Tesla chief Elon Musk agreed to pay US$20 Million and step down as chairman for three years to settle a case with US regulators. but the biggest tests may still be to come.

The pricey concessions will satisfy the US Securities and Exchange Commission (SEC) which went after Musk for alleged securities fraud over his tweets in which he flirted with taking the company private.  That went against the legal procedure to actually make such a thing happen.

"When companies and corporate insiders make statements, they must act responsibly, including endeavoring to ensure the statements are not false or misleading and do not omit information a reasonable investor would consider important in making an investment decision," said SEC's chairman Jay Clayton.

Tesla will also have pay a US$20 Million fine, and Musk will be allowed to stay on as CEO.

On Tuesday, Tesla will report to investors on whether the company can sustain and surpass its long-promised target of building 5,000 Model 3s per week.  The report could give some indication whether Tesla can fulfill Musk's pledge to turn a profit in the third and fourth quarters.  In the second quarter, Tesla lost US$742.7 Million and used up more than $430 Million of its cash reserves, which now have been reduced to $2.2 Billion.

The status of Tesla's cash reserves is important as the company faces two major bond payments:  $230 Million in November, followed by a whopper of $920 Million in March.  It can pay that obligation with stock, but only if the share price is above $360 - but as of this writing, Tesla is trading at just under $265 per share.