Elon Musk's Brain Implant Startup Neuralink Changes Location of Incorporation From Delaware to Nevada
By Jace Dela Cruz
Feb 10, 2024 02:39 AM EST
Feb 10, 2024 02:39 AM EST
Elon Musk's brain implant company, Neuralink, has changed the location of its business incorporation from Delaware to Nevada, according to both states' business portals.
According to Reuters, the location of incorporation refers to the jurisdiction where a company is legally registered and recognized as a corporate entity. It determines the laws and regulations under which the company operates, including taxation, corporate governance, and legal liabilities.
Bloomberg reported that the change was completed Thursday, and a notice was sent to shareholders in the company. According to the outlet, the notice informed the shareholders that their outstanding shares in the Delaware corporation would now be incorporated into the Nevada corporation's outstanding shares.
This development comes a week after a Delaware judge voided Musk's $55 billion Tesla pay package. Musk then announced that Tesla, which is headquartered in Austin, would hold a shareholder vote to transfer its state of incorporation to Texas from Delaware.
However, legal experts told Reuters that changing Tesla's state of incorporation could come with challenges, such as investor suits, particularly if it was seen as a maneuver to secure his pay package. Tesla was incorporated in Delaware in 2003.
Elon Musk previously switched the incorporation of X from Delaware to Nevada when he changed the name of the social media company from Twitter. According to Bloomberg, the corporate laws of Nevada provide more protections for executives against investor lawsuits.
Two weeks ago, Musk announced on X that Neuralink implanted a microchip into a human brain, and the patient was recovering well, with initial results showing a "promising neuron spike," which means the company is getting recordings from the patient's brain.
Neuralink aims to create a device that could be implanted in humans to monitor brain activity and allow these individuals to control computers using their minds. Musk earlier said this new technology will allow "control of your phone or computer, and through them almost any device, just by thinking."
"Initial users will be those who have lost the use of their limbs. Imagine if Stephen Hawking could communicate faster than a speed typist or auctioneer. That is the goal," the tech billionaire noted.
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