Embattled Tesla Inc (NASDAQ:TSLA) CEO Elon Musk has settled charges brought by the Securities and Exchange Commission stemming from a tweet last month claiming to have the funding to take the electric-car maker private.
According to the SEC, Musk has agreed to step down as chairman and pay a $20 million fine. The company will also pay $20 million.
Among the conditions of the settlement, the company must put controls in place to oversee all of Musk's communications with investors.
Musk will remain in his role as CEO. He neither admits nor denies the allegations as part of the settlement. He will be ineligible for re-election as board chairman for three years.
The deal is subject to court approval, the SEC said.
Tesla shares jumped 16% to $307 in premarket trading.
READ: SEC Settlement
In August, Musk tweeted that he was considering taking the company private at $420 per share and that he had "funding secured." The tweet sent Tesla shares on a wild ride.
Musk still faces a probe by federal prosecutors over the tweet.
Tela shares closed 13.9% lower to $264.77 Friday.
--Updates share price, adds Twitter oversight--