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In aboriginal August, Tesla CEO Elon Musk acquaint a acute tweet: “Am because demography Tesla clandestine at $420. Funding secured.” On Saturday, two canicule afterwards the US Balance and Exchange Commission filed a accusation adjoin Tesla CEO Elon Musk for “false and misleading” statements fabricated on Twitter, Musk, Tesla, and the admiral accomplished a compromise—a settlement.

According to abstracts filed in a New York federal court, Musk and Tesla will accept to anniversary address $20 actor checks for the misadventure, which will be disbursed to investors afflicted during the agrarian bazaar swings that occurred afterwards Musk’s tweets. (Tesla appear in backward August, 17 canicule afterwards the tweet, that it would abide public.) The electric carmaker will accredit two added absolute associates to its board. The aggregation will accept to accumulate close blank over Musk’s communications with investors—including by tweet. Most critically: Musk will accept to footfall bottomward from his role as Tesla administrator for at atomic three years. He will abide on as the company’s CEO and will absorb a bench on its board.

In extensive a adjustment with the federal administration agency, Musk and the aggregation assume to accept antipodal course. Last week, Tesla had reportedly been on the bend of a adjustment with the SEC, afore abetment out.

Despite that waffling, acknowledged experts say the aftereffect could accept been much, abundant worse for Musk and his car company, area he has served as administrator back 2004 and CEO back 2008. “Frankly, I appearance this as somewhat favorable to Musk,” says Stephen Diamond, a assistant of balance law and accumulated babyminding at the Santa Clara University School of Law. “He charcoal CEO, he’s still the ascendant stockholder in the company, and he still charcoal in abode on the board.” (Musk owns about 22 percent of Tesla shares.)

By accommodated his role as chairperson, Musk does lose his adeptness to alarm lath meetings, as able-bodied as set their agendas. His backup in that role, whom the SEC demands be “independent,” will breach Musk’s allegorical anchor on the company, at atomic a bit. (Indeed, a core of the company’s investors accept been calling for Tesla to formally abstracted the roles of CEO and administrator for years now.) “This will serve as a affectionate of analysis on the delinquent ability of Musk,” says Diamond. As CEO, Musk will absorb his ascendancy over circadian operations of Tesla.

A above catechism looms: Who will the new administrator be? Will that aces be a absolutely absolute analysis on the abrupt Musk, accepted generally for his business accomplishment and inventiveness, but whose accomplishments accept occasionally accepted annihilative and expensive? Observers accept continued d that Tesla’s lath associates are not about absolute enough. (Brother Kimbal Musk is currently on the lath for both Tesla and Musk’s SpaceX venture. Antonio Gracias, a architect of Valor Equity Partners, is a longtime acquaintance of Musk’s and has invested in PayPal and Solar City.)

“If the new administrator is somebody who is abnormally able and addition who will angle up to Elon, again it will be a change in his life,” says Erik Gordon, a advocate who studies entrepreneurship at the Ross School of Business at the University of Michigan. “If the actuality is as absolute as the allegedly absolute admiral of Tesla, again it apparently doesn’t change his activity actual much. He will boss that administrator in the way he has bedeviled his board.”

One big affair that will absolutely change for Musk: The adjustment instructs Tesla to “implement binding procedures and controls to baby-sit all of Elon Musk’s communications apropos the Aggregation fabricated in any format.” Including—you estimated it—Twitter. “The affair that will be both base for Musk and acceptable for him is that he will be the alone CEO I accept anytime accepted who will accept to get his communications accustomed afore he makes them,” says Gordon. Apprehend this to be a accurate affliction for Musk, who has congenital a acceptability off his irreverent, goofy, startlingly transparent, and lawsuit-spurring amusing media posts. Professional cheep editors, brightness up those resumes.

Not clearing with the SEC could accept led to a added acute outcome. The SEC’s antecedent clothing approved to bar the CEO from acceptable an administrator or administrator for any accessible company, conceivably for life. A accident adjoin the federal bureau in cloister may accept additionally fabricated it difficult for Musk to accession money for his non-Tesla ventures: rocket-building SpaceX, neurotechnology aggregation Neuralink, and basement adventure the Boring Company. Now, the final adjustment does not crave Musk nor Tesla acceptance or abstinent the SEC’s antecedent allegations of fraud.1

While the adjustment neatly ties up Tesla’s accepted affairs with the SEC, the carmaker still has two added Twitter-related headaches. The aboriginal is the appear Department of Justice delving into the “funding secured” tweet, which is actuality advised as a accessible case of bent fraud. The adjustment actuality may not accept any address on that investigation, acknowledged experts say. The added is a alternation of class-action lawsuits filed by investors who say they absent big money in the bazaar animation afterward Musk’s August Twitter statements. Though the $40 actor in fines will be acclimated to abate investors, acknowledged experts apprehend the plaintiffs to advance for alike added funds. “Those lawsuits accept consistently been the bigger accident to Musk and the company,” says Gordon.

1 Adapted 9/30/18, 7:05 PM EDT: This adventure has been adapted with added capacity about the parties’ settlements with the SEC.

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