It looks like Elon Musk's recent fiasco with the US Securities and Exchange Commission (SEC) has cost him a hefty fine, as well as make him lose a key position in his own company.

After rattling investors via a series of tweets regarding the privatization of Tesla, the embattled CEO has agreed to step down from his position as chairman of the company. According to the SEC, Musk has agreed to not only relinquish his position, but will also pay a hefty $20 million fine (in which the company also has to pay an equivalent amount).

Musk is required to step down from his role as chairman within 45 days and he is not allowed to be re-elected for three years. Not only that, Musk is also required to appoint two new independent directors to its board.

“As a result of the settlement, Elon Musk will no longer be Chairman of Tesla, Tesla’s board will adopt important reforms -- including an obligation to oversee Musk’s communications with investors -- and both will pay financial penalties. The resolution is intended to prevent further market disruption and harm to Tesla’s shareholders,” said Steven Peikin, co-director of the SEC's Enforcement Division.

However, Musk will remain as CEO of the company under the agreement made by the SEC. At the moment however, Tesla has yet to name a new chairman.

To recap, the SEC accused Elon Musk for fraud and were pursuing a case against him. The SEC stated that his plans to make Tesla a private company have misled investors, resulting in Tesla stocks to tumble. According to reports, Musk's annnoucements caught investors by surprise, many saying that they were unaware of Musk's actions.