Musk Says Tesla Will Hold Vote to Move to Texas: Is This a Strategic Decision or Knee-Jerk Reaction?

By Kevin Armstrong
YouTube/NYT Events
YouTube/NYT Events
YouTube/NYT Events

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.

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.

Tesla Looks to Add New Full Self-Driving and Premium Connectivity Plans in Canada

By Kevin Armstrong
FSD subscription may be coming to Canada
FSD subscription may be coming to Canada

Tesla may soon support a monthly FSD subscription and the Premium Connectivity annual plan for Canadian customers. The possible move was discussed on X as Tesla’s Vice President of Public Policy and Business Development, Rohan Patel, responded to inquiries.

FSD Beta Subscription in Canada

The potential introduction of the FSD beta subscription in Canada represents a notable evolution in Tesla’s FSD pricing. The monthly subscription is available in the U.S. for $200 USD per month, this service allows Tesla owners to access the company’s suite of Advanced Driver Assistance Systems (ADAS). Considering currency exchange rates, this could translate to around $270 CAD monthly for Canadian consumers. This pricing strategy aims to make Tesla’s ADAS features more accessible, offering flexibility to subscribe or unsubscribe based on individual needs and circumstances, such as seasonal driving preferences. Currently, Canadian customers only have the option to buy FSD in full at $16,000 CAD.

While a subscription service for FSD Beta may allow more drivers to try out the technology, it will also assist Tesla in gathering more information and improving the system faster. The more miles clocked by FSD, the more the system learns.

Miles driven on FSD
Miles driven on FSD

Premium Connectivity Annual Plan

Alongside the FSD beta, Tesla is exploring the possibility of offering an annual subscription model for its Premium Connectivity service in Canada. Tesla started offering an annual subscription for Premium Connectivity in the US back in 2022 at $99.99, representing a 20% savings. Premium connectivity offers drivers additional features such as Live Traffic Visualization, Satellite-View Maps, and streaming services such as Netflix, Spotify and YouTube. The anticipated price for Canadian subscribers is set to be around $139.99 annually, offering a savings opportunity compared to the current monthly subscription rate of $13.99 CAD.

Patel's engagement on X highlights Tesla's proactive approach to addressing potential legal and regulatory barriers that might impede the introduction of these services in Canada. He committed to investigating these issues, underscoring Tesla's dedication to its Canadian customer base.

Strategic Investments and Enthusiastic Community

Tesla's plans for Canada go beyond just offering new subscription services. The company has made significant investments in manufacturing, engineering, and supply chain operations in the country.

Tesla FSD Beta v12 Auto Parks, Completes U-Turns, But Removes Traffic-Aware Cruise Control Ability

By Kevin Armstrong
Tesla has released FSD Beta v12 to some customers
Tesla has released FSD Beta v12 to some customers

Tesla's FSD Beta version 12.2.1, update 2023.44.30.20, recently started going out to some owners, which resulted in more videos posted on X. There are several examples of amazing technology at work, but also evidence that more work is needed.

Ashok Elluswamy, Tesla's Director of Autopilot Software, recently highlighted the sophistication of FSD Beta v12 on X, emphasizing how the system's end-to-end approach is tackling complex driving scenarios with remarkable ease. His response came to a video of FSD maneuvering around a large puddle.

FSD V12 Does U-Turns

One of the standout features of FSD Beta v12 is its ability to execute U-turns seamlessly when required by the route. This is where real-world examples show the good and the bad of this highly advanced maneuver come into play. X user AI DRIVR, an account posting several high-quality videos of V12.2.1 in action, demonstrates a flawless U-turn.

Unfortunately, not all U-turns posted on X are as pretty; Randolph Kim has been experimenting with several scenarios. While later videos showed better behavior with u-turns and roundabouts, the earlier attempts had to be disengaged.

Parking Mode / First Glimpse at Park Seek

During our first glimpse of FSD v12 during Musk’s livestream, we noticed a new behavior when the vehicle reached its destination. Instead of just stopping, the vehicle now pulled over to the side of the road. However, it looks like the newest release goes one step further.

In a video by ArthurFromX, the vehicle is navigating to a parking lot. Not only does the vehicle successfully navigate to the parking lot, but it hunts around for a spot and then successfully parks without any additional instructions.

This could be our first glimpse at Tesla’s upcoming Park Seek feature that will eventually let the vehicle drop you off at the door and then go park itself.

Return of the Snapshot Button

Tesla appears to have reintroduced the Snapshot button in this update, at least to some owners. The snapshot button allows drivers to send additional information to Tesla regarding Autopilot's performance. This feature and the existing voice command feedback option provide Tesla with invaluable data to improve the FSD system further.

Automatic Speed Offset

Another noteworthy addition is the Automatic Set Speed Offset feature, which grants the vehicle autonomy to adjust its speed based on factors such as road type, traffic flow, and environmental conditions. The video below shows this feature in action. The feature is turned off by default and it currently only applies to street-level roads, but it’s a shift toward more human-like behavior for FSD Beta.

TACC is No Longer Accessible

Recently, Tesla revised the Autopilot activation method to avoid confusion and offered drivers two choices — a single pull of the stalk to enable FSD Beta or the traditional two taps. However, with FSD Beta v12, drivers are now required to use the single pull method to activate Autopilot.

Traffic-Aware Cruise Control (TACC) has traditionally been one pull of the stalk and Autopilot two pulls, but with the new single-pull method to activate Autopilot, TACC becomes unavailable. This hasn’t been a big deal until the release of FSD v12. With v12 Tesla is now requiring FSD Beta to use the single tap activation method.

This means that if a driver chooses to use FSD Beta, then TACC is no longer accessible. The only way to enable it is to go into Controls > Autopilot and turn off FSD Beta and instead choose Autosteer (or TACC). However, if you wish to enable FSD Beta again later, then it requires the vehicle to be in Park. Switching between Autosteer and FSD Beta isn’t practical for drivers. For those who rely on TACC, this issue could be a significant disadvantage in this release.

Update 2023.44.30.20

FSD 12.2.1
Installed on 0% of vehicles
0 Installs today
Last updated: Feb 25, 6:00 am

Several drivers have praised FSD Beta v12’s ability to navigate complex situations, better decision-making, and smoother behavior. However, as with any cutting-edge technology, there have been instances where the system's responses have room for improvement, highlighting the importance of its continued development.

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