In a deal announced late Saturday between Tesla and the Securities and Exchange Commission, Elon Musk will be stepping down as Chairman of Tesla Motors and barred from holding that position for 3 years. Additionally, Musk and Tesla will pay $20 million in fines each.
As part of the settlement, Tesla will add two additional board members and more closely monitor Mr. Musk's public communications.
Neither Tesla nor Mr. Musk admit wrongdoing as part of this agreement.
The settlement comes as a surprise as apparently Musk had rejected a similar deal earlier this week.
The settlement stems from a lawsuit filed by the SEC against Musk and Tesla over an August 7th tweet by Mr. Musk that "funding is secured" to take Tesla private. Federal investigators found that the deal referred to in the tweet was still in the early stages and thus was considered deceptive to investors.
Update: Musk will stay on as CEO. Resigning only as Chairman of the Board.