With the exception of one team this is largely a practical academic exercise.
The Hyperloop concept could be found in a physics text book circa 1990 (or earlier) as a thought exercise of how rail systems could achieve speeds equal or faster than air travel. Practical considerations of the cost to build such a large scale system (for example LA to NY) would be approaching a national commitment approaching that of the "Man on the Moon" of the late 60s (~2.5% of the USA national GDP for 10 years - effectively 1 in 40 people).
This competition is similar to the solar car challenges of the 1990s / 2000s where it exists to expose the engineering students to the large number of compromises needed to achieve the desired goal (weight, power, size, cost, etc). Ability to find an optimal solution while addressing the multitude of competing constraints is a key talent to be able to succeed in any engineering discipline - especially aerospace (talent identification for Space-X?).
Back to the issue of Hyperloop - we are probably 20 years away from a working system with a number of technologies still yet to be developed. Toyota released the Prius in 1997 as result of their development efforts towards a fully electric car. At the time the technology for a fully electric car was "not ready yet" and the release of a hybrid car was a bridging technology. As a development platform towards fully electric cars the hybrids have successfully filled its original role as a number of manufacturers sell plug-in electric cars (we have moved a step down the path to mainstream electric vehicle transport).
The rolling stock for Hyperloop is only one part of the problem (my guess is this will be resolved within 5 years) - the other monster that needs to be tamed is building the track and associated infrastructure cost effectively. For comparison: Railway sidings are $1-$2 million/mile, Highway $4-$10 million/mile, Light rail $35 million/mile, High speed rail (California) $56 million/mile.
What is required is an X-Prize style competition for building the Hyperloop track as the cost of the rolling stock is likely to pale into insignificance.