Two new independent directors will be appointed to the board and a new committee of independent directors will be expected to put in place additional controls and procedures to oversee Musk's communications.
Musk's "funding secured" tweets were made on 7 August, and claimed that he was planning to take the company private at a price of $420 per share - a premium of just over 20 per cent of the company's stock price (which has since nose-dived) at the time.
The news of Tesla CEO Elon Musk settling with US financial regulators sent the company's stock soaring Monday morning. The SEC's lawsuit charged that the tweet, which caused Tesla's shares to jump, was misleading because he did not actually have the funding lined up for such a move. Saturday's settlement saw the SEC pull back from its demand that Musk be barred from running Tesla, a sanction that many investors said would be disastrous for the loss-making electric carmaker. On Friday, its stock dropped nearly 14 per cent.
Tesla in recent years has become one of the most valuable American vehicle maker, with its stock worth more than $50 billion. In an interview with Politico in 2014, the former vice president said he'd love to own a Tesla.
Daniel Sturridge stuns Chelsea with a goal of the season candidate
" Liverpool will be stronger and Liverpool will be more intense about the game", Wright told Premier League Productions. If you play them again, you try to correct that case.
Under the agreement - which Clayton said was "in the best interests of our markets and our investors, including the shareholders of Tesla" - Musk will be ineligible to serve as chairman of the board for a period of three years and will be replaced by an "independent chairman", according to the SEC. And during a Reddit AMA the same year, he said "in Musk I trust" when asked if Telsa will make it as a vehicle company.
Steven Peikin, co-director of the SEC's Enforcement Division said the resolution is meant to prevent further market disruption and harm to Tesla investors.
Stephanie Avakian and Steve Peikin, co-directors of the SEC's Enforcement Division, led the talks, taking the reins from the staff attorneys who worked the case, according two people familiar with the matter.
Still, despite the ever-present controversy and turmoil surrounding Musk and his baby, Tesla still has a ton of believers on social media.
Tesla shares took a steep dive last Friday, plunging 13.90% amidst news of the SEC's lawsuit against the outspoken CEO.