The news was announced during a community meeting for The Boring Company last night which, funnily enough, Musk was late to due to the city's traffic, which he called "the seventh or eighth level" of hell.
The billionaire revealed footage of his Boring Company's exploratory excavation, which will be open to the public and offering free rides within months.
Musk launched his foray into public transit after complaining about traffic on Twitter in late 2016, vowing to "build a boring machine and just start digging".
The Boring Company presented plans to build a 6.5-mile (10.5 km) shaft under Culver City, California, at a council meeting.
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"If you build a tunnel in L.A., you can build one anywhere", Musk said, referring to the various challenges the test tunnel would need to overcome in the city, including seismic conditions, methane gas, oil fields, and regulations.
'The tunnel would contain a high-speed underground public transportation system in which passengers are transported on autonomous electric skates travelling at 125 to 150mph (200 to 240 kph)'.
Mr Musk, the Silicon Valley tycoon who founded Tesla, the electric vehicle company, said he would offer free trips through the first two research tunnels he completes to get public feedback before proceeding with a larger system.
Musk welcomes all to get into a more urban experience in commuting throughout LA, which he envisions would be of 150mph trips, and only for that one dollar!
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Test runs in the loop have already hit a couple of hundred miles an hour, and Musk's plan is for vacuum Hyperloop tubes between cities that enable travel in pressurized carts at up to 300 MPH.
Earlier in the evening Musk had retweeted the LA Metro tweet where it was mentioned that it was partnering with The Boring Company on a test. Pods would use on-ramps and off-ramps rather than running like a subway line.
"I like the fact that brilliant guys are driving around Los Angeles trying to figure out how to make things better", said John Given, a lawyer representing the groups, referring to Musk's gridlock-inspired idea for tunnels.
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To get moving towards this "Loop" vision, the company will begin with a 2.7 mile test tunnel on private property with private funds.