Neuralink’s Value Jump Spurs Employee Interest in Cashing Out

Following a significant increase in Neuralink’s valuation after its first human trial, some employees at Elon Musk‘s brain implant company are preparing to sell their stock, according to insiders.

Stock compensation is a major incentive for employees at startups like Neuralink. Since these shares are not publicly traded, employees wanting to sell them without the company’s approval must use complex private market exchanges.

Sources familiar with the matter revealed that some Neuralink employees and investors are anticipating a tender offer from the company as early as next month. This would allow staff to sell their shares back to the company. Neuralink and Musk have not commented on the situation.

The valuation boost, evident in secondary market trades, indicates a rise to as much as $8 billion, more than double the previous year’s value. Despite thin trading volumes that don’t provide a definitive valuation, the trend points to a substantial increase.

Neuralink’s first human trial has been declared a success, resolving an initial issue with the implant’s threads retracting from the first patient’s brain. The company is now preparing for more trials in Britain and Canada, with plans to implant a second patient soon.

The exact details of the potential tender offer remain unknown. Last fall, Neuralink’s tender offer for employees was priced at around $19 per share, while some shares traded on the secondary market close to $35, according to Reuters and other sources. It’s common for startups to offer tender prices below secondary market values.

Musk has a history of creating scarcity for shares in his startups, including SpaceX and artificial intelligence developer xAI, making them exclusive to select investors like Peter Thiel’s Founders Fund. This scarcity has made the shares highly sought after, with investors typically receiving limited information on the startups’ performance. A spokeswoman for Founders Fund declined to comment.