It appears Elon Musk is planning to move Tesla's legal domicile from Delaware to Texas, a decision fueled by a recent legal judgment. Musk took to his social media platform X to poll readers regarding Tesla's state of incorporation. There were over 1 million votes; 87% supported a move to Texas. Musk responded: The public vote is unequivocally in favor of Texas! Tesla will move immediately to hold a shareholder vote to transfer state of incorporation to Texas.
The public vote is unequivocally in favor of Texas!
Tesla will move immediately to hold a shareholder vote to transfer state of incorporation to Texas. https://t.co/ParwqQvS3d
This could be a huge knee-jerk reaction. The Delaware Court of Chancery, presided over by Judge Kathleen McCormick, delivered a ruling that nullified Musk's significant $55.8 billion compensation package, awarded by Tesla in 2018. This package, linked to performance milestones, was a cornerstone in Musk's path to becoming the wealthiest individual globally, with a net worth estimated between $198 billion and $220 billion as of November 2023. The package was also approved by shareholders.
The Delaware Dilemma, the Texas Advantage
Delaware, a haven for corporations due to its favorable tax regime and flexible corporate laws, houses numerous major companies. However, the state has come under scrutiny from Musk, who criticized it for handling corporate matters, particularly after the court's decision.
Texas presents a compelling alternative, offering more lenient regulations on executive compensation and potentially allowing for more generous CEO remuneration without the strict fiduciary constraints found in Delaware. This flexibility could significantly impact Tesla's governance and Musk's compensation strategy moving forward. However, shareholders must also consider Musk’s motivation for moving to Texas. Recently, Musk said he’d want at least a 25% stake in Tesla to continue developing AI at the company.
Shareholder Response and Corporate Governance
The decision to consider Texas as the new legal home for Tesla is not without its complexities. Now faced with a pivotal vote, shareholders must weigh the implications of such a move. The change raises questions about Tesla's corporate governance and Musk's motivations, suggesting a potential shift towards a governance model that favors executive freedom over traditional fiduciary constraints.
The transition from Delaware to Texas could have far-reaching legal and regulatory implications for Tesla. Introducing a business court in Texas, mirroring Delaware's Chancery Court, signifies Texas's ambition to become a new center for corporate litigation and governance.
Tesla's Texas Ties Deepen
The potential relocation is not Tesla's first venture into Texas. The company moved its headquarters to Austin in 2021, drawn by the state's favorable tax policies and regulatory environment. This move aligns with Musk's broader strategy of expanding Tesla's operational footprint in Texas, where it has already established a significant presence with its gigafactory. That is the Cybertruck's home and the next-gen platform's future home.
Musk's proposal to shift Tesla's legal domicile to Texas is more than a mere change of address; it represents a strategic maneuver to reshape the company's future. This move, contingent upon shareholder approval, could redefine Tesla's corporate governance, compensation practices, and legal standing, setting a precedent for other corporations contemplating similar transitions.
Subscribe
Subscribe to our newsletter to stay up to date on the latest Tesla news, upcoming features and software updates.
Tesla maintains two primary software branches: the main feature branch and the FSD branch. In general, the FSD branch lags behind on new features pushed to the main branch but provides a more recent FSD version.
However, now Tesla is updating the main branch to a much more recent version of FSD.
Current FSD Build & Shadow Mode
Nowadays, the main branch always includes an older but stable build of FSD. It’s been on FSD V12.3.6 since July 2024. So, if you subscribe to FSD in North America, this is the FSD version you’ll receive until you get added to the FSD track.
Even if you don’t subscribe to or have purchased FSD, your vehicle has v12.3.6 on it. That includes vehicles in regions where FSD isn’t available for general use, such as Europe and China. In those cases, FSD runs in Shadow Mode, providing training data to Tesla if you’ve agreed to their data privacy policies. So Tesla is always analyzing what the vehicle would do compared to what the driver does. When there are contradictions, these are the clips and data Tesla will want to analyze.
FSD V12.5.4.2 on Main Branch
For the first time in five months, Tesla has now updated the baseline version of FSD in the main branch. The new version included with 2024.44 updates is FSD v12.5.4.2. This Tesla is updating the baseline FSD version to FSD V12.5.4.2
FSD 12.5 includes many features for a much smoother experience compared to FSD 12.3.6. Many users will appreciate that it gets rid of the steering wheel nag and instead relies on the cabin camera to provide real-time driver monitoring. This version also includes support for sunglasses with driver monitoring. It’ll be a big upgrade for anyone coming from FSD 12.3.6.
It's always a good thing when Tesla updates the baseline FSD version—that means that Tesla is confident that this new baseline is considerably safer and will continue to train the fleet against it.
What Update Am I Getting?
If you’re already on FSD V12.5.4.2, you’ll likely remain on that FSD build unless V13.3 manages to make its way to the public as Tesla originally planned, but that’s unlikely to happen before the Thanksgiving holiday. In all likelihood, you’ll be getting update 2024.44, which will give you some additional Tesla features while keeping you on the same FSD version.
For those who are already on 2024.44 - if you subscribe now, you’ll have V12.5.4.2 enabled on your vehicle.
If you have a Cybertruck, then you’ll receive update 2024.39.5 with FSD V12.5.5.3. They’re on a unique build for the moment, and this will likely be the case until Tesla acquires enough training data from the Cybertruck fleet.
The Cybertruck is having an eventful November. Just last week, we shared the news that Tesla isn’t offering their in-house wrap service for the Cybertruck anymore; the Foundation Series is now available in inventory in select US locations, Crossbars have arrived, and faster charging is around the corner. Now there’s even more to discuss about the stainless steel beast.
Projection Puddle Lights
Like the recently launched puddle lights for the Model 3 and Model Y, Tesla has introduced a set of add-on Projector Puddle Lights for the Cybertruck. These Cybertruck-specific ones go for $75 USD, or $105 CAD and are available in both the Canadian and US Tesla stores.
However, these don’t have the Tesla wordmark - instead, they feature the iconic Cybertruck symbol and, in our opinion, look even nicer. Here’s to hoping Tesla also introduces a set with the graffiti-style Cybertruck wordmark.
Powershare in Canada
While the Foundation Series Cybertruck has been getting delivered in Canada since November 7th, there was no news on Powershare being supported due to regulatory constraints. On the 20th, Foundation Series owners in Canada began to receive emails to get their Powershare installs started through Tesla’s official installer - Qmerit.
More to follow on pricing and the process as we receive our Canadian quote from Qmerit soon.
FSD in Canada
The Cybertruck Program Manager, Siddhant Awasthi, confirmed that with Powershare now becoming available, FSD for the Cybertruck in Canada will also become available soon. Canadian trucks shipped with a factory software build that didn’t include FSD, but did include TACC and stoplight/traffic control.
Early this morning Tesla began rolling out a new version of FSD 12.5.5.3 for the Cybertruck, which is update 2024.39.5. Will this be the version that rolls out in Canada?
Update: Yesterday, Tesla started rolling out FSD on the Cybertruck in Canada for the first time. The update being rolled out is update 2024.39.5, which not only features the latest FSD available on the Cybertruck, version 12.5.5.3, but it also includes all the features update 2024.38, which includes the huge Sentry Mode improvements that reduce power consumption by about 40%.
Following Integrated Flight Test 6 for SpaceX’s Starship, Elon Musk confirmed that uncrewed Starships are likely to begin making their way to Mars in about 2 years. You’re probably going to ask what’s going to be in those Starships - that’s what Brett Winston on X asked as well. Elon confirmed that Cybertrucks and Optimus robots will be among some of the first items landing on Mars.
That’s a ton of awesome news for Cybertruck, and there’s absolutely going to be more around the corner, especially as we await the big Tesla Holiday Update. While you wait, why not take a look at our Holiday Update Wishlists?
![Tesla Cybertruck: Puddle Lights, FSD/Powershare, Mars? [Update: FSD Now Available in Canada]](https://www.notateslaapp.com/img/containers/article_images/cybertruck/ct_puddle_lights.jpg/003e03bf5f8ad3660801db3b8a52d222/ct_puddle_lights.jpg)
![First Look at Tesla’s New 'Blind Spot While Parked' Feature [VIDEO]](https://www.notateslaapp.com/img/containers/article_images/model-3-2024/blind-spot-indicator-monitor.jpg/4cdcb11af7b1c7cf021ba96588fd4f1a/blind-spot-indicator-monitor.jpg)
