscapes and personal entertainment systems. Because nobody's gonna be able to look at their phone for 30 minutes, I guess. All right, this next question is a two-pronged, fill-in-the-blank question. Mad Libs, if you will.

Okay. Hypothetically, Musk says the pods would depart every blank number of minutes from each terminal carrying a blank amount of people. I feel like he's a very obviously lofty man. I think he's on some, the pods are departing every five minutes and are going to carry a hundred passengers a pod. Wow. I was going to also say in that range, I was going to say seven minutes, I was like maybe around subway wait times and then yeah, a hundred per pod.

I don't even know how many people are in a subway car. I'm going to go 75. Well I feel like we're highly underestimating Musk's delusion because he thinks they're going to leave every two minutes. Yeah, that's very close together traveling that fast, but only carrying 28 people. Oh, so this is like the train at the Denver airport. You're like, Elon, sweetie, the Hyperloop exists, have you not ridden the train at the Denver airport?

That train only carries 16 people. It goes less than a mile. Yeah. He also says though that during rush hour, the pods would leave every 30 seconds. Wow. What is this man talking about? I do want a hit of whatever he is smoking for like one day just to see. All right. Final question. for like one day just to see.

All right, final question. Considering it's 28 people shooting off in a pod every 30 to 180 seconds, how many passengers could theoretically use the Hyperloop per year? Math away. You should know that my math teacher, my junior year of high school did ask me if I was cognitively okay. So I'm just going to shoot for the moon here and I'm just going to say 10 million. Yeah, because I can't even get to how many that would be in a day.

Because I'm like, how many 30 seconds are there in a day? And then my brain gave up. All right. Not too far off. The answer is 7.4 million. Whoa, you were close. I was really close. Take that, Mrs. Whatever. Take that.

Sounds like you're cognitively off the charts. Yeah. Up the charts. Oh, sports greatest telenovela, so much drama, so much narrative, so many neck tattoos. And if you're soccer curious, come and join us here on the Men in Blazers Media Network, where we break down all of the big games, celebrate all of the global stars. You know, the ones your friend who studied abroad is always banging on about the bar to try and impress people. We also have interviews with some of this country's biggest athletes and celebrities who've seen the light and become massive football fans themselves. Matthew McConaughey, John Oliver, Will Ferrell and the Sixers' Joel

Embiid who loves his football. Come and join the Men in Blazers community. Subscribe now on your favourite podcast platform and listen ad free on Wondery Plus. Courage. Hey, Nick. Hey, Jack. What's going on over there? You know, we've done over 1000 episodes of our pop business news podcast and we've covered over 3000 business stories. But what is your point, man? I was just thinking, what if we went deeper and told the surprising stories behind the most fascinating products we use every day. Jack, I love it. Are you thinking what I'm thinking, man?

Spin-off podcast. From Wondery and T-boy, that's us. This is the best idea yet. A podcast about the untold origin stories of the products you're obsessed with. Like the Happy Meal. Did you know that Ronald McDonald didn't invent this iconic kid's meal?

A bomb in Guatemala was behind this idea. Or the Levi's 501s. The most popular jeans don't exist without two immigrants in the California gold rush. Come for the thrilling untold stories behind your favorite things, but stay for the actionable business insights we'll share along the way. Follow and listen to the best idea yet on the Wondery app or wherever you get your podcasts. Well, P. Chavar can't wait to get started. If successful, Hyperloop would not only change the way we travel, it would free up where we can work and it would make P. Chavar a much richer, seemingly cooler man. Now he's no scientist, so he doesn't realize Hyperloop is basically impossible.

But he's a consummate, networker, and a major donor to the Democratic Party. So same thing. So he scores a meeting with President Barack Obama and pitches him on the Hyperloop project for 30 minutes straight. Whoa, imagine how many Hyperloop rides that is. That math you could do. It's 60, right?

60. Okay. That's 60. Well, he convinces Obama to have the Office of Science and Technology Policy review the idea. He also pitches the scheme to Google founder Larry Page on Page's yacht while they're watching an America's Cup race in San Francisco. I actually do believe that once you are of billionaire status, you lose the ability to do anything normally.

Like, can you just go to a park? You could even go to like the Ritz-Carlton and have like a fancy cocktail and do something expensive and high-end, but like, it's always like, and we were on the helicopter to Zurich and like, you know, and I was taking caviar bumps and then like, it's bumps and then it can't just be chill. Yeah. Well, P. Chavar, he sets up Hyperloop Technologies and stacks it with influential board members. Although Musk is P. Chavar's number one pick to be number one, he has to settle for venture capitalist David Sachs, who was formally the COO of PayPal.

Peshavar actually gets Musk's blessing to hire Sachs at Peshavar's 40th birthday party, which takes place on a private island in the Virgin Islands. Okay. I mean, that honestly seems more low key than what I was thinking. Yeah, it does. That sounds like a terrible birthday party. Are you that poor? Yeah.

Yeah. He's like, I want to keep it chill this year. Yeah. Now, Peshavar keeps building his perfect company. He nabs former White House staffer, Jim Messina, for his board of directors. Messina also happens to be an outside partner at Sherpa, Peshavar's investment firm. Since he can't get Musk on board to be the chief technology officer, Peshavar recruits the next best thing, co-founder of SpaceX, Brogan Bam Brogan. What are these names? What are these names?

That's like a name that would be in Futurama or something like that. I don't know if you guys read that article that was about the libertarians who can't stop having kids. It's this one couple and all of their kids are named like duty, obedience. Imagine your name is duty. It's not looking good for you. Bam Brogan's name was originally Kevin Brogan, but when he married his wife, Bambi Lu, they decided to mash their names together to make a new last name. And he took his old last name as his new first name. And she kept her first name name so she's Bambi Bam Brogan. Bambi Bam Brogan?

Yeah. And he's Brogan Bam Brogan? Yes. Also, they didn't match their last names together if he gets to keep his full one and hers is halved. You know, it's not the sentiment that I'm against, it's the result. You know? So the crew, along with a gaggle of engineers, start scheming in Bam Brogan's garage in LA. Don't worry, it's a very fancy garage in Los Feliz.

But they do quickly outgrow it. They move to a former ice factory in downtown LA's art district next to a topless bar. Pretty cool. Their first big opportunity comes in a 2014 meeting with then Senate Majority Leader Harry Reid. Reid represents Nevada, so his blessing is key if they're going to connect Los Angeles and Las Vegas. In 2014, there are no direct trains from LA to Vegas.

You can take a bus or a shuttle. Most people drive. The truly impatient partiers take a plane or helicopter if they're bougie. So the hype team thinks they have a great shot with Reed. But first, they have to explain the idea of Burning Man to him because Reed notices a lock screen photo on Bam Brogan's iPad with a bunch of strung out hipsters in the desert and

needs to know what's happening there. How would you explain Burning Man? To a senator. I know how I would explain Burning Man to a senator, and I heard that it was late night rules on this show, so I'm going to abstain. So after all that, they wow Reed with a presentation about the Hyperloop's visionary possibilities and convince him to help Hyperloop get a hold of land in the Nevada desert where they can build a test track. Not everyone is hyped on the loop, unfortunately. Critics promptly weigh in. Now, most of Musk's detractors point out that Hyperloop would be a solution to a problem that doesn't exist. Like the alpha paper mentions,

we already have trains, cars, boats, and airplanes, and buggies, and all the things that we noted earlier. We don't need a super expensive fifth mode of transportation with a huge risk of catastrophic failure because it puts passengers in what is very close to a vacuum. And I don't mean a Hoover. Do you know what happens to humans in a vacuum? I mean, it has to be total combustion, like explosion, right? I keep thinking of those. Have you guys ever seen those pictures of the dogs in the wind tunnels? Oh, yes. Yes. Their faces are like nightmares. Yeah.

Yeah. Well, your blood boils. Actually all of the fluids in your body boil. It's like when scuba divers get the bends, the pressure change causes tiny gas bubbles to form in your arteries. So studies have shown that animals and humans in vacuums lose consciousness within 10 seconds. They lose bladder and bowel

control, their muscles swell, the hearts and brains are cut off from blood flow, and they die in under 5 minutes. Psych, it's under 2 minutes! Wow! Oh my gosh! But does it help if there's a fake landscape? Yeah! Yeah. Does it help if there's a hibachi chef putting shrimp tails in his hat and cracking an egg to look like a heart?

But let's just say there isn't a catastrophic failure and the pods stay securely in the tubes as intended. You still have to deal with the queasiness that comes with rapid acceleration and deceleration, aka G-force. So when you're already traveling fast, like on a plane mid-flight, you're fine. It's only when the plane takes off or touches down that you really need the barf bag ready. When Top Gun came out, you know, I went on like a bender of watching all of the actors, like the YouTube videos of them being like, yeah, we had to go through G-Force tests. And it's like, and they would barf or like shit themselves or immediately pass out. And it's just

crazy. It's literally like only trained humans can handle this level of g-force without passing out. And they usually are wearing like special suits that like prevent them from passing out and having strokes. It's not just like a little problem. It's a big problem. So now imagine going through that every time you just want to like dash off to Vegas for like a quick poker tournament. You're like, sorry, Brogan can't make the tournament. His blood boiled. Not again. Can't handle barfing and blood boiling. Like, I don't know what to tell you, sweetie.

Yeah. So we're all buying tickets, right? Perhaps it should be telling that instead of pursuing the Hyperloop idea, Musk starts his very own, unexciting company called The Boring Company to work on tunneling. And these tunnels aren't even for Hyperloop. How boring. At first, The Boring Company mostly just sells $500 branded flamethrowers and a perfume called Burnt Hair. This, like, you can't make this stuff up people. You really cannot. Now, despite Musk's disinterest, the Hyperloop idea is obviously appealing to innovation obsessed tech reporters and entrepreneurs.

And Forbes even puts Pichavar on the cover of their 2015 March issue. By 2016, the hype team has raised more than $160 million. They've changed their name to Hyperloop One, and they're ready for their first test. Their propulsion test in Nevada doesn't involve a tube, but they demonstrate that, at the very least, they've made a fast thing. Their test sled accelerates from 0 to 116 miles per hour in 1.1 seconds before crashing into a pile of sand. That's nothing if not a great metaphor for what's about to happen to their company.

No one's in it, right? No. Okay, okay. Publicly, Pichavar claims they'll have a full-scale Hyperloop by March of 2017. Sometimes he says 2020, but whatever. And I'm sorry, we're still in 2014? 2016. Oh, we're in 2016 now.

Yeah, he's like, in one year, we're going to have going from little sled, not in a vacuum, to a full thing. Wow. Yeah. Optimistic. But behind the scenes, the hype team has to abandon the LA to San Francisco connection pretty early on. They can't get closer than an hour outside each city due to rights of way issues,

you know, all those pesky existing buildings and pipes and wires and stuff. Geez. Can either of you guess why they didn't think of that before? Because they're always on yachts and helicopters. Yeah, I was like, is there not living amongst us? Yeah. I mean, you're kind of right. Musk's Alpha paper claimed they wouldn't need land rights because they could suspend the loops on pylons, avoiding the need to buy land. Basically, we'll just go over everything. Okay, but to build a pylon, you need to be on land, correct?

Correct. Also, when I'm thinking of drilling and building a tunnel, it's like if he's using a reference to a pipeline, famously, you are digging on land to build. Kind of how it works. Who knows? Yeah, I do feel like it is an argument for why there should be no billionaires because these are their ideas. This is what they come up with. So Pichavar assumed his CTO Bam Brogan would play ball, but he's actually not very keen on how Pichavar runs his operation.

For starters, Bam Brogan finds all the nepotism at Hyperloop icky because Peshavar runs his operation. For starters, Bambrogan finds all the nepotism at Hyperloop icky, because Peshavar has hired his brother, Afshin, to be the chief legal officer. Additionally, another board member has forced the company to hire his younger brother's investment firm, and Bambrogan thinks that's unfair and counterproductive. So he starts openly complaining about P. Shavar and the board wasting company money on enhancing their own personal brands. And he accuses them of padding their bank accounts, which they deny, while they have yet to put serious money toward developing the actual technology, which a competitor prices out at $45.3 million per mile.

Whoa. Bambrogan, he continues being outspoken about what he perceives as corruption at Hyperloop One. Dun, dun, dun. And one day, he goes too far. After running his mouth to a couple of Russian investors, Bambroughan finds a noose left on his office chair. What the hell?

Classic. Tail as old as time, you know? Tail as old as time. So, no, the investors don't leave it there. Allegedly, it's Peshavar's brother, Afshin, but nobody admits to doing this or faces any criminal charges for this.

Wow. Have you ever encountered any ridiculous HR violations like that? Not a noose. You're like, not a noose. I've gotten a subpar secret Santa gift. Yeah. So Peshavar then fires Bambrogan, who turns around and sues, not only for wrongful termination, but for the threats to his life that were given. Pichavar sues him right back, and he

calls the original lawsuit unfortunate and delusional, accusing Bambrogan of trying to stage a coup. So, both suits are eventually eventually settled with nobody admitting any wrongdoing, of course. But the damage is done. Van Broeghen starts his own Hyperloop company called Arrivo and takes a bunch of Hyperloop slash SpaceX employees with him. Okay, I thought you were going to say pens. I know. He scoops up a bunch of merch, sells it on Grilled, and then opens up his dream coffee shop. After the fallout with the Burning Man Bambrogan, P. Chavar now needs some good PR for Hyperloop

1 to raise money. Again, they've already raised $160 million, which seems like a lot, but how much do you think it would cost to build a Hyperloop between LA and San Francisco? I was gonna say like hundreds of millions minimum. Yeah. Yeah, I was gonna say that as well. Okay, well hold on to your headphones.

It's $100 billion. Oh. Just between LA and SF? Yes. How many people want to go between LA and SF so fast, so bad? It's like, who is this for? Yeah. So not only does Peshavar need the money, he also needs government backing because he

needs some cities willing to be guinea pigs. Now luckily, since local governments think big tech is going to save them, how about a bidding war? A bunch of municipalities worldwide submit thought-out proposals for what they think will be a transportation transformation. Instead, they discover the winners get nothing more than the privilege of conducting viability studies alongside Hyperloop 1. And also, demonstrations like this. Let's watch a clip of Pishavar in the Hyperloop lab. This is really cool.

So he's going to demonstrate the levitation. This is how we actually levitate the pod. So we have a bunch of magnets that sit underneath the vehicle. And then you'll see it begin to float once it gets on. So when you have no friction and you're levitating, you're going to be able to move things extremely fast. What? Say what?

I also love that little legend just walking around with his little mug. Little mug. He's like, I'm walking on my tea. So was the part that was impressive just there that he lifted off the ground? That it lifted that half an inch off of the little wooden slats? Yeah, apparently. It reminds me of when you're little and you have magnets and you make them resist each other. That's how cool that was. Yes. Yes.

And I love that it got this high off the ground, an inch off the ground, and then we're supposed to put people in something like that. Yeah. By 2017, no tests have been done with living passengers, although they have built that snazzy test track in Nevada thanks to Senator Reid. Peshavar's goal is to eventually reach 760 miles per hour. How fast do you think this test is able to go? I want it to go like 98 miles an hour. I want it to be like you're in someone's car

and they're driving crazy. Like I've accidentally hit like a speed like that. You know, when you're like driving your car and all of a sudden you're like, I am making amazing time. And you're like, oh my God. Yeah, I'm gonna get arrested. Yeah, yeah.

Cause I feel like it can't be too crazy cause they haven't figured out all the health stuff yet. Well, it reaches 70 miles per hour in five seconds. Oh my God. That is so lame. So basically everyone on the LA freeway would be passing you. Oh, yeah. I live in Texas. We literally have speed limits of 85. Right?

Yeah. Right? You know? Yeah. Well, those annoying critics start to suggest that scientifically speaking, Hyperloop might not be possible. In November, just as Hyperloop 1 seems to have moved past the Bambroughan drama and is ready to send people through a shaky tube, Pichavar faces some personal turbulence. Multiple women come forward and accuse him

of sexual misconduct. Can you imagine? Not my guy Peshavar. No. One accuser is Uber's head of global expansion, Austin Geet, who claims Peshavar tried to feel her up at a holiday party. Oh, jeez. Not at the holiday party. Fun fact, Peshavar brings a pony to this party. What? Bonus fact, it's wearing a Santa hat. Thank God. I was going to say, it doesn't count if it's not in a costume.

Unfun fact, a defender of Peshavar actually said that it would be impossible for Peshavar to touch Geet since, you know, he was holding a drink in one hand and the pony's leash in the other. Oh my God. We are, I do wanna say we are living in hell. I do believe that this is real and I do believe we are in purgatory.

So, yeah. There is that. He doesn't seem like a super angel at all. Not a super angel in the slightest. So backed into a corner, P. Chavar announces he'll be taking a leave of absence from Hyperloop One and resigning from Sherpa Capital. But he vehemently denies all the allegations, swearing to sue the people who orchestrated the smear campaign against him. He's not charged or convicted.

For Hyperloop to continue, it needs somebody willing to snatch up the impossible business plan. Enter Richard Branson, former owner of Virgin Records, current owner of Virgin Atlantic, and future owner of Virgin Breathable Oxygen, the company that sells you air to breathe. Branson rebrands Hyperloop One to be Virgin Hyperloop One because of course he does. Branson juices $50 million out of two previous investors, then raises another $172 million, more than half of which comes from a Dubai port operator who's more interested in carting cargo than human beings, which is a better idea. Much better idea.

Yeah, I actually support that. I think that person actually is onto something there. Same. Yeah, I actually support that. I think that person actually is on to something there. Yeah. The problem is cargo isn't sexy and Branson's all about the sexy. In Dubai, Branson unveils the design of Virgin Hyperloop's potential passenger capsules, tiny little mod pods. Let's take a look at a photo. Oh, it looks like the Virgin Airplanes. Yeah, it's right on brand, isn't it? Yeah. He's like, let's just take an old cabin and just retrofit it.

Now don't worry, these hypothetical windowless tubes would be fitted with fake skylights to make you feel less like you're in a multi-person coffin. So, a little upgrade for ya. Branson only chairs the company for a year and then he gets bored. Hyperloop is cool and all, but honestly, he'd rather go to space. Yes. And in 2018, he hires an experienced transportation CEO named J. Walder to replace himself while he focuses on Virgin Galactic.

Now, here is Walder trying to keep a straight face while a reporter asks him if a CGI rendering of a non-existent Hyperloop pod would be as comfortable as it looks. Let's watch. At one point in the video, there's a coffee that's barely moving and the speed above it was above 500 miles per hour. Talk to us about just the experience of being in there and what it will feel like, because this is critical. It's as critical as cost and accessibility, I think,

for those who might use this. You're literally floating on a bed of air, and it will be super smooth. We are able to achieve these speeds in a way that we've never seen before. The tube is completely serene in the way that it is. So if we think about air travel and turbulence, we don't have any of that that is taking place here right now. What? that is taking place here right now. What? You know what struck me about the ending of that video was watching these CGI people look

like they're in a fighter jet, like strapped down with these huge harness like seat belts. Also, the last thing I want to be doing traveling at 670 miles per hour, which is I think the speed it showed on the little screen, is drinking a piping hot tea. Oh my gosh. That's so true. Greta's like, no, shoot Saki into my mouth. Yeah, truly I am. Cold Saki.

Yeah, cold Saki. Well, while Branson's head is in the clouds, Walder tries his best to stay grounded and make Hyperloop a reality. In 2020, after hundreds of unmanned tests and at least $450 million dollars down the tube hole, Virgin Hyperloop conducts its first ever test with human passengers. Virgin Hyperloop's CTO, a man named Josh Geigel, and his wishfully titled Director of Passenger Experience, Sarah Luchian, strap themselves into a bullet train-shaped pod. This is it. This will make or break Hyperloop. From this point on, humanity might be altered forever. Off they go. You guys, they travel 760 miles per hour,

enter a new dimension where they meet God. And that is why today we have Star Trek in real life. Just kidding. They go about 100 miles per hour for 20 seconds and travel a fourth of a mile. Oh God. Wow. What a ride. What a ride you took us on. What happened when they were going that fast in such a short window of time? Nothing.

We already have modes of transportation that go much faster than this. 100 miles per hour. We do it in cars. Yeah, I'm hitting 100 going to Gelsen's, honey. Yeah. A Bugatti can go 300 miles per hour. There's the Japanese bullet train, which already exists, that can go 200 miles per hour without the need of blood boiling vacuum tubes.

So this was truly a flop. Yes. Yes. An expensive flop. Yeah. Very expensive. Yeah. Well, the same year, Branson actually reaches the edge of space. And what does that have to do with Hyperloop? Nothing, except that his pet project doesn't seem to be delivering results.

Hyperloop's CEO, Jay Walder, resigns out of frustration. Josh Geigel takes over as CEO, but only for a mere eight months. And these departures trigger a massive talent flight and low morale among the remaining 200 employees. Morale that certainly isn't helped when Branson fires half of them just a couple of months later. He also strips Virgin from its name and announces that they are indeed pivoting to cargo transportation after all. Wow. So guess, or should I say, what do you think they blame Hyperloop's failure on? I think they blame it on our guy, on our naughty, terrible man.

Yeah. No, they go with what everybody blamed everything on for the last few years, global supply chains thanks to COVID. That's why this didn chains thanks to COVID. Oh, sure. That's why this didn't work. Sure, sure, sure. But in reality, investors had started bulking at the high cost of developing the faux futuristic transport already. The fact that Branson hadn't been able to secure any real contracts to build a single Hyperloop system didn't help any. And in December of 2023, Branson closes the Hyperloop company. He transfers all of its intellectual property to the Dubai poor operator slash mega investor, leaving Musk's boring project

as the last vestige of Peshavar's original dream. Let's do a little Where Are They Now? As of today, Musk's Boring Company hasn't done much more than produce one tunnel in Vegas that acts as a glorified conference shuttle system, which, I might add, faces piles of fines from OSHA for a bunch of alleged safety violations. Now, The Boring Company is actively contesting all of these claims, so we'll see where that one ends up I guess. Ironically, one of the best chances Musk's tunnel has of becoming a useful network is if it can expand to another hotel in Las Vegas, the Virgin Hotel.

Oh my gosh. By the way, Richard Branson's newest venture is a luxury super yacht cruise line featuring No Kids, Korean barbecue, yoga at sea, and the happiest crew in the world. Wow. Looks all right, honestly. Virgin Cruises looks cool. I love ensuring happiness. I love ensuring like we have sourced the happiest people planet Earth has to offer. It's like, okay. Yeah. Shervin Peshavar is all in on crypto and once a big Democratic Party contributor is now

on the Trump JD Vance ticket. No surprises there. Oh good. Hyperloop competitor Arrivo went out of business in 2018 after only one year. So Brogan Bam Brogan is now working for Ethos Space, a company that is working on making round trips to the moon more affordable by mining moon rocks for liquid oxygen.

And that honestly, I thought of that actually. That's true. You've mentioned that around town. Yeah, I was kind of shopping the idea and people were like, you know, yeah, there's something there. So that's a bummer. Yeah. So here on the Big Flop, we try to be positive people and kind of end on a high. So are there any silver linings that you can think of that came from Hyperloop? You know, silver lining, no one died in a vacuum.

Nobody died with their blood boiling. There you go. Yes. Yep. I think that boiling. There you go. Yes. Yep. I think that pretty much sums it up. I think that's a huge win. Yeah, I think because they weren't really inching toward it and like two people did volunteer to potentially die that way. For me, it was heading towards the, what was that underwater submersible direction where

I was like, uh-oh. Well, now that you both know about these Hyperloop one billionaires spending a bunch of money on what turns out to be nothing, would you consider this a baby flop, a big flop or a mega flop? Unfortunately, I really feel like the billionaires are out here flopping every single day. I feel like to us, I'm like, well, that's a mega flop because it's so embarrassing on so many levels and it's also so expensive and the amount of money is just staggering and upsetting. But I feel like in their sicko minds, they're just like, oh yeah, I tried this like awesome

thing I thought about and didn't work. But you know, like I'm just too, I'm just too forward thinking. You know what I mean? Yeah. Like for them, it's probably a baby flock. Yeah. Yeah. Like another year, another tube pet project.

Well thank you so much to our quick witted guest,, Aparna Nancherla and Greta Tittleman for joining us here on The Big Flop. And of course, thanks to all of you for listening. Please remember if you're enjoying the show to leave us a rating and review. We'll be back next week with the story of a woman whose lies came crashing down with one fatal question. Your parents, are they white? It's Rachel Dolezal. Bye. Oh, bye.

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