Elon Musk's business Neuralink relocates to Nevada after leaving Delaware

Musk has already founded businesses outside of Delaware before, and Neuralink could not be the last.

Following an attempt to sever connections, Elon Musk's brain implant firm, Neuralink Corp., relocated its location of corporate incorporation from Delaware to Nevada. Where Musk has had two major legal setbacks: the first related to his compensation, and the second to the purchase of Twitter.

According to a message to the company's shareholders as well as the Nevada Secretary of State's office, the change was completed on Thursday. A Delaware court barred Musk's $55 billion Tesla Inc. last week. There was a cancellation of the wage package. Advising creators not to join the state, Musk said on his private social network X.

According to the notification given to shareholders, which Bloomberg examined, they would now be included in the outstanding shares of the Nevada company together with their existing interests in the Delaware corporation.

Philip Mao, a lawyer for Neuralink, refused to comment.

Musk announced via Twitter last week that Neuralink has successfully implanted a device in a human patient. With the aid of this firm, individuals who have suffered catastrophic injuries will be able to control computers with only their thoughts. Musk's statement on Neuralink's technology ultimately states that users would be able to "control of your phone or computer, and almost any device across them, just by thinking."

Musk has revived several businesses outside of Delaware before, and Neuralink may not be the last.

Previously, Musk had relocated X's incorporation from Delaware to Nevada and altered the business name from Twitter. Executives are better protected against investor claims under Nevada's business laws.

Incorporated in Delaware in 2003, Tesla has its headquarters located in Austin. Musk pledged last week to attempt to get Tesla's incorporation transferred from Delaware to Texas; however, this would need a shareholder vote.

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 Chancery Court justices there are highly regarded as authorities in business law, capable of expediting case resolution. The majority of well-known merger and acquisition cases in the state are tried without a jury. Even international businesses go to Delaware to have business conflicts settled.

A Delaware court rejected an investor case two years ago, stating that Musk had bought fellow directors into overvaluing the $2.6 billion purchase of SolarCity, a producer of renewable energy. was not coerced into accepting the deal unfairly.

Musk had less success in 2022 when he attempted to withdraw his offer to purchase the social media network that was once known as Twitter. The same judge that invalidated his 2018 compensation proposal, Judge Kathleen St. Jude McCormick, chastised him heavily in pre-trial judgments.