Elon Musk will step down from the board of Tesla, the electric car-maker that he founded, and pay a $20-million fine to the Securities and Exchange Commission (SEC).
This is according to a statement issued by the SEC over the weekend, following a fraud charge it laid earlier in the week.
Although Musk will remain as CEO of Tesla, how won’t be eligible to serve as chairman for three years.
He will be replace by independent chairman, while to independent directors will also be appointed.
The SEC last week laid fraud charges against Musk, and at the same time sought to prevent him from running any publicly-traded company.
The latest agreement is in response to those charges.
The organisation filed the suit in the US District Court for the Southern District of New York, and relate to Musk’s August announcement that he wanted to take Tesla private for $420 a share.
The announcement was made on Twitter, and read: “Am considering taking Tesla private at $420. Funding secured.”
The SEC claims that Musk made several other “false and misleading” statements on Twitter that same day.