Tesla shares sank last week after the U.S. Securities and Exchange Commission accused Musk of securities fraud, opening up the prospect of a long-drawn out fight that could have seen Tesla lose its leader, undermine its ability to raise capital and cripple operations.
So they sued him, dropping the company's stock by 14% (that's more than $7B in shareholder value) - Musk himself reportedly lost $1.6B in a single day.
The settlement stemmed from a lawsuit the SEC filed charging Musk with misleading investors in August with a tweet that said he had "funding secured" for taking the company private. Tesla has already agreed to the settlement and the company will also be required to appoint two new independent directors to its board and hire a lawyer to monitor Musk's communications, including his tweets.
The total included 53,000 Model 3 sedans - hitting the middle of its earlier promise to deliver between 50,000 and 55,000, the site reported Monday.
Tesla in recent years has become one of the most valuable American auto maker, with its stock worth more than $50 billion.
In two emails obtained by CNBC, Musk told staff that Tesla is close to achieving an "epic victory" on its production goals and turning a profit after years of burning through cash.
The auto company has been aiming to hit a production target of between 50,000 and 55,000 vehicles per week, according to the company's own estimates.
"This weekend is the pivot point", he said, describing it as watershed moment not just for the company but for the shift away from the internal combustion engine.
It is set to release third quarter production numbers that will show whether the production level it reached at the end of the second quarter - when it produced 5,000 Model 3 cars a week - was a blip or sustainable. The last component of the settlement is a $40 million penalty, with Musk and Tesla each paying half.
"The total package of remedies and relief announced today are specifically created to address the misconduct at issue by strengthening Tesla's corporate governance and oversight in order to protect investors", said Stephanie Avakian, co-director of the SEC's Enforcement Division.