"The Securities and Exchange Commission announced today that Elon Musk, CEO and Chairman of Silicon Valley-based Tesla, Inc., has agreed to settle the securities fraud charge brought by the SEC against him last week," the statement released on Saturday said.
In addition, Musk and Tesla will have to pay a penalty worth $20 million each in compensation to harmed investors.
On Thursday, SEC filed a lawsuit against Musk for fraud, citing his public statements on taking the company private, which caused "confusion and disruption" in the stock market and harmed investors. The regulator among other recommendations has asked a federal judge to prevent Musk from serving as a head of a public company.
On August 7, Musk via Twitter said he could take the California-based company private at a price of $420 per share just as the stock was trading at around $358 per share. Tesla’s stock price increased by more than six percent from the time of Musk's tweet until the close of trading that day on the NASDAQ exchange.