Elon Musk

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Tesla and SpaceX CEO Elon Musk announced today that he plans to build a test version of his Hyperloop transit system, and that test loop will likely be built in Texas.

Musk announced plans for a Hyperloop in California in 2013. The high-speed transit system would move at rates up to 800 miles per hour, potentially cutting the five-plus hour drive from San Francisco to Los Angeles down to about an hour.

The test track potentially in the works for Texas would be a five-mile loop, Musk said. One trip around that loop would take about 22.5 seconds.

High-flying billionaire Elon Musk's Tesla Motors has seen its shares skid the past couple days because they've been downgraded by analysts and because of a YouTube clip showing one of the all-electric luxury cars engulfed in flames earlier this week.

Just before noon ET, a share of Tesla was trading around $169.50 — down about 6.5 percent for the day and $25 (13 percent) below its 52-week high of $194.50.