Tesla did say that it had missed its weekly Model 3 production target on Tuesday and outlined a series of barriers it faced due to the worsening of President Donald Trump's trade war with China.
Two new independent directors will join the board of directors at Tesla.
According to the settlement, Tesla and Musk will pay $20m each to financial regulators and Musk will step down as chairman but remain as chief executive. An initial verdict of feat or failure could land as soon as Monday, in the form of Tesla's latest quarterly release.
Musk has said the company has moved from "production hell" with the Model 3 to "delivery hell".
You're looking at photos of the next-gen Tesla Roadster sent to us by a reader in the US.
Tesla did not immediately respond to a request for comment.
But its shares have been hit hard since the SEC filed the lawsuit.
In the immediate aftermath of the "funding secured" tweet, Tesla stock rose by six per cent. But he also says Tesla is making its own vehicle carriers to meet demand.
As part of the settlement with the SEC, Tesla will also appoint an independent chairman and two independent directors, responding to calls on Wall Street to relieve the pressure on Musk and provide more balance in the carmaker's management. "And I think this kind of behavior has a ripple effect, when there isn't steady leadership at the top". When confronted by customers waiting for vehicles for which they've put down a payment, Musk has said Tesla is encountering difficulties delivering cars to customers due to a shortage of car-hauling trucks, but experts say no such shortage exists and that other automakers are shipping their cars around the United States just fine.
After filing the lawsuit, SEC officials were anticipating a drawn-out legal battle, but settlement talks started up again late Friday after Musk's attorney Steven Farina sent an email asking to reopen the discussions.