A US judge has approved the settlement between the Securities and Exchange Commission, Tesla and its Chief Executive Officer Elon Musk.
Mr Musk agreed to pay a $20m fine and step aside as Tesla's chairman for three years to settle charges that could have forced his exit from Tesla.
The company also accepted a $20m fine, despite not being charged with fraud.
The company's shares had taken a hit last month after the US securities regulator accused Mr Musk, 47, of fraud over "false and misleading" tweets on 7 August, in which he suggested taking the electric car maker private and claimed he had funding had been secured.
As per the settlement announced on 29 September, Tesla must appoint an independent chairman, two independent directors and a board committee to set controls over Mr Musk's communications.
On 4 October, just hours after the court ordered him and the SEC to explain why their settlement was fair and reasonable, Mr Musk appeared to mock the SEC on Twitter.
"Just want to that the Shortseller Enrichment Commission is doing incredible work," Mr Musk, a frequent critic of investors betting against the company, wrote. "And the name change is so on point!"
US judge approves SEC settlement with Tesla's Elon Musk
