Time is money too. The drive from SF to LA is about 5.5 hours (per Google Maps). 5.5 hours of stress and frustration, compared to 30-40 minutes of hyperloop...
Just as an anecdote.. We had some friends from Orange County come visit us in SF this past weekend.
* OC -> SF -- Left at 3pm, took 9.5hrs to drive
* SF -> OC -- Left at 9pm, took 7 hours to drive
There is random night construction as well as detours and traffic to worry about on I-5. Half an hour would be a no-brainer, even if it only went so far as downtown LA.
It's kind of cool that Elon Musk is competing with himself here -- Hyperloop vs. a 3rd generation Tesla (which should be even cheaper than $45 one-way per car, including depreciation and electricity.)
The real problem, even once you add self-driving cars, is I-5's limited capacity.
What about freight?