The settlement between the Securities and Exchange Commission and Tesla Inc. was approved Oct. 16 by U.S. District Judge Alison Nathan in New York City, Bloomberg News reported.

The SEC had sued Tesla CEO Elon Musk for allegedly misleading investors after Musk tweeted that he was taking the electric-car company private at $420 a share and had secured funding.

As part of the settlement, Musk agreed to resign as Tesla's chairman, pay a $20 million fine and accept greater oversight of his public communications. Tesla was also ordered to pay a $20 million fine and appoint two new independent directors.