LAS VEGAS, Nevada – The Boring Company (TBC) has announced plans to change its state of incorporation to Nevada by March 2023, following a recent decision by Elon Musk-led companies to switch their state of incorporation. TBC, like other companies led by Musk, was previously incorporated in Delaware. This move comes shortly after Neuralink also announced its switch from Delaware to Nevada.
The decision to incorporate in Nevada seems strategic for The Boring Company, as its largest project to date is located in Las Vegas. The company is currently working on the Vegas Loop, an extensive tunnel system across Sin City. With stops already in operation, particularly those connected to the Las Vegas Convention Center (LVCC) Loop, TBC has demonstrated the viability of its concept by catering to thousands of visitors.
This move follows a recent court ruling in Delaware that voided Tesla’s 2018 CEO compensation plan. The ruling, which deemed Musk’s pay package unreasonable, has garnered disagreement from many TSLA investors. In response, Musk has sought public opinion on whether Tesla should also change its state of incorporation to Texas.
The suggestion received overwhelming support, prompting Musk to consider moving not only Tesla but also his other companies out of Delaware. This shift reflects a broader trend among Musk-led companies and emphasizes the strategic decisions being made in light of recent legal developments.
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