Tesla shares were up over 15 percent in pre-market trade on Monday after Chief Executive Elon Musk settled charges with the Securities and Exchange Commission (SEC).

The SEC charged Tesla with fraud alleging CEO Elon Musk issued “false and misleading” statements and failed to properly notify regulators of material company events. The charges were in relation to a tweet that Musk posted in August saying he was considering taking the electric carmaker public at $420 a share.

But on Saturday, Musk settled the charges with the SEC, agreeing to pay a civil penalty of $20 million and give up his role as chairman of the board for at least three years. The SEC also imposed a fine of $20 million on Tesla. The carmaker must also appoint two independent directors to the board.

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