Elon Musk is agreeing to resign as chairman of Tesla and will pay a 20-million dollar fine to settle a fraud charge brought by the Securities and Exchange Commission. Tesla is also settling and will pay 20-million dollars as well. Musk will retain his role as CEO of the company he started but cannot return as chairman for at least three years. This penalty is less than a deal that Musk was reportedly offered earlier this week, which was to step down for two years as chairman and pay a 10-million dollar fine. Musk is not admitting nor denying that he mislead investors when he tweeted that he had secured funding to take the electric car company private at 420-dollars per share.
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