The tunnel boring company, led by Elon Musk, recently announced its switch in state of incorporation to Nevada. This strategic move is likely related to the company’s biggest project in Las Vegas, where it is constructing an extensive loop known as the Vegas Loop. The project has already demonstrated the effectiveness of The Boring Company’s concept, particularly with the Las Vegas Convention Center (LVCC) Loop.
The decision to switch state of incorporation follows a court ruling voiding Tesla’s 2018 CEO compensation plan. Judge Kathaleen McCormick of the Delaware Court of Chancery deemed Musk’s 2018 pay package unreasonable, a decision that was met with disagreement from most TSLA investors. This ruling seems to have influenced Musk’s decision to move his companies out of Delaware, aligning with the public sentiment.