Billionaire businessman Elon Musk has stepped down as the Chairman of Tesla, after storms of a tweet where he claimed he has secured the funding and investor support to buy Tesla.
According to reports from Time, Elon Musk will pay a $20 million penalty in addition to stepping down as the chairman to settle fraud charges brought by the U.S. over his claims about taking the company private.
The Securities and Exchange Commission (SEC) sued the billionaire and all parties reached an agreement on Saturday night. In the agreement, Musk will resign as Chairman but will remain CEO and also a member of the board.
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He’ll also not be eligible to be elected into the Chairman position for three years. Tesla must also hire an independent chairman to oversee the company.
Photo Credit: Mark Brake/Getty Images
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