Still, despite the ever-present controversy and turmoil surrounding Musk and his baby, Tesla still has a ton of believers on social media.
According to The Washington Post, the SEC had offered similar settlement terms a week prior to the lawsuit that Musk passionately declined, saying the "unjustified action" left him "deeply saddened and disappointed". Hitting production and delivery targets has become increasingly important for Tesla's relationship with Wall Street investors after the auto maker struggled to increase production to meet demand of its new Model 3 electric vehicle. Achieving those milestones would be a rebuke to may on Wall Street who have insisted that Tesla would need to raise additional funds in the coming months.
Neither Musk nor Tesla admitted or denied the SEC's findings as part of the settlement, which still must be approved by a court.More news: Fed hikes key rate for third time this year
He told his 22 million Twitter followers on 7 August that he might take Tesla private at $420 per share and that there was "funding secured". He'll also not be eligible to be elected into the Chairman position for three years, Time reports.
The SEC, in a complaint to the court, claimed that Elon Musk had failed to abide by the anti-fraud provisions of the federal securities laws. Tesla is due to appoint two new independent directors, with the board expected to oversee Musk's communications with investors.More news: Arsenal's Petr Cech injured during defeat of Watford
"The resolution is meant to prevent further market disruption and harm to Tesla's shareholders", Peikin added.
According to analysts, the settlement is probably the best thing for both the SEC and Musk and Tesla, because the SEC is showing it can act to enforce change in protecting shareholders, while Musk-removed as chairman-will keep its CEO role at Tesla: a role analysts and Tesla believers see as crucial for the company.
The agreement with the US Securities and Exchange Commission will come as a relief to investors, who had feared a lengthy legal fight. Saturday's settlement saw the SEC pull back from its demand that Musk be barred from running Tesla, a sanction that many investors said would be disastrous for the loss-making electric carmaker.More news: Kavanaugh accuser Ramirez contacted by FBI: lawyer