Elon Musk will relinquish his role as chairman of the Tesla board to settle a case opened on Friday by the Securities and Exchange Commission, the agency announced on Saturday.

Musk can be re-elected to the position after three years. He will remain chief executive officer of the company.

The 47-year-old entrepreneur and Tesla will both pay separate $20 million penalties. The electric carmaker will also appoint two new independent directors and put additional controls on Musk’s online communications.

“The total package of remedies and relief announced today are specifically designed to address the misconduct at issue by strengthening Tesla’s corporate governance and oversight in order to protect investors,” Stephanie Avakian, co-director of the SEC’s Enforcement Division, said in a statement.

The case centered around a tweet from Musk that he has secured funding to take Tesla private, offering to purchase shares at $420 a piece. The SEC charged that Musk acted inappropriately when he made the knowingly false statement.

A Tesla spokesperson did not respond to request for comment.