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Boxabl

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Boxabl Inc.
Company typePrivate
IndustryHousing
Founded2017
Founders
  • Paolo Tiramani
  • Galiano Tiramani
  • Kyle Denman
Headquarters
Las Vegas, Nevada
Key people
  • Paolo Tiramani (CEO)
  • Galiano Tiramani
  • Kyle Denman
ProductsCompact and modular homes
Websiteboxabl.com
Boxabl Casita unfolding when delivered.
Boxabl Casita unfolding setup when delivered.

Boxabl Inc.[1] is an American housing construction technology company located in Las Vegas, Nevada. It aims to supply accessory dwelling units (ADUs).[2][3]

History

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Boxabl was founded in 2017 by Paolo Tiramani, an industrial designer and mechanical engineer who holds over 150 patents, alongside his son Galiano Tiramani and mechanical engineer Kyle Denman.[4][5][6] The company was self-started with $2 million provided by the co-founders, and has since raised over $150 million in crowdfunding across several financing rounds.[7][8][9]

In September 2020, the company received its first order: a federal contract for more than $9 million to build and deliver 156 "Casitas" for Camp Justice, the Guantanamo military commission, intended to house lawyers and juries for detainee trials. However, the units were prone to leaking and molding.[10][11][12][13][14] Additionally, the company exhibited at the International Builders' Show held in Las Vegas in January 2020.[15] In May 2021, CBS News reported on Boxabl's appearance at that year's TinyFest California small home show.[16]

Hamid Firooznia served on Boxabl's three-member board from June 2020 until sometime after January 10, 2023. He had been actively involved with the Iranian shell companies that have illegally owned 650 Fifth Avenue since at least 2017. Galiano Tiramani has said "This is just a guy that, you know, we have a lot of respect for, who is giving solid advice."[17][10]

Boxabl hinted that Elon Musk had bought a Boxabl unit in 2020. Musk confirmed that he has a Boxabl house in September 2021.[18][3][19][20][21] Boxabl stated they delivered one unit to Texas as a demonstration, with no revenue recorded.[22] Musks Boxabl was shipped to Musk's Spacex facility in Texas as a marketing tool.

In May 2022, the company announced a partnership agreement with homebuilder DR Horton, which entailed an investment and resource sharing, including a phase 1 order of 100 Casita homes.[23][24]

In 2022, the company opened its second factory building, though as of early 2023, it remained unequipped for production.[17][25]

Later that year, the Pronghorn Group purchased 176 Casitas to use as workforce housing for the Bagdad copper mine in Bagdad, Arizona.[17] However, 48 were installed before it was determined they violated Arizona Department of Housing laws and codes, including lack of permits, and the rest of the order was suspended when Boxabl settled with the state in April 2023. The company is assessing whether the units can be reconstructed to meet requirements. Each unit's total cost exceeded $100,000, including the foundation and utilities, leaving Pronghorn Group skeptical about their actual cost advantage.[9][22]

Boxabl's auditor resigned in May 2024.[26] In June 2024, the SEC charged an Investor Relations executive with fraud for raising $1.6 million in Boxabl investments and diverted the funds for his own spending.[27][28]

Controversy

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On March 3, 2023, Business Insider published an article titled "Tiny Homes, Big Problems," outlining various governance, production, and budgeting issues within the firm. This article identified serious defects in spending management, such as significantly above-market salaries for executives. Business Insider's investigation, a lawsuit by a former high-ranking executive, and the company's financial disclosures also revealed that Boxabl spent $15.7 million to build an order for which it received $7.8 million, calling into question Boxabl's claims of producing low-cost housing at scale.[29] As Boxabl raised and spent tens of millions of dollars, Business Insider alleged that an employee named Caroline Larkin, who is romantically involved with the elder Tiramani and is a registered nurse with no accounting or bookkeeping experience, managed day-to-day disbursements from the company's accounts.[29]

Products

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Boxabl CEO, Paolo Tiramani w HUD Sec. Ben Carson.

Boxabl provides pre-fabricated homes with walls, a floor, and a roof that fold into each other to form a self-contained transportable unit.[2] The company's main model, the Casita, is a 361 square foot base unit. [14][29][30] According to their website, these homes are designed to be unpacked and assembled in less than an hour.[2][31] Manufactured in an assembly line similar to automobile assembly lines,[12] the houses are constructed with materials including steel, ceramic boards, and expanded polystyrene foam.[7][12]

Various models are designed to be stacked and configured into a variety of configurations.[14] The company reported that it could produce a new home every 90 minutes, though in a year, the company built under 400 homes.[17][32] By early 2023 there were 160,000 entries on the Casita waitlist with $5.4 million in deposits, though $1 million in deposits had been refunded.[17][33]

At the 2023 International Builders Conference, Boxabl showcased a new two-story prototype containing three bedrooms, two-and-a-half baths, and an outdoor patio.[34][35]

Operations

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Boxabl is headquartered in Las Vegas, Nevada, and has a factory in North Las Vegas.[12][36] Paolo Tiramani is the company's Chief Executive Officer.[12]

References

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  1. ^ "8-K: Current report". sec.gov. October 18, 2024. Retrieved November 7, 2024.
  2. ^ a b c Quinones, Todd (May 14, 2021). "North Las Vegas company creating affordable housing in a box". KTNV. Retrieved August 17, 2022.
  3. ^ a b Chang, Brittany; Levin, Tim (August 8, 2021). "Elon Musk reportedly lives in a $50,000 prefab tiny home that already has a 100,000-unit wait list — see inside a unit". Business Insider. Retrieved August 17, 2022.
  4. ^ "Homes of Mass Production: Q+A with Boxabl's Galiano Tiramani". builderonline.com. September 1, 2022. Retrieved September 23, 2022.
  5. ^ "Modular Manufacturer, Boxabl, uses Saniflo Rear Discharge Toilets for plumbing". saniflo.com. Retrieved September 23, 2022.
  6. ^ Meisenzahl, Mary. "These shipping containers unfold into $50,000 tiny homes that can be stacked into custom buildings — here's how they work". Business Insider. Retrieved September 23, 2022.
  7. ^ a b Admin (May 19, 2021). "A Tiny Home in a Backyard? Boxabl Says Yes. But It Depends on Where You Live". Inter-tech-ion. Retrieved August 17, 2022.
  8. ^ "OFFERING CIRCULAR BOXABL INC". sec.gov. September 14, 2022. Retrieved October 5, 2022.
  9. ^ a b Daniel Geiger; Alex Nicoll (September 13, 2023). "The SEC is asking questions about Boxabl, the tiny-home startup that boasts Elon Musk and Post Malone as fans". Business Insider. Retrieved September 14, 2023.
  10. ^ a b "OFFERING CIRCULAR DATED APRIL 1, 2022 BOXABL INC". sec.gov. April 1, 2022. Retrieved September 16, 2022.
  11. ^ Carol Rosenberg (September 16, 2022). "At Millions Per Detainee, Guantánamo Prison Stuck in a Cycle of Costly Delays". The New York Times. Retrieved September 16, 2022.
  12. ^ a b c d e Hudson, Subrina (September 19, 2021). "North Las Vegas company aims to deliver affordable modular homes". Las Vegas Review-Journal. Retrieved August 17, 2022.
  13. ^ Orrall, Jesse (July 24, 2021). "Boxabl aims to build foldable homes that cut costs, go up fast". CNET. Retrieved August 17, 2022.
  14. ^ a b c Newsource, C. N. N. (January 4, 2022). "North Las Vegas-based Boxabl racks up 70K-person waitlist for tiny homes amid housing crisis". KESQ. Retrieved August 17, 2022.
  15. ^ "Tiny, modular homes introduced at International Builders' Show". calgarysun. Retrieved October 5, 2022.
  16. ^ "Learn more about tiny homes at TinyFest California". CBS News. May 14, 2021.
  17. ^ a b c d e Daniel Geiger; Alex Nicoll (February 6, 2023). "A tiny-home startup has attracted 160,000 customers, including Elon Musk. But disgruntled customers, an empty factory, and a tie to an alleged Iranian agent cloud its future". Business Insider. Retrieved February 8, 2023.
  18. ^ https://x.com/elonmusk/status/1459586633230168068
  19. ^ Rosen, Larry (July 14, 2021). "Is the future a home that unfolds?". The San Francisco Examiner. Retrieved August 17, 2022.
  20. ^ Jain, Sanya (November 15, 2021). "No, Elon Musk Does Not Live In A Boxabl Tiny Home. Here's What He Tweeted". NDTV.com. Retrieved August 17, 2022.
  21. ^ Chang, Brittany; Levin, Tim (August 5, 2022). "Yes, Elon Musk Owns a Boxabl, Here's Everything You Need To Know". Business Insider. Retrieved September 7, 2022.
  22. ^ a b "Boxabl Form 10, 2022 filing". sec.gov. August 10, 2023. Retrieved September 14, 2023.
  23. ^ "D.R. Horton invests in Boxabl, agrees to first phase 100-unit order". Seeking Alpha. May 24, 2022. Retrieved August 18, 2022.
  24. ^ Jackson, Margaret (October 13, 2022). "Box It Up — This Company's Technology Is Aimed At Making Housing Affordable". Yahoo Finance. Retrieved November 4, 2022.
  25. ^ "Startup that created Elon Musk's foldable house opens a new factory". Freethink. August 11, 2022. Retrieved October 5, 2022.
  26. ^ Michaels, Dave (June 10, 2024). "The Shortcut That Allows Risky Startups to Raise Billions From Rookie Investors". WSJ. Retrieved June 11, 2024. The SEC is investigating the company over its disclosures to investors. Its auditor resigned last month after identifying a material weakness in Boxabl's systems for valuing stock-based compensation and accurately disclosing financial information to investors. Boxabl said it believes the auditor's concerns were resolved.
  27. ^ JD Alois (June 18, 2024). "Former Boxabl Investor Relations Executive Charged With Fraud | Crowdfund Insider". Crowdfund Insider. Retrieved June 19, 2024.
  28. ^ "SEC Charges Former Investor Relations Employee Over Fraudulent Investment Offerings". sec.gov. June 18, 2024. Retrieved June 19, 2024.
  29. ^ a b c Alex Nicoll; Daniel Geiger. "Tiny homes, big problems". Business Insider. Retrieved April 17, 2024.
  30. ^ "BOXABL - Accessory Dwelling Unit". Boxabl. Retrieved April 2, 2024.
  31. ^ "These New $49K Prefabs Can Snap Together Like LEGO Bricks". Decor Report. Retrieved August 17, 2022.
  32. ^ "$50K for a foldable tiny house? The Boxabl dream explained". CNET. July 24, 2021. Retrieved August 17, 2022.
  33. ^ Naysmith, Caleb. "'A New House Every Minute': How Boxabl's Modular Home Platform Is Making Affordable Housing A Reality And Attracting A Waitlist Of Over 160,000". Benzinga. Retrieved March 1, 2023.
  34. ^ "Why Have 40,000 Investors Bought into Boxabl? - Grit Daily News". February 20, 2023. Retrieved March 1, 2023.
  35. ^ Newsource, C. N. N. (February 3, 2023). "Company unveils 3 bedroom tiny home for $150,000". WKRC. Retrieved March 1, 2023.
  36. ^ "North Las Vegas modular home maker opens 2nd factory". Las Vegas Review-Journal. January 10, 2023. Retrieved November 22, 2023.
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