- Sun Jun 08, 2025 4:14 am
#10061
Tesla's new 3% shareholder requirement for derivative lawsuits: Genius or overreach?
Tesla just raised the bar for shareholders looking to sue its board or executives. Requiring a 3% stake, translating to roughly $33.7 billion given Tesla's current market cap, essentially makes such lawsuits impossible for any individual investor. Is this a shrewd move to protect the company from frivolous lawsuits, or a blatant attempt to shield leadership from accountability? Considering recent controversies surrounding Elon Musk and the fluctuating public perception of Tesla, is this change a necessary evil or a dangerous precedent? How might this impact future corporate governance and shareholder rights, not just at Tesla, but across the industry? Could this move backfire and further erode public trust in Tesla, or will it be seen as a bold but ultimately beneficial decision? Share your thoughts and predictions.
Tesla just raised the bar for shareholders looking to sue its board or executives. Requiring a 3% stake, translating to roughly $33.7 billion given Tesla's current market cap, essentially makes such lawsuits impossible for any individual investor. Is this a shrewd move to protect the company from frivolous lawsuits, or a blatant attempt to shield leadership from accountability? Considering recent controversies surrounding Elon Musk and the fluctuating public perception of Tesla, is this change a necessary evil or a dangerous precedent? How might this impact future corporate governance and shareholder rights, not just at Tesla, but across the industry? Could this move backfire and further erode public trust in Tesla, or will it be seen as a bold but ultimately beneficial decision? Share your thoughts and predictions.
- By allmaxh