The company says it'll instead focus on Dugout Loop, a proposed tunnel that would connect to Dodger Stadium.
Elon Musk's ambitious LA tunnel plan is changing course.
The Boring Company said on Tuesday that it would drop plans to dig a tunnel near the Los Angeles International Airport, beneath the 405 freeway and Sepulveda Boulevard, according to NBC News.
The halt was reportedly part of a settlement the company made with community groups that had sued the city for exempting the project from environmental review requirements.
"The Boring Company is no longer seeking the development of the Sepulveda test tunnel and instead seeks to construct an operational tunnel at Dodger Stadium," the company told NBC.
The company didn't immediately respond to a request for comment.
In April, the Boring Company pitched an underground transport system plan dubbed Dugout Loop that would let people get to Dodger Stadium from the Red Line of LA's Metro Rail, which serves surrounding neighborhoods.
Musk said earlier this month that a test loop under SpaceX headquarters in Hawthorne, California, was on track to open in December. Musk has promised free public rides in the loop on Dec. 11.
The loop concept features a large "skate" carrying a vehicle under Los Angeles traffic at speeds of up to 155 mph. The Boring Company has a contract to build a loop to O'Hare International Airport in Chicago.