A legislative firestorm is erupting in Tennessee, where State Senate Majority Leader Jack Johnson made a substantial personal investment in Tesla (NASDAQ: TSLA) while overseeing a bill that directly impacts the underground tunnel that is being built in Nashville by the Boring Company – Elon Musk’s infrastructure firm.
The controversy, first detailed in an investigation by media outlet Nashville Scene, has ignited a fierce debate over potential conflicts of interest and the erosion of local control as Tennessee moves to fast-track subterranean transportation.
Tennessee Senator Buys $10,000 TSLA Shares
Financial disclosures indicate that the Williamson County Republican purchased 50 shares of Tesla Inc. in April 2025 – an investment valued at more than $10,000 at the time. However, the timing of the purchase has drawn intense scrutiny, as it occurred just three months before Tennessee Governor Bill Lee’s administration officially announced a partnership with The Boring Company in July.
The Music City Loop is a planned underground transit system in Nashville that connects downtown Nashville and the Nashville International Airport (BNA) with high-speed, zero-emission travel through tunnels. The tunnel is expected to shuttle passengers in dedicated Tesla vehicles from BNA to downtown and Lower Broadway in roughly 8-10 minutes. The initial network will be 10-13 miles long and is being built under state-owned roadways. The project is entirely privately funded, with The Boring Company covering its construction and operation.
Since that announcement, TSLA has seen its price surge roughly 54%, generating substantial unrealized gains for Sen. Johnson, the state senate’s second-most powerful member. Since the transit project exclusively uses Tesla models X, Y, and eventually Robotaxis and Robovans to ferry people, its financial success is directly linked to the performance of the company’s stock.
Both companies are deeply intertwined via critical operations, as The Boring Company’s underground roadways rely on Tesla vehicles, while Tesla CEO Elon Musk is the controlling owner of The Boring Company and primary shareholder of Tesla.
Sen. Johnson Supports Bill
When the media confronted him with the findings, Senator Johnson maintained he had no insider knowledge of the tunnel deal before the Governor’s July announcement, and as of March 3, he has sold all his shares in the company.
While holding the stock, Johnson, who could become the Senate’s presiding officer next session, is also sponsoring the “Subterranean Transportation Infrastructure Coordination Act” (SB-2205) – a key legislation related to The Boring Company currently in the Senate. The bill seeks to establish the “Subterranean Transportation Infrastructure Coordination Authority” with an 11-member board and 20-person staff, and $5 million in state taxpayer funding to issue permits and provide all regulations for underground projects, including the Music City Loop.
Johnson said the authority is necessary to recognize the potential for the Music City Loop to cross county and city lines.
The Senator amended his financial disclosure in January 2026 to specifically include Tesla, along with three other market index funds that are held by him or his spouse. He also holds a direct investment in Copart, a Dallas-based vehicle dealer with five registered lobbyists at the Tennessee General Assembly.
However, local leaders are sounding the alarm. Democrat Senator Charlane Oliver and Councilmember Delishia Porterfield have sponsored resolutions opposing the project, citing a lack of transparency and Musk’s history of regulatory friction. Critics often point to The Boring Company’s track record in Nevada, where it faced more than $200,000 in fines for repeated safety and environmental violations during the construction of the Las Vegas Loop.
The Music City Loop hinges on a long-term lease of state-owned property officially granted by the Tennessee Department of Transportation and the Federal Highway Administration on February 26. In December, the Boring Company proposed an additional branch of the tunnel along West End Avenue and near Interstate 440, aiming for at least 20 stations across the broader Nashville area by around 2027. The project is now under construction, with the first legs expected to become operational as early as late 2026, subject to approvals and testing.
Tesla, Inc. (TSLA) closed Tuesday’s trading session at $392.43 – down 2.70% on the day.
