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Musk reaches settlement with US regulators

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Musk reaches settlement with US regulators

Musk reaches settlement with US regulators
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Elon Musk is stepping down as chairman of Tesla as part of a settlement with US regulators.

The Securities and Exchange Commission had charged the entrepreneur with misleading investors after an August 7 tweet that claimed he had secured funding to take the company private.

The SEC said the tweet had no basis in fact and the ensuing market chaos hurt investors.

Both Tesla Inc and Musk himself must also pay fines of 17 million euros each. Musk will remain as the company's chief executive.

The swift resolution of the matter will come as a relief to investors who had worried that a lengthy legal fight would further damage the loss-making electric car company.

Tesla has been rocked by Musk's recent behavior, which includes smoking marijuana and brandishing a sword during a webcast and attacking a British rescue diver on Twitter.