Neuralink Corp., Elon Musk's brain implant venture, moved its business incorporation from Delaware to Nevada to sever ties with the state where Musk has seen two major court setbacks: one involving salary and the other involving his acquisition of Twitter.
The office of the Nevada secretary of state and a message to the company's shareholders both claim that the change was finished on Thursday. A Delaware judge invalidated Elon Musk's $55 billion compensation package from Tesla Inc. last week. Musk counseled startups against incorporating in the state in a post on his social network, X. After reviewing the notice, Bloomberg was able to advise stockholders that their outstanding shares in the Delaware corporation would now be combined with their outstanding shares in the Nevada corporation.
Philip Mao, a lawyer for Neuralink, declined to comment
Musk announced via Twitter last week that Neuralink had successfully implanted a device in a human patient. The technology developed by the business seeks to enable those who have experienced catastrophic injuries to use computers just by thinking. Musk eventually claimed that users would be able to "control your phone or computer, and through them almost any device, just by thinking" with Neuralink's technology.
Musk has reincorporated businesses outside of Delaware before, and Neuralink could not be the last. When Musk rebranded the firm from Twitter, he also relocated the incorporation of X from Delaware to Nevada. Executives have additional defence against investor lawsuits thanks to Nevada's corporate laws.
Incorporated in Delaware in 2003, Tesla has its headquarters located in Austin. Musk pledged last week to attempt to change Tesla's corporate state from Delaware to Texas, but a shareholder vote would be needed for this change.
The nation's incorporation capital, Delaware, is where Musk has a lengthy history of legal problems. Over 70% of Fortune 500 businesses are headquartered in the state, and its chancery court justices are well regarded as experts in business law, capable of expediting case resolution. The majority of well-known merger and acquisition cases are tried in state courts without juries. Delaware is the destination of foreign firms seeking resolution of corporate issues.
A Delaware judge dismissed an investor lawsuit against Musk's $2.6 billion purchase of solar power company SolarCity two years ago, ruling that the multibillionaire businessman had not wrongfully coerced other directors into accepting an excessive takeover offer for SolarCity. Musk had less success in 2022 when he attempted to withdraw his offer to purchase the social media network that was formerly known as Twitter. The same judge who would later zap his 2018 salary plan, Judge Kathaleen St. Jude McCormick, delivered him numerous setbacks in pretrial judgements.