Quay Valley, California
In March 2015, Dirk Ahlborn, the CEO of Hyperloop Transportation Technologies (HTT) in El Segundo, California announced a plan to build a hyperloop test system at the Quay Valley site. Ahlborn indicated that construction could begin in 2016 to be completed in 2017 with the first rides to begin in 2018 if his company can raise $100 million in funding. The company has said that this track will be a fully working and operational creation of the hyperloop, but that running speed will be reduced on the shortened track from Hyperloop's full potential. It is not decided whether a 5-mile loop or straight section will be constructed, and it may cross the Interstate bisecting the site. Ahlborn said that speeds up to may be possible. Quay Hays expects to break ground on the new community in 2016, including a working version of the Hyperloop, estimated to cost $100–150 million.
Hyperloop
The alpha proposal projected that cost savings compared with conventional rail would come from a combination of several factors. The small profile and elevated nature of the alpha route would enable Hyperloop to be constructed primarily in the median of Interstate 5. However, whether this would be truly feasible is a matter of debate. The low profile would reduce tunnel boring requirements and the light weight of the capsules is projected to reduce construction costs over conventional passenger rail. It was asserted that there would be less right-of-way opposition and environmental impact as well due to its small, sealed, elevated profile versus that of a rail easement; however, other commentators contend that a smaller footprint does not guarantee less opposition. In criticizing this assumption, mass transportation writer Alon Levy said, "In reality, an all-elevated system (which is what Musk proposes with the Hyperloop) is a bug rather than a feature. Central Valley land is cheap; pylons are expensive, as can be readily seen by the costs of elevated highways and trains all over the world". Michael Anderson, a professor of agricultural and resource economics at UC Berkeley, predicted that costs would amount to around .