Tesla amends bylaws to restrict shareholder lawsuits, requiring at least 3% stock ownership.

Tesla has updated its corporate bylaws, requiring shareholders to own at least 3% of its stock to file a lawsuit against the company for breaches of fiduciary duties. This change took effect on May 15 and is based on Texas state law, which allows corporations to limit shareholder lawsuits. The move follows a 2018 case where a shareholder owning just nine shares filed a lawsuit against Tesla, leading to the voiding of Elon Musk's CEO compensation package.