Musk and Tesla will each pay $20 million under the settlement, the SEC said in a statement Saturday. Andrew Doane, who has a Model S sedan, Model X crossover and Model 3 auto and is president of the Tesla Owners Club of the Mid-Atlantic region, mustered club members to pull shifts at delivery hubs in Virginia and Maryland, and worked one himself.
In a follow-up company blog post issued August 13, Musk explained that his assertion of having "funding secured" was based on multiple encounters he had with the Saudi Arabian sovereign wealth fund, where he felt there was "no question that a deal with the Saudi sovereign fund could be closed".
The settlement will require the billionaire to relinquish his role as chairman for at least three years, but he will able to remain as chief executive.
Musk, a co-founder of Tesla, is the company's largest stockholder, owning approximately 22 per cent of its outstanding shares.
"This is a good resolution for Tesla stakeholders", Ben Kallo, an analyst at Robert W. Baird & Co. with the equivalent of a buy rating on the shares, said in an email.
Tesla jumped 16 percent to $306.50 at 6:28 a.m.
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Tesla in recent years has become one of the most valuable American auto maker, with its stock worth more than $50 billion.
He's made these assurances in large part due to progress Tesla has made in producing more Model 3 sedans - the first electric vehicle Tesla has tried to mass-manufacture.
In any case, the $40 million, which will be distributed to harmed shareholders after a court-approved process, are but a very small fraction of the more than $7 billion lost due to the whole debacle.
From the beginning of this case, the SEC requested as a penalty that Elon Musk had left the position of chairman from the board of Tesla, something that has now been achieved. However, according to the latest reports, the CEO of Tesla, the well-known vehicle manufacturing company, of course, Elon Musk resigns as chairman of Telsa. "At the same time, there will be appropriate restraints in place".
USA securities regulators settled a lawsuit against Musk alleging that he made false and misleading statements about plans to take the company private in August.
The settlement doesn't resolve investors' lawsuits, which were significantly strengthened by the SEC's complaint. Despite Friday's plunge, though, Musk seemed to be in light spirits on Friday, expressing his gratitude to the Tesla community and even posting a "Don't Panic" message on Twitter.