The spat began last year when Musk tweeted that he had secured the funding to take Tesla private when he did not.
Alleged Musk broke the agreement by tweeting without company approval.
Musk and Tesla will each pay US$20 million to resolve the SEC case.
Elon Musk’s tweets about going public caused stock headaches, now raising SEC concern.
SEC investigation is related to undistributed profits of non-US subsidiaries.