Judge approves SEC settlement with Tesla, Musk

Judge approves SEC settlement with Tesla, Musk
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A federal judge on Tuesday approved a settlement between the Securities and Exchange Commission (SEC), Tesla and its CEO Elon Musk.

The settlement follows an SEC investigation last month into a Musk tweet from August in which he said he had secured funding to take Tesla private at $420 per share.

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The settlement requires Musk to step down as chairman and pay a $20 million civil penalty. Tesla will also have to pay a separate $20 million fee. The company will not be charged with fraud.

Musk appeared to mock the SEC on Twitter after being ordered by the court on Oct. 4 to explain the settlement, calling the agency the "Shortseller Enrichment Commission."

A representative from Tesla declined to comment on Tuesday's ruling.

Updated at 11:30 a.m.