Nelson, who called the $20 million fine as "pocket change", noted that as part of the settlement, the company will have a "healthier level" of corporate governance as it separates the chairman and CEO roles, and requires the appointment of two new outside members to the board.
Shares of Tesla Inc jumped almost 15 percent on Monday after Chief Executive Elon Musk settled a lawsuit from the US Securities and Exchange Commission (SEC) that sought to remove him from company management.
The news of Tesla CEO Elon Musk settling with US financial regulators sent the company's stock soaring Monday morning.
Tesla Motors CEO Elon Musk reveals the Tesla Energy Powerwall Home Battery during an event in Hawthorne, California, U.S., April 30, 2015. Tesla also agreed to pay $20 million and implement procedures and controls to oversee the CEO's communications of material information after he tweeted - falsely, according to the SEC - that he secured funding last month to take the company private.
Musk invited wrath in August when he falsely claimed on Twitter that he had secured funds for a multi-billion dollar buyout of Tesla, leading its share price to swell and creating huge losses for "short-selling" investors who had bet against the firm.More news: Tiger Woods gets first win in five years at Tour Championship
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The SEC's lawsuit had sought to bar Musk from serving as an officer or director of a public company, a prospect that rattled investors.
Musk and Tesla will each pay $20 million under the settlement, the SEC said in a statement Saturday. Tesla's showroom in Paramus, New Jersey, was closed by 8 p.m. local time Sunday. Musk won't be eligible to be re-elected as chairman for three years.
Under the terms of the settlement, Musk and Tesla neither admit nor deny the SEC's allegations.
Stephanie Avakian and Steve Peikin, co-directors of the SEC's Enforcement Division, led the talks, taking the reins from the staff attorneys who worked the case, according two people familiar with the matter. On Friday, its stock dropped nearly 14 per cent. Monday's gains erased Friday's 14 percent plunge after the SEC filed its lawsuit late on Thursday.
Tesla did not immediately respond to requests for comment.