Henderson, Nevada – Neuralink Corp., a brain implant company owned by Tesla CEO Elon Musk, has relocated its business incorporation to Nevada from Delaware. This move comes after Musk faced legal setbacks in Delaware, including a ruling against his $55 billion pay package for Tesla Inc.
The change, completed Thursday, was confirmed by the office of the Nevada secretary of state and a notice sent to shareholders in the company. This shift aims to distance Neuralink from a state where Musk has faced legal challenges, such as the voiding of his Tesla pay package by a Delaware judge.
Neuralink’s lawyer, Philip Mao, declined to comment on the relocation. This decision is part of a larger trend for Musk, who previously moved X’s incorporation – now known as Twitter – from Delaware to Nevada. The corporate laws of Nevada offer more protections for executives against investor suits, influencing Musk’s strategic incorporations.
Neuralink recently made headlines when Musk announced the successful implantation of a brain device in a human patient for the first time. The technology, aimed at helping people with traumatic injuries operate computers using their thoughts, reflects Musk’s vision of giving individuals control of electronic devices through neural interfaces.
In addition to Neuralink, Musk also expressed intentions to shift Tesla’s incorporation from Delaware to Texas. This move, however, would require a shareholder vote. Delaware is recognized as the country’s incorporation capital, hosting over 70% of Fortune 500 companies. The state’s chancery court judges are known for expeditiously handling high-profile corporate disputes.
Musk’s history of legal disputes in Delaware includes a 2020 case where a judge dismissed an investor’s challenge to his $2.6 billion acquisition of SolarCity. Another setback occurred when Musk attempted to back out of his bid to purchase the social media platform once known as Twitter, facing pretrial rulings that did not favor him. This series of legal challenges in Delaware has driven Musk to seek more favorable jurisdictions for his business incorporations.