This is very, very wasteful compared to actual mass transit. A subway network is much more effective at delivering people. If he's looking for mega-good, Musk would do significantly better to drop a full subway network. edit: tunnelling is a broadly solved problem. It's difficult, expensive, slow, etc. But there's no engineering reason why a hole in the ground can't happen. Musk might be able to drive some significan…
The video shows some sort of shuttle using the track. Those could be small busses or even public transport. http://imgur.com/a/Wv8YD In effect, this is a subway system. It's an underground rail system. The major difference is that you have a mixture of public and private passenger vehicles and smaller vehicles.
Edit: I mean, sure, great science fiction fun to think about!