Musk tightens rules for Tesla shareholders after losing billions in bonus lawsuit

After missing out on a multi-billion-dollar bonus due to a shareholder lawsuit, Tesla CEO Elon Musk is changing the rules. Shareholders who wish to file a lawsuit against a Tesla executive must now own at least 3% of the company's shares, as stated in the electric carmaker's new bylaws.

This change is possible because Tesla has relocated its headquarters to Texas, where recent legislation makes it harder for shareholders to sue companies. Executives are now more protected unless the case involves fraud or criminal activity.

Last year, Musk was denied a $100 billion stock package after a small shareholder successfully challenged the compensation plan in court. The judge ruled the allocation unlawful, citing Musk's undue influence over negotiations with the board.

Despite shareholder approval of Musk's bonus earlier this year, the court blocked it again, prompting Tesla's move from Delaware to Texas.