The CEO Elon Musk told Tesla that he plans to purchase $20 million of common stock during the next open trading window, according to a filing related to the CEO’s settlement with the Securities and Exchange Commission.
“Separate and apart from the settlement, Elon has notified Tesla that he intends to purchase from Tesla, and Tesla expects that it will issue and sell to Elon, $20 million of Tesla’s common stock during the next open trading window at the then-current market price,” the filing read.
Elon Musk is the largest shareholder in Tesla, holding more than $9 billion worth of the stock or more than 33 million shares before Wednesday’s announcement. The CEO bought $24 million worth of Tesla in June and $9.9 million in May, according to InsiderScore.com.
The 8-K filing also detailed Tesla and Musk’s settlement with the SEC. A judge approved the settlement with the SEC on Tuesday over allegations that Musk committed fraud when he tweeted earlier in the year that he had secured the necessary funding to take the automaker private.
The deal, viewed as a positive development for embattled Palo Alto, California-based Tesla, requires Musk to pay a $20 million fine and step down as Tesla chairman for a period of at least three years.
The company will also appoint two additional independent directors to the board within 90 days of the filing of the settlement documents.