Elon Musk company reveals major leap forward

As calendars turn to June, many people are waiting for an event that Elon Musk has touted for months.

Tesla (TSLA) is gearing up to launch its fleet of autonomous robotaxis, an event upon which Musk has staked a great deal. The electric vehicle (EV) producer’s global market share has taken a significant hit, and despite some recent growth, TSLA stock is still making up the ground it lost this year.

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Most people’s focus has been on Tesla recently, as this historic event draws near. But it isn’t the only Musk company that is demonstrating progress in a key area. One of his startups recently announced a major milestone that indicates it is well-positioned to keep growing.

Musk has a lot going on right now as he returns to his private-sector responsibilities. Regardless of how Tesla’s launch goes, though, one of his other ventures seems poised to continue advancing.

One of Elon Musk's lesser-known companies recently reported a new funding update.

Image source: Gomes/Getty Images

Controversial Musk startup has great news to report

When a company led by Musk makes headline news, it's typically Tesla or space exploration venture SpaceX. His brain implant startup, Neuralink, is often overshadowed by newer artificial intelligence company xAI, the maker of the Grok large language model (LLM).

Since its founding in 2016, Neuralink has generated quite a bit of controversy, mostly for killing 1,500 animals while testing its products. However, the company recently announced that it has successfully closed out a Series E funding round that netted it an additional $650 million.

In a company blog post published on June 2, Neuralink revealed that its latest capital raise included new funds from noted investors such as Cathie Wood’s ARK Invest, Sequoia Capital, and Valor Equity Partners, among others. Its latest cash influx is a significant increase from its Series D round in 2023, in which it raised $280 million.

“This funding helps us bring our technology to more people, restoring independence for those with unmet medical needs and pushing the boundaries of what’s possible with brain interfaces,” the company states.

This successful capital raise isn’t the only positive development Neuralink has reported. Musk’s company also revealed that five individuals who suffer from severe paralysis have begun using its technology to “control digital and physical devices with their thoughts.”

However, the news comes just after Neuralink rival Paradromics shared that it had tested a brain implant in a human patient with epilepsy. This could compromise Musk’s company’s progress if it establishes itself as a leader in the brain chip market.

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As the Wall Street Journal reports, both companies are part of a new wave of “neurotech startups” that also includes companies such as Synchron and Precision Neuroscience. All four are working hard to emerge ahead of their competitors in this market that Morgan Stanley analysts predict can be worth $1 billion a year by 2041.

Can Neuralink become the leader of the neurotech space?

If the Wall Street analysts’ forecast is correct or even close, there is likely tremendous opportunity for these startups to revolutionize medical treatment. However, as brain chip technology is still a new concept, building public trust is likely to take time.

Neuralink reports, though, that it has also begun clinical trials at multiple “leading institutions for neurosurgical care” across the globe. This includes facilities such as The Miami Project to Cure Paralysis at the University of Miami, the University Health Network at Toronto Western Hospital, and Cleveland Clinic Abu Dhabi.

“We have invested heavily in expanding the number of neurons and brain regions that our device interfaces with to unlock new dimensions of human potential,” Neuralink notes.

While this recent funding round may not be a big as the $6 billion Series C that xAI reported in late December 2024, it should still help the company progress into these new phases of testing as the neurotech race heats up.