Tesla Moves to Stymie Shareholder Lawsuits After Musk Pay Saga

Tesla Inc. took a step to prevent future shareholder lawsuits like the one that blocked a record-setting pay package for Chief Executive Officer Elon Musk.

The automaker late Friday disclosed changes to its corporate bylaws that will require investors to own at least 3% of the company’s shares in order to “institute or maintain a derivative proceeding.” The move was taken on May 15, according to a regulatory filing.

The change comes days after Texas Governor Greg Abbott signed legislation enacting a series of changes to the state’s corporate law, including allowing companies to adopt ownership thresholds that ...