Elon Musk to resign as Tesla Chairman due to fraud lawsuit

Tesla CEO Elon Musk has made a deal with the investigation into the fraud case and will step down as chairman of the board of directors. This was reported on the website of the US Securities Commission.

The report notes that Musk will remain the CEO of the company. Musk and Tesla will also have to pay $20 million each.

Reuters reports that investors believe the agreement will help improve the company's position, which has soured due to some of Musk's actions, including insults on Twitter of a British diver.

“It is in the best interest of our markets and our investors, including Tesla shareholders, to resolve this issue quickly on agreed terms,” SEC Chairman Jay Clayton said in a statement.

Earlier it was reported that the US Securities and Exchange Commission sued Musk because of a tweet about the buyback of the company's shares. She accused Musk of fraud, as he misled the company's shareholders with his tweet.

Elon Musk himself called in price by more than 10% amid the news the accusation of the Securities Commission unfair, and Tesla shares fell .