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Elon Musk, the billionaire founder of Tesla, has promised to offer rides for just $1 on his proposed underground 'Loop' tunnel system which will weave across Los Angeles.

Musk, who is best known for making electric cars and space rockets, launched the Boring Company in 2016 to explore the possibility of creating the underground tunnel system.

And at a panel discussion in the American city last night, Musk gave a few more insights into what the company was hoping to achieve with the project.

Read more: Elon Musk's SpaceX successfully launches Falcon 9 rocket into space

Musk reiterated the company vision of having miniature “pods” that would transport up to 16 people across the underground system for just $1 per passenger.

The charismatic entrepreneur said he hoped the new public transport system would help resolve the citys chaotic traffic.

"It's one [solution] we think could work and is worth trying," he said.

Musk also imagined that the citys roads could become parks or gardens, and said the tunnels could be "almost like an autonomous, underground multi-level car system."

Read more: Tesla boss Musk defends dodging analyst's "bonehead" questions

The Boring Company plans to excavate a 2.7-mile (4.4-km) passage below a stretch of the congested Sepulveda Boulevard corridor on the West Side of Los Angeles.

The City Council approved Borings request to exempt the tunnel from a lengthy environmental impact review, however, the companys plans have hit a recent snag after a court challenge from two neighbourhood organisations to halt development.

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