Elon Musk agrees to pay $20 million and quit as Tesla chairman in deal with SEC

Tesla CEO Elon Musk has agreed to pay $20 million and quit the company he founded, in a deal with the U.S. Securities and Exchange Commission (SEC).

From CNN:

Under the settlement, which requires court approval, Musk will be allowed to say as CEO but must leave his role as chairman of the board within 45 days. He cannot seek reelection for three years, according to court filings.

He accepted the deal with the SEC "without admitting or denying the allegations of the complaint," according to a court document.

The SEC alleged on Thursday that Musk misled investors when he tweeted on August 7 that he had secured funding to take Tesla private at $420 a share, causing Tesla's stock to soar. He had not secured the funding, the SEC said.

Separately, Tesla agreed Saturday to pay $20 million to settle claims it failed to adequately police Musk's tweet.

Tesla did not immediately reply to CNN's request for comment.