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Elon Musk has decided to resign as the chairman of Tesla, and a fine of $20 million has been imposed on the electric car maker company as per the settlement reached with the U.S. Securities and Exchange Commission.

The SEC complained on Thursday that Musk lied in his series of tweets related to taking Tesla private at $420 per share. Musk also said that the funding had been secured. The news caused an instability in the shares of the company, and the shareholders were not happy with the tweet.

According to the settlement, Musk will remain the CEO of the company and will participate in the board meeting but not as a chairman. He has also agreed to not contest for the position of chairman for the next three years. Tesla will appoint an independent chairman and Musk does not have to admit any allegations as per the settlement.

In addition to it, Tesla is liable to pay a fine of $20 million for its inability to disclose the controls and procedures related to the ‘taking private’ tweet of Musk.

Steven Peikin, co-director of SEC’s Enforcement division said, “The resolution is intended to prevent further market disruption and harm to Tesla’s shareholders.”

Musk has described the agreement and his subsequent decision of quitting as a chairman “unjustified action.” He issued a statement that read “This unjustified action by the SEC leaves me deeply saddened and disappointed. I have always taken action in the best interests of truth, transparency and investors. Integrity is the most important value in my life and the facts will show I never compromised this in any way.”

The decision will foresee a new line of management and Musk will be further restricted on tweeting about Tesla.