Elon Musk settles with SEC, gives up Tesla chairman position and load of cash

Late last week, the SEC charged Elon Musk with fraud and sought to remove him from serving as an officer or director of a publicly traded company. Over the weekend, Musk reached a settlement with the SEC. Under the deal, the Tesla boss will have to step down as chairman of Tesla and will be unable to return to that post for the next three years. Additionally, Musk and Tesla have each agreed to pay $20 million in penalties.

The SEC also ordered Tesla to add two new, independent directors to its board, and to rein in Musk's use of social media.

Musk and Tesla have each agreed to pay $20 million in penalties, which will distributed to those investors that were harmed. "At the Commission, the interests of ordinary investors are at the front of our minds and, in matters involving misconduct, we seek to serve those interests to the extent practicable while also ensuring that we remediate and deter misconduct," said SEC Chairman Jay Clayton in a separate statement released at the same time as news of the settlement.

Via: ARS Technica