Elon Musk has reached a settlement with the Securities and Exchange Commission on the charges filed earlier this week over his abandoned attempt to take Tesla private. Musk will have to step down as the chairman of Tesla within 45 days, and will not be able to take that role with the company again for three years. He will be able to remain Tesla’s CEO during that time.
Alongside the settlement, the SEC also charged Tesla with “failing to have required disclosure controls and procedures relating to Musk’s tweets,” according to the agency. Tesla has already agreed to settle this charge. Both Musk and the company will pay separate $20 million fines that will “be distributed to harmed investors under a court-approved process,” according to the SEC, and Tesla is being made to appoint two new independent directors to its board. The company will also hire a lawyer to monitor Musk’s communications, including his tweets, according to the agreement.