Elon Musk

Updated at 1:02 a.m. ET Sunday

Elon Musk, Tesla's chief executive, has reached a deal with the Securities and Exchange Commission to settle a securities fraud charge brought against him on Thursday, the agency announced on Saturday.

Under the terms of the settlement, Musk has agreed to step down as chairman of the Silicon Valley-based company, but will remain in his post as CEO.

Updated at 9:32 p.m. ET

The U.S. Securities and Exchange Commission is suing Tesla CEO Elon Musk, alleging securities fraud a month after he announced that he planned to take the publicly traded electric-car company private.

"Musk's false and misleading public statements and omissions caused significant confusion and disruption in the market for Tesla's stock and resulting harm to investors," the lawsuit says.

Tesla said on Tuesday it was complying with a Justice Department request for documents, in connection with Chief Executive Elon Musk's announcement that he was taking the publicly traded company private.

Tesla Motors started selling its stock to the public in 2010 — the first initial public offering of a U.S. automaker in more than a half-century. On Tuesday, Tesla CEO Elon Musk said he's considering a reversal — taking the electric car company private.

As he often does, the outspoken entrepreneur took to Twitter to deliver the news. "Am considering taking Tesla private at $420. Funding secured," Musk tweeted in early afternoon.

Tesla Lays Off 9 Percent Of Workforce

Jun 13, 2018

Tesla will lay off about 3,500 workers in an effort to boost profitability, CEO Elon Musk wrote in a company email.

"What drives us is our mission to accelerate the world's transition to sustainable, clean energy, but we will never achieve that mission unless we eventually demonstrate that we can be sustainably profitable," Musk wrote.

File photo

Albany is expressing confidence in the future of the SolarCity plant in South Buffalo, after stockholders of both SolarCity and car company Tesla Motors agreed to a merger.

Photo courtesy of Tesla Motors Twitter page

Buffalo will play a key role in the development of the newest generation of solar panels.

WBFO News File Photo

News that Tesla Motors may purchase Solar City is drawing mixed reactions. While some are concerned the development projects poorly on the future of the company's solar panel manufacturing plant in South Buffalo, Governor Cuomo  says he "can't see anything but good" coming from the merger.