Hyperloop One, the Los Angeles startup held its first propulsion test Wednesday morning on a half mile track built in the desert north of Las Vegas.
The test involved a 10-foot sled with a propulsion motor that went on a two-second trip, hitting speeds of about 116 miles per hour before it crashed into a pile of sand.
Ultimately, the Los Angeles-based company wants to carry passengers at 750 miles per hour.
Hyperloop One has pods that would carry passengers inside of low pressure tubes, which use electromagnets.
The company hopes to carry out a full system test before the end of the year.
Watch video of the test below.
Meanwhile, competition continues to escalate over designs for the final product.
Earlier this week, another Los Angeles-based company called Hyperloop Transportation Technology (HTT), which is led by NASA, announced it wants to use magnetic levitation to run the Hyperloop.
A third company out of San Francisco is also working on its own system.
Officials say the final Hyperloop product is expected to launch in 2020.