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LAS VEGAS — A California company with visions of building a futuristic transportation system to one day zip people and packages at nearly the speed of sound announced Tuesday it is building a test facility in southern Nevada.

Hyperloop Technologies Inc. and the Nevada governor’s office said the 50-acre facility at a fledgling North Las Vegas business park will test a linear electric motor at speeds up to 540 km/h — about half the speed envisioned in a full-scale system.

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“This decision represents another major milestone in our journey to bring Hyperloop to commercial reality,” Rob Lloyd, CEO of the Los Angeles-based company, said in a statement.

The cost of the so-called Propulsion Open Air Test wasn’t disclosed. The company said it has raised $37 million from investors and expects to obtain $80 million more in bond financing.

The concept, which was described in 2013 by Tesla and SpaceX billionaire Elon Musk, rips a page from science fiction and aims to make it reality.