Elon Musk has agreed to pay the Securities and Exchange Commission $20 million and step down from his role as Chairman of Tesla.
Tesla has also agreed to pay $20 million to the SEC to settle claims that it was unable to control Musk’s tweets. The $40 million sum will be distributed to investors who were harmed by Musk’s tweets, according to an SEC press release.
Tesla, the innovative electric car company, has also decided to appoint two independent directors to oversee Musk’s communications. The SEC had filed a lawsuit against Musk and Tesla for allegedly misleading investors in tweets dated August 7. Musk had tweeted that he had secured funding to take the company private at $420 a share, which had caused Tesla’s shares to soar.
The SEC said Musk had not secured the required funding and had deliberately misled investors. The SEC had looked to ban Musk from serving as a director of any publicly traded company.
Musk will remain as CEO of Tesla, the company he co-founded in 2003 and has helped become synonymous with motor car innovation.