Musk's Hyperloop moves closer to reality

The Hyperloop , just an idea in the mind of Elon Musk two years ago, is moving closer to becoming reality.

Hyperloop Transportation Technologies has signed an agreement with a developer in central California to build a five mile Hyperloop line in an area along Interstate 5.

"This is a phased process. We've done feasibility studies and now we will be able test all aspects of the Hyperloop," said Ahlborn.

The Hyperloop is the idea of Tesla Motors (TSLA) and Space Exploration Technologies founder Musk, who outlined a vision for transporting people at high speeds in a capsules that will be pushed through a series of tubes stretching over thousands of miles.

"This is big step," said Dirk Ahlborn, CEO of the JumpStartFund, which created Hyperloop Transportation Technologies last year. "It's time to take the Hyperloop from concept and design and build the first one."