Tesla blocks stockholders with less than 3% shares from suing officers on its behalf

[highplainsdem]

Source: Reuters

Tesla (TSLA.O) blocked shareholders who own less than 3% of its shares from suing its directors or officers on behalf of the electric vehicle maker for breach of duties, according to a regulatory filing on Friday.

Three percent of Tesla's shares amounts to about 97 million shares worth about $34 billion as of Friday's close.

That is far higher than the nine shares owned by Richard Tornetta when he sued Tesla's CEO Elon Musk and several of its directors over his $56 billion pay package in 2018. Tesla was at the time incorporated in Delaware, where such a threshold does not exist.

-snip-

The amendment on Thursday to the bylaws of Tesla, now incorporated in Texas, follows a new law in the state this week that allows companies to set a threshold of up to 3% shareholding for derivative lawsuits as part of "restrictive new provisions to limit abusive shareholder litigation." A derivative lawsuit is brought by a shareholder or group of shareholders on behalf of the company, against its directors or officers, alleging a breach of their fiduciary duties.

Read more: https://www.reuters.com/sustainability/sustainable-finance-reporting/tesla-blocks-stockholders-with-less-than-3-shares-suing-officers-its-behalf-2025-05-17/

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A new law in the state this week...

[OAITW r.2.0]

1. Too fucking bad you signed on and will lose all your money.

Tesla car brand is shit now....probably Starlink ( I am dumping) and Powerwall as well. Elon's future is Trump Government Federal Handouts...in a big, multi-billion dollar way.

[Silent Type]

2. I bet there are plenty of minority stockholders who would join in a suit like that. Of course, Tesla seems on upward tre

trend now, though well below highs before Musk became nationally/internationally known as a POS Nazi.

[OAITW r.2.0]

3. Who is going to buy Tesla in the future?

They need sales and Elon has fucked that.

[Silent Type]

4. I wouldn't and I'd be too embarrassed to ride in one. But white wingers might.

Wouldn’t be surprised to see a big swing in sales to Republicans.

[OAITW r.2.0]

5. Doubtful....they love gas/diesel. Electric is communist.

[Silent Type]

6. trump is hawking Tesla on WH lawn. Every Cybertruck I've seen was driven by a likely winger.

Majorie Taylor Greene’s Xhusband — who is even more white wing if possible — was recently arrested for yelling slurs at Muslim ladies from his Cybertruck.

These people thought Russia was communistic decades ago, now they seem to revere it. I can’t keep up with all the changes.

Plus, trump will probably award Tesla some kind of big contract, electric postal trucks, military, etc. Hook it up to big solar panels, and prepers don’t need petrol when chaos hits.

OK, I’m just BSing. Don’t own their stock and wouldn’t if I had the money. But these cockroaches are hard to eradicate .

[OAITW r.2.0]

7. The truck is a POS. I have a a Dodge Ram 1500 4WD.

V-6 small engine...23 MPG on my trip to NH last week. I need it in the winter to get to my house. Probably my last vehicle.

[Silent Type]

8. The people I worry about are white wingers in their 40s - 60s and incels. Musk will come out with a Proud Boyz

and OafKeeper version. People, meaning white wingers, will buy then. Hell, I can see the logo on the steering wheel— musk giving Nazi salute with a Swastika.

Heck, Musk could come out with a gas/diesel-guzzling edition.